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>.