How Brandon Blackwood Did It
I've been watching this brand and I have to say: the brand development and the relaunch have been a pleasure to watch.
Here's what he did:
He broke the high barrier to entry in the luxury market by attaching his brand to a HOT topic at a very LOW PRICE: System Racism.
The ESR totes were introduced at an unthinkable rate for handbags: $85.
You may be thinking that this is a new phenomenon, but it's the same technique is used by luxury brand giants like Louis Vuitton - only with different products. They use things like key rings and belts to introduce you to their premium products at a low price point. I call it the 'taste of luxury technique' - where you attract customers who cannot afford to shop at your higher price points into paying a considerably less amount to wear the brand.
Hot Tip: Use the 'Taste of Luxury' in your brand by offering a low-level product higher than market value, but lower than luxury value to build brand loyalty and notoriety.
So with Systemic Racism being an important topic, consumers desire to purchase Black-owned brands in the fight against injustice, and the taste of luxury technique he's been able to capture the market value that used to belong to brands like Coach and Michael Kors - and perhaps even tapped into customers who didn't even think they were ready to buy luxury yet.
But now - those $85 dollar bags are a thing of the past.
In an effort, a successful one - I might add, to reclaim his position in the luxury market. His newer collection now starts at $70 - FOR A WALLET! Just $15 below the initial price point for a handbag.
Talk about a sophisticated bait & switch. But we don't hate the players. We learn the game. Bags now start at $125 and top out at a hefty $8,500.
He's got a little something for everyone - for now. My prediction is that in the coming years the price will continue to increase and the resell market for ESR totes will be rampant - considering the fact that they are NO LONGER available - anywhere.
Definitely a Louis Vuitton move.
Now recently, he's been under fire for his team's lack of management ability to send out orders and updates. However, there are still several loyalists who say that the community needs to give the brand time to grow.
What do you think?
Luxury still needs to leave something to be desired
Align your brand with causes you care about and find ways to integrate it into the product or service experience
Use teaser products to introduce your brand to clients who are wary of investing in the luxury experience - but always have a smaller number of the higher tier products for the clients that are ready
Create limited edition products when entering a new market and hold them off for future releases to build urgency and lack of availability for your current and future customers
Do you need a luxury pricing strategy? Book a call with The Boss Blueprint Team today.