A luxury product is a high-end item known for its premium quality, exclusivity, and high price.

These products stand out for their superior materials and craftsmanship, providing not just utility but a sense of status.

Luxury goods are often used synonymously with superior goods including high-end clothing and accessories, cosmetics, cars, and estates, to name a few.

Absolutely! In the market for luxury goods lies a big opportunity to make more profit. The latest statistics report the following digits:

• The luxury goods market now counts US$368.90bn.
• It’s anticipated to grow by 3.22% annually in the period between 2024-2028.
• The largest segment of the market is Luxury Fashion with a revenue of US$115.90bn as of 2024.
• By the end of 2024, up to 15% of the total profit is projected to be generated via online sales.

This data puts luxury products, especially fashion ones, in a superior position as compared to low-cost merchandise and it’s the reason why many store owners are looking into the solution of switching to selling luxury items.

Fashion items often boast some of the best resale values.

Designer dresses, handbags shoes, and jewelry, especially those from iconic fashion brands like Versace, Burberry, Dolce & Gabbana, Jimmy Choo, Prada, and Gucci, hold their value exceptionally well.

These items are not only sought after but can even appreciate in value over time, especially limited-edition or vintage pieces.

The reason? They’re crafted with high-quality materials, have a strong brand reputation, and are often in high demand among collectors and fashion enthusiasts. This makes them a smart investment for those looking to make a profit from resale.

Here’s why making the move to luxury goods can be a game changer for your business:

• Higher profit margins: Luxury products typically offer higher profit margins compared to everyday items. Customers are willing to pay a premium for high-quality, exclusive products, allowing you to earn more per sale.
• Exclusive market: Selling luxury products lets you tap into an exclusive market, giving your brand a premium edge.
• Brand prestige: Offering high-end merchandise enhances your store’s reputation, making it a go-to destination for customers seeking top-tier fashion.
• Increased customer Loyalty: Offering luxury products can build strong customer loyalty. Buyers of high-end items often become repeat customers who value quality and exclusivity, leading to steady sales and long-term relationships.
• Opportunities for cross-selling: Luxury items often come with opportunities for cross-selling. Once customers are engaged with your high-end offerings, they may be more likely to purchase additional premium items or accessories.
• Better investment potential: Many luxury goods appreciate in value over time. This not only benefits your business through higher resale value but also provides customers with a sense of investing in something that could potentially increase in worth.

To give you a heads up, in the following sections, we’ll break down the essentials necessary to start selling fashion luxury goods.

To launch a clothing store specializing in luxury goods, the initial step is to set up your store, whether online or offline. It can be anything from a no-inventory online clothing store to a pop-up shop.

For an online store, there are numerous user-friendly eCommerce platforms available that make setting up your boutique quick and easy.

To choose the best platform for your needs, consider our comprehensive guides on creating an eCommerce store using top web-building solutions such as:

• Shopify
• Shift4Shop
• Wix
• BigCommerce
• WordPress (via WooCommerce plugin)

For offline stores, ensure you select a retail location that aligns with your target market and invest in a store design that reflects the luxury brand image you want to project.

After establishing your store, an important question arises – To whom will you sell your luxury goods?

People with refined taste in clothing, knowing what to buy and wear, will definitely be interested in your store.

For both Europe and North America, customers between 18 and 39 years were the biggest age group with luxury fashion purchases, with 66.7% in Europe and 85% in North America.

People of these ages often spend a lot on designer clothes because of their high income and pension as well as higher social status. Therefore, targeting these customers should be one of the main audiences you’ll want to sell your products to.

Finding suppliers for your business with a good reputation is not a simple task. But once you spot them and make a deal with one, you’ll start noticing their positive influence on your business.

To give you a rough idea of what a good supplier should offer you, here are a few features to take into account:

• Evaluate the supplier’s catalog: Ensure the supplier offers a diverse selection of luxury products. A broad catalog allows you to offer more choices to your customers and adapt to changing trends.
• Evaluate shipping: Opt for a supplier with a reputation for punctual delivery.
• Check their customer support: Opt for suppliers with excellent customer support. They should be responsive, helpful, and capable of addressing any issues promptly.
• Easy integration: If you’re starting a dropshipping clothing business, look for suppliers that offer seamless integration with your eCommerce platform. This includes automated inventory updates, order processing, and tracking features.
• Go through their product prices: Competitive pricing is essential for maintaining healthy profit margins.
• Look for limitations of minimum order quantities: Review the supplier’s minimum order requirements and ensure they align with your business’s budget.
• Check reputation: Seek out suppliers with a strong standing in the luxury fashion sector. Investigate their history, read customer reviews, and request references from other businesses.

Regardless if you’re planning on opening an online store or a classic brick-and-mortar shop, as a luxury clothing supplier, BrandsGateway offers both dropshipping and wholesale services.

MAIN FEATURES

Here’s a table summarizing the features of BrandsGateway’s dropshipping and wholesale services for starting an eCommerce or retail business:

How to start selling with BrandsGateway?

Starting a business with BrandsGateway requires a super simple process:

• STEP 1: Go to https://app.brandsgateway.com/login/.
• STEP 2: Create an account.
• STEP 3: Start placing your order.

Here are a few social media hacks and a bunch of other general marketing strategies on how to advertise your store in the best way possible.

It’s a known fact that people love visual content more than text.

