Luxury brands want to identify a particular segment to which they'll advertise. You're less interested in reaching a wide audience. You're more interested in reaching the right audience members. These are the potential customers who will most identify with and are most apt to crave your brand.
2. Strength of Experience
Long ago, luxury brand marketing strategy relied on the identity that the brand strengthens or empowers. In other words, someone could feel good (or exceptional!) about themselves by using the brand. This is quickly going out of fashion. Today and tomorrow's luxury brands don't focus on strength of identity. They focus on strength of experience.
What is the experience that your brand can provide, and how is it different from the experiences others provide?
3. Meaning of Exclusivity
Exclusivity and rarity are still key in building the brand. Depending on where and to whom you're advertising, this may have shifted somewhat. In the U.S., ostentatious shows of wealth are generally more frowned upon than they once were. Today, you must connect exclusivity not just to a value in presentation, but to a value of personality.
For instance, a specific piece of diamond jewelry may not be as appealing for its perceived rarity as it is for the story it tells. Exclusivity in your product still matters, but what that exclusivity symbolizes is changing. Rarity today is less about a show of possession and more about an outward demonstration of personal choice.
4. Core of Value
Establish your products' values early and hold them. The work you do in advertising, communication, public relations, and placement all build value. Lowering a price 10% won't do as much as featuring images of a celebrity wearing, driving, or otherwise using and showing off your luxury brand.
Just as you find your niche segment to focus your advertising, become involved in what that niche segment enjoys. There's a reason Rolex is deeply involved in golf, tennis, and equestrian events – because that's where it's customers are. Find where your customers are, and become involved in those events and passions. That's how to build a luxury brand.