An increasing numbers of luxury brands have been extending their market share downwards, into the “masstige” market
Gone are those days when luxury brands used to target a narrow and exclusive range of high-value costumers. To combat competition from the masstige brands, premium and luxury cosmetics players are coming up with various strategies to target the mass audience.
Below are the following ways how luxury beauty brands are reaching to a wide range of consumers.
Enhancing Brand Experience
Luxury and premium beauty brands are focusing on enhancing the brand experience to help distinguish their premium brands from masstige brands. The brand experience took the form of offering more customised solutions while increasing interaction with consumers both in-store and in the digital space.
Burberry recently dubbed Burberry World Live in its store. The store includes the world's tallest retail screen, 550 hidden speakers, screens which turn into mirrors when needed and a hydraulic stage for performances. It also features RFID microchips in some items of clothing which when worn, transform mirrors into screens showing how the clothes look on a catwalk. Thus, enhancing the customer experience with the use of digital products.
Premium players sought to develop a greater presence across the pricing spectrum, to make their products accessible to a wider range of consumers, with different levels of affordability.
Adapting to consumers “more careful spending”, premium players are creating offerings at lower prices by means of smaller packaging, broadening distribution channels and even cutting prices to make premium products more accessible to consumers.
For Instance, makeup product giant, MAC Cosmetics has recently launched “Little MAC”, which is a collection of their best-selling products in miniature sizes.
Expanding their presence in the digital world has now become a given among luxury players. Engaging consumers with easy, fun and convenient activities, and emphasising premium status with a lavish shopping experience has paid off for many players.
Premium beauty players have used the digital environment to convey story and style vividly via websites adorned with captivating imagery and rich media. Online virtual stores are growing in popularity, particularly amongst the new generation of consumers, as the virtual make-up simulators help consumers to choose the most suitable products without having to be physically present in stores.
The collaboration of brands like Estee Lauder, Clinique etc with the largest beauty e-commerce, Nykaa is typical examples of how luxury players are using websites to increase consumer awareness and drive purchasing.