Tracy Holland, co-founder, HatchBeauty05.04.15
Throughout my career, I have encountered many brand founders with a common fantasy. This dream is to be associated with a brand that is featured in prominent beauty publications, sold at the most beautiful retail environments and able to reach a luxury consumer.
Beauty entrepreneurs looking to develop prestige brands must remember that the luxury consumer is affluent, typically highly educated and incredibly informed. That means successful brands in this space must be credible, authentic, well researched and well managed in order to engage and keep this customer.
In order to evoke an enhanced sensibility, careful consideration should be paid to a variety of factors, which work together to ultimately deliver the luxury state of mind.
Brand Pillars
The first step in the creation of any brand is to clearly define basic tennets and use these pillars as a lens to guide all marketing decisions. Brand founders should identify their brand’s positioning and ensure their story is compelling and relevant to a luxury consumer base, before investing too much time and money. It takes commitment to remain focused and stay true to this core essence, but it is an absolute that cannot be compromised – especially when dealing with luxury.
Distribution
Traditionally luxury brands have been linked exclusively to prestige and specialty retailers. There is a shift happening in our industry that introduces high-end offerings throughout all tiers of distribution. HATCHBEAUTY has embraced this movement and is excited to create brands that play to the top of a variety of retail environments while communicating the feeling of luxury within the space.
In 2012, we partnered with Costco Wholesale to create the Beauty’s Most Wanted initiative. A cornerstone of this program are our Beauty’s Most Wanted studios, a shop within a shop prestige beauty playground located within the warehouse space. This environment coupled with knowledgeable beauty advisors and eye-catching graphics and videos provide the platform that contributes to the client experience and luxury sensibility.
Assortment and Pricing
Typically luxury brands showcase a tightly curated assortment. It is important to marry the product mix and sku count to each retail environment making sure that the collection is refined yet still makes a statement amidst all brand offerings. It goes without saying that pricing needs to live at the top of the retail space – the luxury consumer understands and truly believes that when purchasing beauty you get what you pay for.
Formulation
No amount of elaborate packaging, prestige imagery or high profile endorsements can overcome poor formulation. Luxury products should aim to engage all the senses – hitting the mark with experiential textures, refined fragrances, unique sensorial elements and above all, high performance.
Packaging
Once you have a premium formulation, primary and secondary packaging needs to reflect the quality and craftsmanship of what’s inside. We’ve all stumbled across incredible product gems hidden within stock components, crooked labels and a DIY-feel. It is important to work packaging costs into the P & L to ensure that you have the means to construct a remarkable experience through custom packaging, delivery systems and artwork options.
Merchandising
The in store environment should be as compelling as the products placed among it. We pay close attention to merchandising concepts when we create products for launch, as this is our opportunity for direct communication with the client, especially within an open-sell, self-shop environment. Details to consider are the quality of display materials, compelling imagery selection, tone of written copy as well as strong logo identification. Dark colors, glossy or mirror finishes or metallic materials are go-to elements when presenting a luxury brand. The visual strategy should present the products like they are pieces of art, making them feel iconic.
E-Commerce
E-commerce and social media are important pillars of luxury branding that should not be overlooked. Investment in e-commerce and social media design, interface and ease of use are resources well spent. According to a 2013 At Kearney study, higher income beauty and personal care consumers are more likely to shop online contributing to the $7.2 billion spent last year on these items in the United States alone. Social media opens the window for consumers to strengthen an emotional connection with your brand. According to a 2013 Yahoo study, 64% of Twitter users and 51% of Facebook users are likely to buy the products of brands they follow online. For luxury brands, it is important to remain consistent with the elevated tone of brand voice.
In Store Experience
Once a product is launched to market, it is important, where assisted sales are the norm, to create the highest quality in-store experience. Highly educated, personable in-store beauty associates and store teams are brand ambassadors that should be equipped with the information that they need to deliver white glove customer service with both passion and knowledge.
