Statistics show the global luxury products market will grow by a CAGR of 3.75. Increased wealth and income among the affluent members of society are some factors fueling the growth.
If you are looking for an eCommerce business opportunity, consider starting a luxury brand and selling online. You can sell fashion and accessories online or set up a store locally, targeting the affluent class in your locality.
Starting a luxury brand requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell luxury products, or selling luxury products online, you can use this page as a guide for everything you'll need to know.
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$0||$7,000|
|Advertising & Marketing Costs||$0||$2,450|
|Total Startup Costs||$513||$27,209|
|Global Brands Magazine||globalbrandsmagazine.com||#14,948|
|Chrysler Official Site||chrysler.com||#25,644|
|The Luxury Closet||theluxurycloset.com||#36,609|
|Compagnie Financière Richemont SA||richemont.com||#44,226|
|Global Brand Pvt. Ltd.||globalbrand.com.bd||#56,960|
Pros & Cons
|Flexibility||You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.|
|Ability to start your business from home||It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!|
|Little startup costs required||The cost to start a luxury brand costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.|
|Rewarding work||Starting a luxury brand can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.|
|Scalable||With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.|
|Traffic to your website||A luxury brand gives people a reason to visit your website and to keep coming back to you!|
|Crowded Space||Competition is high when it comes to your luxury brand, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.|
|Finding The Right Supplier||Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.|
|Security Issues||With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.|
|Lack of benefits||With a luxury brand, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.|
|Isolation||Often times, as a luxury brand, you typically work alone and do not have much face-to-face interaction with other team members.|
|Taxes||As a luxury brand, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.|
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
Social Media Advertising
Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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