Picture the scene: it’s 3 AM on Black Friday, and crowds gather outside department stores nationwide. The air crackles with anticipation as shoppers prepare their annual assault on bargains and deals. But while mass-market retailers rub their hands with glee, luxury brand managers sit in their offices, pondering a thorny question every year: “Should we join the Black Friday fray?”
We’re asked this question with increasing frequency at Woven, and it deserves careful consideration. After all, can luxury brands afford to sit on the sidelines in a world where even premium car manufacturers and haute couture houses are tempted by the siren song of Black Friday sales?
The Psychology of Luxury: Why Discounting Disrupts Desire
Let’s begin with a truth that lies at the heart of luxury marketing: desire isn’t rational. When someone pays £5,000 for a handbag or £10,000 for a watch, they’re not making a purely logical decision based on materials and craftsmanship. They’re buying into something far more profound—a story, a feeling, a place in a carefully curated world where price tags are markers of exclusivity rather than barriers to purchase.
Think about the last time you encountered something truly luxurious. Perhaps it was stepping into a Bentley showroom or trying on a Patek Philippe watch. That flutter in your stomach? That’s not just excitement—it’s desire meeting exclusivity in perfect harmony. Now imagine seeing that same watch with a 40% off sticker. Something shifts in your perception, doesn’t it?
The Dangerous Dance of Discount Culture
We’ve seen it happen time and again. A luxury brand, perhaps facing pressure from shareholders or witnessing competitors’ Black Friday success, dips its toe into the discount waters. “Just this once,” they say. “Just for our most exclusive customers.”
But here’s what typically unfolds:
The First Year
The initial foray often seems successful. Sales spike, new customers flood in, and the finance department celebrates. The promotion is carefully orchestrated—private, digital-only perhaps, or masked as a “special client appreciation event.”
The Second Year
Customers who bought last year are now waiting for this year’s sale. The brand must decide: disappoint these customers or repeat the promotion. Meanwhile, full-price sales in the weeks leading up to Black Friday have mysteriously declined.
The Third Year
The brand is now unofficially expected to participate. Customers have been trained to wait for discounts, and the premium positioning that took decades to build has begun to erode. This slippery slope has claimed more than a few premium brands in its time.
The Art of Alternative Value Creation
But this doesn’t mean luxury brands should simply ignore Black Friday. Instead, we advocate for a more sophisticated approach that adds value without slashing prices. Here’s how some of our most successful luxury clients navigate this period:
The Limited Edition Strategy
How about launching a unique “Black Friday” collection? Instead of discounting, offer one-of-a-kind models with unique features that are available only during this period. The result might be the highest-grossing weekend of the year, with no mention of discounts.
The Experience Enhancement
Another idea might be to offer complementary bespoke styling sessions and extended warranties—maintaining price integrity while delivering additional value to customers.
The Exclusivity Play
Or perhaps transform Black Friday into an invitation-only preview of your upcoming collection. Target your most valued customers to receive private viewings, creating a sense of privilege rather than discount-hunting.
When Participation Might Make Sense
Of course, there are scenarios where limited Black Friday participation could be strategic. The key lies in execution and context:
The Outlet Strategy
Luxury brands with dedicated outlet channels can participate without compromising their mainline positioning. But even here, careful curation is crucial. One of our clients operates a successful outlet program that feels more like accessing an exclusive archive than hunting for bargains.
The Collection Retirement
Some brands use Black Friday to gracefully retire past collections through private, invitation-only events. When handled properly, this can enhance exclusivity while managing inventory.
The Digital Discretion
When executed thoughtfully, digital-only promotions can provide a controlled environment for limited discounting that doesn’t impact in-store experience or brand perception.
Making the Strategic Choice
For luxury brands contemplating Black Friday participation, we recommend a thorough evaluation based on these key considerations:
- Brand Architecture: Does your brand structure allow for promotional activity without compromising core luxury positioning?
- Customer Journey: How will participation (or non-participation) impact different customer segments’ perceptions and behaviour?
- Long-term Value: What’s the true cost-benefit analysis when brand equity is factored in?
- Alternative Approaches: Could you achieve your objectives through value-addition rather than discounting?
The Art of Standing Apart
Sometimes, a luxury brand’s most potent Black Friday statement is choosing not to participate. We’ve seen brands successfully counter-program during this period, reinforcing their luxury positioning while others chase short-term gains.
Consider the luxury jewellery house that chose Black Friday to launch their most expensive collection yet or the premium car manufacturer that used the day to announce a limited edition model with an even higher price point than usual. These brands understood that in luxury, exclusivity is currency.
The Path Forward
The true art of luxury brand management lies not in following trends but in setting them. As we advise our clients to navigate the Black Friday challenge, we encourage them to think beyond the immediate opportunity and consider the long-term narrative they’re creating.
For some, this might mean elegant abstention. For others, it could involve reimagining what a shopping event can be. But for all, it means staying true to the fundamental principles that make luxury brands desirable in the first place.
After all, in the words of one of our luxury clients: “We’re not in the business of selling products—we’re in the business of crafting dreams.” And dreams, as we all know, rarely come with a discount tag.
Want us to help you create your perfect strategy? Get in touch.