Especially when selling clothing, your potential customers need to see your products, not just a product description.

That’s why the demand for visual social media platforms has become quite high.

Instagram

As of 2024, Instagram is one of the most popular social media channels worldwide, projected to reach 1.4 billion monthly active users this year.

With this number of users, online store owners like yourself can manage to do tons of promoting on the platform, whether it’s via organic or paid advertising.

Here are different ways you can build an Instagram marketing strategy:

• Instagram ads

Instagram ads are beneficial because they can target potential customers by using lookalike audiences that help you reach a new audience of people who are similar to customers you care about.

All ads can be created via the Meta Ads Manager. Then you can run them on both Instagram and Facebook.

What’s more, Instagram ads are quite affordable as well. They can cost as low as $1 per day, meaning you can still make things work even if you have a limited budget.

• Instagram shopping

If you choose to use Instagram to promote your luxury goods, you can set up your product feed and then enable settings for Instagram shopping.

This way, you’ll be able to post a product with a price tag and a link to your website where it can be purchased.

• Instagram stories and posts

If you prefer to stick to organic traffic, you can post different types of content including Instagram stories, image posts, and videos to showcase new arrivals and announce special sales and discounts.

TikTok

TikTok has quickly become a powerhouse in social media marketing, boasting a massive audience of over 1 billion monthly active users as of 2024.

This platform’s unique algorithm and emphasis on short, engaging videos make it a prime venue for showcasing luxury items in a fresh and dynamic way.

Here’s how you can leverage TikTok to promote your luxury goods:

• TikTok ads

With options such as In-Feed Ads, TopView Ads, and Branded Hashtag Challenges, you can engage users in creative ways. TikTok’s self-serve ad platform allows you to set precise targeting criteria and budget, making it an accessible choice for businesses of all sizes.

• Influencer collaborations

Partner with TikTok influencers who align with your brand’s aesthetics and values. These influencers can create authentic content that highlights your luxury products, leveraging their follower base to drive awareness and engagement.

You can even create a digital business card, where you can add offers and information about your luxury business, and ask these influencers to share it with their audience. It’s a quick way to grab some eyeballs for your luxury brand.

• Creative content

Take advantage of TikTok’s viral trends and challenges by creating content that resonates with current trends while showcasing your luxury items.

Engaging videos, behind-the-scenes looks, and user-generated content can enhance your brand’s visibility and appeal.

Check out: How to create TikTok ads?

Facebook

Facebook remains a major player in social media marketing as well, with over 3 billion monthly active users globally.

Its extensive advertising features and diverse user base provide a valuable platform for reaching potential customers.

Here’s how you can effectively use Facebook to market your luxury products:

• Facebook ads

Facebook offers sophisticated ad targeting that enables you to reach precise audiences based on their interests, behaviors, and demographics. You can use diverse ad formats, including carousel ads, video ads, and slideshow ads, to showcase various features of your luxury products.

• Facebook shop

Similar to Instagram, you can also set up a Facebook Shop which will allow your customers to browse and purchase your luxury items without leaving the platform.

Check out: How to create Facebook ads?

Pinterest

Pinterest is another popular social media platform that, as of 2024, has registered over 500 million monthly active users worldwide, as stated by Statista.

What makes Pinterest ideal for advertising is the fact that it’s full of visual content only, perfect for showing off your luxury products. As already familiar, the main feature of the platform is that it allows people to pin content that has captured their attention as they go through their feeds.

When pinning these visuals, many Pinterest users have the intention of buying such products which opens up a window of opportunity for you as a seller to identify them. They usually pin what they’re interested in for future reference, which makes this platform the most ideal for getting front-end store visitors.

Check out: How to create Pinterest ads?

One way to increase sales while selling luxury goods is to take care of the old customers you already have. A sense of community is present when old customers merge with the new ones.

You can include coupons with the purchase. You can also have a customer loyalty program, for example, in the form of a membership card.

This card gives customers discounts, a gift with a membership card for a certain amount of purchases, birthday gifts, or an exclusive offer if they recruit another member.

If you target customers globally, then know this – certain countries stand out from the rest, and it’s not just the U.S. There are numerous countries to target when selling branded clothes.

Of course, you’ll need to check with your local delivery services first. Other than that, if you’re targeting U.S. audiences only, there’s much to learn about the country’s most prosperous cities.

This way, you’ll be more precise about who you want to become your new customer.

Email marketing remains one of the most effective channels for driving sales and maintaining customer relationships.

Create targeted email campaigns featuring new arrivals, exclusive offers, and personalized recommendations.

On top of that, make sure you customize your messages using segmentation to align with customer behavior and preferences.

Search engine optimization (SEO) is crucial for driving organic traffic to your online store.

Optimize your website content with relevant keywords related to luxury goods and fashion.

Ensure that product descriptions are detailed and unique, and use high-quality images with appropriate alt text.

Building backlinks from reputable fashion and lifestyle blogs can also improve your search engine rankings and attract more potential buyers.

Starting a luxury fashion business online or offline can be incredibly rewarding, especially with the right products and suppliers.

By focusing on selling high-quality products, you can set your store apart in the competitive fashion market.

BrandsGateway offers everything you need to succeed, from a diverse range of products to seamless integration and robust support.

Whether you choose dropshipping or wholesale, their services and resources can help you build a successful, profitable business.

So embrace these opportunities and start increasing your profits today.