How to Open a Luxury Department Store
Starting and owning a luxury department store is far different from operating a traditional store. It requires a strong marketing and advertising effort in order to attract and hold a picky and niche market.
Anyone wanting to open a luxury product store needs every help he can get. So here’s a basic guide that will tell you some ideas to consider before starting a luxury department store.
Starting and operating a luxury department store that carries world renowned brands and pricey items like Chloé, Louis Vuitton, and Cartier is a major and complex undertaking. It is different from operating a traditional store in that it is highly specialized to an elite market. Finding a market of “high-end product” lovers in is a feat enough. It should be a result of extensive and serious marketing study. Attracting such market to the store requires even more effort and keeping that market could feel like holding on to something elusive. As a whole a luxury item business requires non-traditional marketing and advertising strategy in order to click. In addition, such specialized business could prove very sensitive to many factors affecting it, like changes in economy, tastes, and trend.
So if you want to start a luxury store. Consider these items:
Be absolutely sure that your luxury items -- high-tech gadgets, apparel, cosmetics -- have a market in your chosen location. Most luxury shops are located in big cities where brand usually matters and more people have extra income to splurge on cutting-edge products. And market in this line of business does not mean something general.
Supply and Supplier:
Some luxury lines are entirely owned by the company. It does not allow retailers to distribute their products to impart the exclusivity factor that adds allure to the brand. Others let retailers do the distribution, allowing high prices to set it apart from run-of-the-mill items.
Know what items you can obtain and sell and what you cannot. You would most likely have to deal with brand distributors. And this is not something easy. Getting a business relationship with such dealers could require a reputation, prior business relationships and connection. It would help greatly if you have been in the same line of business for some time such that you already know your way around and they already know you too.
This speaks a lot and could do a lot. A luxury item department store is valued a great deal for the ambiance it provides and image it projects. A big part of the thrill in acquiring top of the line products is visiting and lounging on a posh department store.
This should not be elaborated. For all these classiness, you definitely need a lot of cash, particularly for inventories, and store enhancement.
A solid business plan is needed to acquire funding. It is also needed to enter into business relationships with suppliers.
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