Luxury brands are synonymous with exclusivity, quality, and prestige. They’ve cultivated an aura of rarity and opulence that sets them apart from other brands. While traditional advertising channels have been favored by luxury brands, the partnership channel presents a unique opportunity to reach new audiences and drive sales by maximizing awareness for the luxury brand.
The nature of the partnership channel’s pay-for-performance model mitigates risk and allows brands to work with partners outside of their reach and inside paid media channels. And with US personal luxury retail sales on the rise (growing 6.7% in 2023, according to eMarketer’s forecast) there’s plenty of opportunity for brands in the space to cash in. While there’s a perception that economic turbulence and uncertainty may turn would-be spendthrifts off, eMarketer data also supports that for luxury brands, ecommerce presents double the growth opportunity versus non-ecommerce growth opportunities.
How luxury brands can lean into partnerships to increase sales, reach, and tap audiences willing to spend
First, a brand should identify and establish partnership goals. Are you looking to increase traffic, revenues, conversion rate, or average order value? Perhaps you’re just looking to increase brand recognition in emerging markets. No matter what your goals are, finding the right partners to help you reach them is non-negotiable. Luxury brands, in particular, need to be selective about their partners to ensure that their products are being promoted to the right audience. You’ll want to look for partners with a similar target market as your brand and possess a high level of credibility and authority in their niche. For example, a perfect match for a luxury watch brand would be a partner with a strong following of watch enthusiasts and a track record of promoting high-quality, luxury products.
But perhaps nothing is more important than diversifying partner types to ensure a brand is accessible to consumers at every stage of their journey. This means luxury brands would do well to lean into content partners that can introduce their brand to a wider audience and create awareness while continuing to curate rich stories all the way down the purchase funnel. An ideal partner would also create long tailwinds by building on brand affinity. At the same time, luxury brands can leverage partners that are able to offer exclusive discounts and special promotions to help incentivize a purchase, while being mindful to not dilute the brand’s image or devalue its products.
Luxury brands should also ensure their partnership program is aligned with their overall marketing strategy to ensure consistent brand messaging across all channels, including the affiliate marketing channel. Likewise, it’s important for a luxury brand to embrace the right partnership management platform to track and measure program performance to determine if they’re driving the desired results based on their goals.
Want to learn more about how luxury brands are embracing the partnership channel for short- and long-term wins? Download Partnerize's case study, featuring Mitchell Gold + Bob Williams, today.
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