Premium VS. Luxury Brands – What You Need to Know
Premium or Luxury?
From 13 to 15 May, Sofia was а host to WebIt Festival.Europe and our team again did not miss the opportunity to be part of the event.
There were many interesting topics related to hot topics such as:
• Digital economy
• Digital marketing
• Blockchain technologies
• Cyber protection
• Digital entertainment and media
And much more
One of them was the topic of Premium vs. Luxury brands.
If you wonder what’s the difference between luxury and premium brands, keep on reading 🙂
For many consumers, the distinction between premium and luxury goods is unclear, but there are clear differences for branding purposes. A common misconception is that luxury goods are more expensive than premium ones, but the price does not determine luxury. It is true that in most cases luxury goods are more expensive, but luxury is determined by the history of the brand, the scarcity of the goods and the prestige of the brand.
On the other hand, first-class (premium) goods are determined by the price-quality ratio. The consumer thinks it is worth paying a premium for a premium brand because of the quality of the product, while the luxury brands usually have a price that far exceeds their actual value.
The difference in building a brand strategy between the two types of goods is quite large. It would be a mistake for any type of brand to simulate the marketing and brand strategy of the other – premium brands can`t become luxury brands simply by raising their commodity prices. And luxury brands should not try to expand their attractiveness into a premium market or they risk losing their exclusivity, which makes them more attractive.
Do you have a favorite brand?
Digital Marketing Specialist
ExpandX Marketing & Web
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