For consumers, buying luxury goods is a symbol of wealth. For luxury good companies, selling luxury goods is all about branding. They have to build good connections between the brands and wealth. What is wealth? It is the ownership of scarce resources in which the scarcity includes scarce raw materials, fine craftwork, fascinating advertisements or even noble history. Therefore, owning the luxury good creates a feeling of superiority for the wealthy consumers.

To effectively advertise a brand, creating a belief among people is possibly the most powerful method. De Beers is a successful example of diamond companies. It devised a slogan that “Diamonds are Forever”. It is this slogan that created a custom of wearing diamond rings for engagement. Since then, De Beers became a very popular diamond brand, which implies the promise of everlasting love.

Besides successful advertising, the stable supply of raw materials is a key resource for gemstone companies. Therefore, the company，which is able to guarantee a stable supply, has the advantage to consistently attract its customers. Gemfield is a gemstone seller who did very well in this aspect and achieved huge success due to its sufficient raw materials.

News Resource

Day, Peter. “The Art of Selling Luxury Goods.” BBC News. BBC, 24 Sept. 2013. Web. 08 Oct. 2013. <http://www.bbc.co.uk/news/business-24222483>.

Recently, the famous social network Twitter is strengthening its partnership with television content owners. In the effort of their cooperation, audience is able to watch television programs and then talk about them on Twitter.

Such a new strategy benefits both Twitter and TV program owners. Many commercials encourage viewers to twit about their content. Therefore, more people tend to talk about specific events on Twitter, which earns Twitter plenty of advertising revenue due to users’ activeness. At the same time, the television programs can raise a lot of awareness and gain more sponsorship for its increasing influence. In other words, social network and television content owners provide a partners channel for each other so that they can expand their benefit from the partner’s strength.

Besides that, the two platforms can share the database of customers in order to perform better services. For example, television content owners can collect customers’ personal information through Twitter and Twitter can launch more TV-related activities that users largely favour according to collected data. In conclusion, the cooperation between social network and television content owners is a new method to expand mutual benefits.

News Resource

 “Twitter Exploring TV-related Advertising Ahead of IPO.” CBCnews. CBC/Radio Canada, 7 Oct. 2013. Web. 07 Oct. 2013. <http://www.cbc.ca/news/business/twitter-exploring-tv-related-advertising-ahead-of-ipo-1.1928356>.

Martha Tilaar started her cosmetics business in 1996. After a series of struggles, she has built up her own beauty industry with 4,500 employees. As far as I am concerned, the key component of her success is the right positioning of her brand. As Tilaar described, to challenge the mindset among modern Indonesians ’that foreign cosmetics were the best, she decided to produce Indonesian cosmetics that fit tropical skins better. Through the years, she consistently positioned her products as the true Indonesian cosmetics, which is made from traditional natural ingredients for Indonesian skins such as turmeric, clove flower buds or rice powder. The power of tradition and the profit of using natural ingredients helped Tilaar gain more and more customers and enabled her to expand her cosmetics country. Therefore, “natural” is the label of Tilaar’s comestics. According to this position, Tilaar launched a series of advertisements with models dressing in traditional Indonesian clothes and wearing matching makeups. Besides that, typical Indonesian patterns are designed on the appearances of products.

Similar in China and Korea, brands like Inoherb and SkinFood sell very well . They positioned themselves as skin care products made of Chinese herb and natural foods respectively.

Reference:

“My Business: Indonesia’s Beauty Magnate.” BBC News. BBC, 10 Sept. 2013. Web. 07 Oct. 2013. <http://www.bbc.co.uk/news/business-23960325>.