Transcription
All luxury brands want to sell expensive products during the Christmas season, don't they? Even the most promising campaigns can go completely wrong. So, let's talk about the one big mistake that is ruling your luxury brand's reputation and the simple psychological strategies that can lead to increased revenue at this time of year.
I'm PA Russell, co-founder of Luxury Academy. And with years of experience as a trusted training partner for renowned luxury brands worldwide, I've gained unique insights into what makes a successful luxury Christmas campaign. Now, if I were to tell you that the big mistake made in this advertisement is the same mistake that's killing your Christmas campaign, would you know what it is? I don't really expect you to, because I see so many brands doing it. If you are making this mistake, you need to address it immediately. At first, it might not seem important, but over time, it will diminish your brand reputation, and you will no longer be considered luxury. You don't want to end up like Hunter's Wellies, once famously worn by Diana, the Princess of Wales, now heavily discounted on ASOS.
As you might have guessed, the answer is discount. Discounting luxury goods at any time is foolish, but at Christmas, it really is criminal. We all remember the backlash that Burberry faced in the '90s, don't we? The brand's reputation for luxury and quality was called into question because of the perceived dilution of value and exclusivity. While offering promotions over the Christmas season is common for other sectors, luxury brands absolutely should avoid this. Overemphasis on sales and discounts can erode the perceived value of the brand and attract customers who are solely motivated by price rather than quality. Remember, there's no such thing as affordable luxury, even at Christmas time.
Instead, let me share with you the psychology the most exclusive luxury brands tap into in order to succeed at this time of year. When we all convince ourselves that love, affection, and social status can be bought and wrapped in expensive wrapping paper, the first thing to understand is that luxury brands aren't just selling expensive products at Christmas. They're selling dreams. They're selling aspirations. And sometimes, the ludicrous idea that buying a £10,000 Hermès can somehow, through the magic of the season, give you a personality.
The first strategy to explore, and perhaps the most obvious, is exclusivity. Nothing convinces us more that we absolutely must have something by hook or by crook than being told that you can't have it. That's why brands offer limited edition seasonal collections featuring exclusive products or collaborations with renowned artists. When we make limited numbers of other products, suddenly your product is now scarce. You've activated the FOMO response, fear of missing out, in every luxury consumer who are now willing to sell a kidney or go one-on-one with another shopper over whatever it happens to be to secure the perfect gift. That's why brands like Dior can sell an advent calendar for £600, but another brand can only sell one for £40.
Another successful strategy is to plan and host exclusive seasonal events, such as private shopping experiences. So, instead of discounting, you should be thinking about how you can create the most exclusive products or experiences at this time of year.
Next, you mustn't ignore emotional advertising. People have a storybook idea of what a perfect Christmas is, even though in reality, people's Christmases are nothing like that. It's a desire for belonging, for love, and for a sense of place, all very powerful human desires. It's a deep-seated need to belong. It's also a release of oxytocin, the love hormone. These ads in front of a tree and a roaring fire, and people coming home from a million miles away and surprising their family, who all seem thrilled to see them, they burst into tears of joy, releases oxytocin again, which reinforces the feeling of a need to prolong and be loved. And maybe this product will do that. Tap into that, but be careful not to fall into the tacky.
One practical way that most luxury brands, especially on the high street, do this is to create exquisite window displays featuring elaborate decorations and high-quality props to stir those emotional advertising desires.
And finally, I suppose aspirational allure is very much at play at Christmas. People treat themselves, don't they? And they drink champagne and eat expensive food and buy expensive clothes, all in an effort to feel a temporary membership to a club that they don't get to be part of any other time of the year. So, for those few weeks in the run-up to Christmas, they're experiencing what it feels like to embrace hedonic motivation, the personal pleasure, and be part of that club of consumers who don't have to worry about the cost. Some luxury brands are able to tap into this by creating gift guides and curated collections that are tailored for the season. These are specifically designed to appeal to gift buyers, obviously, until the credit card bill comes in January, and then there's a whole other set of emotional release.
And I want to make a special mention of what can only be described as a fight for survival when a person, usually a man, performs the last-minute ritual dash around the stores on Christmas Eve in an attempt to not look like it's left everything until the last minute again. These stressed-out balls of cortisol are called price-desensitized consumers in the industry because they are very much in the impulse buying category, and this is great for any luxury brand.
My advice to you in the run-up to the Christmas season is: do not discount. Instead, focus on activities tied to the three psychological states of exclusivity, emotion, and aspiration. So that's my gift to you, and I feel great now because when we give, we release serotonin, the mood stabilizer hormone. That's why giving gifts is just as pleasurable, and sometimes even more pleasurable, than receiving them.