April 2, 2020
How to Launch a Luxury Startup

How to Launch a Luxury Startup

(bright music) – Hi, I’m Syama Meagher,
CEO of Scaling Retail and today I’m gonna talk
to all of you luxury brand future start-up owners today. I know, that was a mouthful. Really, what I want to
start to talk to you about is how you are positioning to grow this luxury brand of yours. And what’s so important
here to consider guys is a luxury business is so
different than it used to be. Back in the day, when the
heydays of the Christian Diors, the Valentinos, the Chanels,
you know, these were big luxury houses because it was
a very small niche market. You know, there weren’t so
many players in the game. There wasn’t Shopify,
there weren’t so many access points for people
to start businesses. And my how the game has changed now. In fact, it is easier than ever for anyone to start anything. But a luxury business is
still a little bit different. In fact, it’s a little bit more difficult to compete in the luxury market today, which is why I want you
to start to think about a few key points here, before you decide to take that plunge. Or even to help you
structure the development of your new brand. The first thing to consider. Having a luxury brand these
days is very different, because consumers are different. What consumers want,
what they’re looking for is so different now than it used to be. These days, people take a lot of value in things like, is it made sustainably, where is the fabric from, what communities am I
supporting with those products. Also things like, is this artisanal. There are so many factors
today that come in to starting a luxury
brand that you actually have a big opportunity here
to take advantage of that. So how to do that. Well number one, let’s take a look at your competitive matrix. Now your competitive matrix
is really all the brands that you’re gonna sit next to. Now I surely hope that on that list isn’t, I’m gonna sit next to Chanel
and Balenciaga and Fendi, because as we all know, as a start-up, you’re not a heritage brand. It’s just impossible. You can’t be a heritage brand until you’ve been around 20, 50, 150 years. So if your goals are
to be a heritage brand, then build the business now, but no, you’re not gonna be heritage
for another 50 years. The other thing to think
about is the current matrix of the young luxury brands that are totally doing it really well. And there are a lot out there. One of my favorites is Miette. They’re an amazing design house that actually infuses a
lot of sustainability, a lot of ethical practices,
into very well designed high price point, ready-to-wear
and accessory pieces. And because of their branding,
because of their ethics and their values, they’ve
actually attracted a very core consumer base that
believes what they believe. So as you are developing
your competitive matrix, think about the other brands out there. Think about who is doing
what in your space, that you actually can take some pointers on their distribution. The luxury boutiques that are selling your competitors’ brands are
probably ones that are going to be more than likely to sell your brand. So it’s really a matter of
doing your due diligence and figuring out where exactly
you’re meant to be fitting. The next thing, know that
with a luxury start-up, your investments are going to be high, especially on the sides of advertising, on the sides of all of the branded assets that you’re creating, on the side of your
website, your copywriting, your images, everything needs to tell this beautiful romantic story as to why someone’s going to spend $1,200, $2,000, $5,000 dollars on something. So if you’re not investing
into the right assets to sell your product, you’re not gonna get the
returns that you’re looking for or be able to even make that impression. Now one misconception
about the luxury business. It’s really not going to be as simple as in other brands, or
advanced contemporary or even aspirational
markets, where you are just pumping a lot of money
into, let’s say Facebook advertising or Instagram advertising. This is more nuanced. This is more niche. This is something where you need to romanticize your customer. You need to have feeling and passion and that’s going to come through having a very small list of early adopters, building that niche marketplace and really being able to
cultivate that consumer on a very small level. Your stylist program
is going to be intense. Your celebrity styling and
celebrity gifting program, working with influencers, is
going to be really important. Because again, we’re
creating that perceived value of something that people want to attain, they want to strive for. And your brand, will represent that. Now the other side of
having a luxury start-up means you need to be willing
to be in this game for awhile. You’re not going to see high
RRY’s in the first season or two seasons or three seasons. We’re looking here at
a three year plus game in order to get you the visibility, especially if we’re not
already a famous designer, who’s coming to the table, or
even doing a brand relaunch. This is your first time, expect to spend some time with this. Now lastly, as we’re
wrapping up, something that’s important to keep in mind here is, consumers these days, they
need about six touch points in order to buy something. They need to feel as if
you are where they are. Some of that might be
through digital marketing, through things like Instagram. Or it might be things
like attending parties and events and going
to more exclusive types of environments, where
you can actually be around your potential customer. Because so much of this
is going to be based on relationship, product and perception. Alright guys, you luxury start-up owners, please feel free to email me. [email protected] I would love to help you launch and scale and grow your business. I’m certainly not a
first time at this rodeo in the luxury market, and
have a wealth of information to share with you from places like Gucci, Barneys, you name it. So, shoot me an email. And in the meanwhile, while
you’re still coming up with your fantastic idea,
leave a comment below. I’d love to know how this
impacted your business and head on over to Instagram
and Facebook and Twitter where you can find me. Thanks so much for
watching. Have a great day.

44 thoughts on “How to Launch a Luxury Startup

  1. Loved this. Thanks so much for posting, Syama! I especially found a few of your points helpful – that you should be prepared to be in the game for a while, maybe even a few years, before you see your sales take off, and customers need to be exposed to your brand via multiple touchpoints before they'll be willing to buy. I need to really think about this second idea and decide what all of my touchpoints should be. Do you think the various social channels equal different touchpoints (e.g. would Instagram, Facebook, and Pinterest count as 3), or would you group them together into one?

  2. Im looking forward to speaking with you, I am looking out venturing out into the luxury mens dress shoe business, I have what i think is an excellent product and good price for it. Great video and hope to speak to you soon!

  3. Hello there, go out and check out are web site www.azurbikini.com , bikini made in italy, made with love from Venezia.

  4. hey ! never really got your name there, but fantastic video! As I'm watching it, i'm trying to figure out how to apply these principles onto fine-art (me being an artist), as there are similarities, in terms of buyer profiles and price-points.

  5. The tips you've given in this video to complete in the luxury market, would you say the same rules apply for here in the UK?

  6. It was really helpful. Gave me alot to think n reason about about the brand I'm working on…
    I pray God puts me thru, I really need this to work out for me.

  7. Hey I am Dylan and I am 16 at the moment. I really want to make a brand later that is going to be between normal brands and luxury. Pricepoint between tommy hilfiger and versace for example. The biggest problem I have when I am making a game plan for myself is the making of the product. How can I find a good place to let them produce my product and how do I find a place that delivers the best quality? Do I need to have more contacts in brands for that?

    Thank you for reading and the nice video!

  8. What on earth is that awful music about?! It is neither luxurious nor ambient. It distracts from your words and makes me think of an old computer game!
    Please remove it?
    I SO wanted to hear your message/opinions but instead I am going to click away to another youtuber.
    Please rethink your music in the future, no music would have been better than this choice.

  9. Greetings from New Zealand. Please let me know how to spell the name of one of your favourite design houses. I thought you said "Miette" but I cannot locate it via Google. Clarification by way of spelling would be most helpful. Thank you so much.

  10. First, you are beautiful! Luxury is obviously your forte! Second, thank you so much for sharing your inside secrets to those of us that need a lil more information! You really gave me some useful pointers and inspired some new strategies! Follow me @poisedin (twitter) Poised Excellence (IG & FB), and my new Online Boutique www.chicandpunderfullypoised.com Email me @ [email protected] so I can send you the custom made coupon code just for you! Thanks again!

  11. Looking to start your own Fashion Brand but have no idea where to start? All your questions can and will be answered. Check out this Webinar to find out more! ​https://www.youtube.com/watch?v=tgSPGD0O7pg&t=1s

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