The makers of luxury brands in the areas of liquor, watches, high-fashion, perfume, and cosmetics traditionally use luxury pricing to present the concept of exclusivity. This was accomplished by inflating prices and limiting the availability of certain luxury products. Due to the advent of new companies offering new luxury products, relying on traditional marketing strategies is risky. Any brand that does so risks becoming irrelevant or what is even worse, becoming ordinary.
New marketing strategies are being introduced. These strategies include exclusive sponsorship of events and activities associated with the rich and famous, and luxury product differentiation. The agenda is to make affluent customers aware of just how exclusive one luxury product is when compared to another product.
Sponsorship of exclusive events is considered one of the best ways to convey the desired image. The new rich in emerging markets love to attend exclusive events attended by others of their economic level. A restricted list of guests serves to augment the glamour. Glamour heightens the sense of privilege. The presence of famous celebrities enhances the feeling of exclusivity.