Questions

How To Make Money In The Online Luxury Market

For experts to answer a rather difficult question for customers who create luxury content and sales on market.

2answers

First of all, this will come down to branding and how you wish to position yourself relative to the vertical (niche) you wish to operate in. Things such as market research do help to a certain extent but it will also come down to what that luxury item is.

For instance; in the sense of luxury watches or jewellery, the brand will play a greater role owing to the provenance, and the target market who wish to pay/acquire those particular items will put more weight into the brands carried as a way to validate the brand of the place that stocks those particular items.

This leads to the secondary consideration is the particular clientele you wish to approach. You'll notice that in the areas regarding luxury you might find two major categories; sellers who wish to offer the absolute lowest price for luxury items thereby making them more accessible, or those that offer more of the concierge service and charge accordingly. In both cases, you will be able to tailor your approach from your presentation, stock levels/selection, pricing, features (things that you want to stand out on against your competitors), and overall service delivery which makes your marketing and sales channels much easier to select and focus on.

Once you have a clear idea of those basic questions, the next stages become much simpler as you aren't trying to answer HOW to make money, you're answering the question of WHO are you going to make money off.

Ultimately; your clientele and business model can be profitable if managed properly and if you keep that in mind; a marketing strategy can be made that is actionable and sustainable.

If you wish, happy to talk more and provide more detail should you have more follow-up questions.


Answered 3 months ago

Hi , Firstly What do you mean by Money - is it the profitability that you are worried about or Top line ( increasing Sales) ?

If it's the first (profitability) then you need to make sure that aspiration of the brand needs to be higher than it's actual use wherein delivering customer ecstasy , which would result in you charging the consumer's the right price for the product which takes care of cost's and leaves profit's for you. Easy way of doing this is which doing the pricing of the product put a multiple on the cost to arrive at price which is value for money for the consumer but at same time resulting in profits.

If it is the Second (Top line) then you need the below steps.
1. Develop all online retail channels like registering & trading on Luxury E-com portals , social media market places like FB Shop , Insta Shop etc , your own Ecom Website or subscription based services.
2. Refresh your assortment on frequent basis and ensure good balance of Width & depth.
3. Use discounted channels to liquidate your non sellers / old merchandise and much more

Hope you found the information useful !!

For more info on this and strategies we can always get on call.

Thanks


Answered 3 months ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2020 Startups.com LLC. All rights reserved.