Working with an approach that integrates the above from the outset helps to shape a brand that helps consumers relate to it in a high end way. While not easy, this thoughtful approach will ultimately lead the consumer to a luxury state of mind.
About the Author
Beauty entrepreneurs looking to develop prestige brands must remember that the luxury consumer is affluent, typically highly educated and incredibly informed. That means successful brands in this space must be credible, authentic, well researched and well managed in order to engage and keep this customer.
In order to evoke an enhanced sensibility, careful consideration should be paid to a variety of factors, which work together to ultimately deliver the luxury state of mind.
Brand Pillars
The first step in the creation of any brand is to clearly define basic tennets and use these pillars as a lens to guide all marketing decisions. Brand founders should identify their brand’s positioning and ensure their story is compelling and relevant to a luxury consumer base, before investing too much time and money. It takes commitment to remain focused and stay true to this core essence, but it is an absolute that cannot be compromised – especially when dealing with luxury.
Distribution
Traditionally luxury brands have been linked exclusively to prestige and specialty retailers. There is a shift happening in our industry that introduces high-end offerings throughout all tiers of distribution. HATCHBEAUTY has embraced this movement and is excited to create brands that play to the top of a variety of retail environments while communicating the feeling of luxury within the space.
In 2012, we partnered with Costco Wholesale to create the Beauty’s Most Wanted initiative. A cornerstone of this program are our Beauty’s Most Wanted studios, a shop within a shop prestige beauty playground located within the warehouse space. This environment coupled with knowledgeable beauty advisors and eye-catching graphics and videos provide the platform that contributes to the client experience and luxury sensibility.
Assortment and Pricing
Typically luxury brands showcase a tightly curated assortment. It is important to marry the product mix and sku count to each retail environment making sure that the collection is refined yet still makes a statement amidst all brand offerings. It goes without saying that pricing needs to live at the top of the retail space – the luxury consumer understands and truly believes that when purchasing beauty you get what you pay for.
Formulation
No amount of elaborate packaging, prestige imagery or high profile endorsements can overcome poor formulation. Luxury products should aim to engage all the senses – hitting the mark with experiential textures, refined fragrances, unique sensorial elements and above all, high performance.
Packaging
Once you have a premium formulation, primary and secondary packaging needs to reflect the quality and craftsmanship of what’s inside. We’ve all stumbled across incredible product gems hidden within stock components, crooked labels and a DIY-feel. It is important to work packaging costs into the P & L to ensure that you have the means to construct a remarkable experience through custom packaging, delivery systems and artwork options.
Merchandising
The in store environment should be as compelling as the products placed among it. We pay close attention to merchandising concepts when we create products for launch, as this is our opportunity for direct communication with the client, especially within an open-sell, self-shop environment. Details to consider are the quality of display materials, compelling imagery selection, tone of written copy as well as strong logo identification. Dark colors, glossy or mirror finishes or metallic materials are go-to elements when presenting a luxury brand. The visual strategy should present the products like they are pieces of art, making them feel iconic.
E-Commerce
E-commerce and social media are important pillars of luxury branding that should not be overlooked. Investment in e-commerce and social media design, interface and ease of use are resources well spent. According to a 2013 At Kearney study, higher income beauty and personal care consumers are more likely to shop online contributing to the $7.2 billion spent last year on these items in the United States alone. Social media opens the window for consumers to strengthen an emotional connection with your brand. According to a 2013 Yahoo study, 64% of Twitter users and 51% of Facebook users are likely to buy the products of brands they follow online. For luxury brands, it is important to remain consistent with the elevated tone of brand voice.
In Store Experience
Once a product is launched to market, it is important, where assisted sales are the norm, to create the highest quality in-store experience. Highly educated, personable in-store beauty associates and store teams are brand ambassadors that should be equipped with the information that they need to deliver white glove customer service with both passion and knowledge.
Working with an approach that integrates the above from the outset helps to shape a brand that helps consumers relate to it in a high end way. While not easy, this thoughtful approach will ultimately lead the consumer to a luxury state of mind.