Do not Be Left out in the Digital Transformation in Luxury Brand Marketing
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Nearly every industry across the board, from banking retail, real estate, to automobile, have suffered debilitating cuts in their trajectory growth due to the 2008 financial crisis. However, one did exceptionally well beyond expectation.
Contrary to your expectation, the luxury goods do not see gray days during the financial crisis period. Thanks to the steady transformation that the market has been experiencing.
- Customers Changing
An excellent luxury goods customer used to be middle-aged, old-money, and bourgeois. While nowadays, there is a massive shift in this term of who the customer is. Besides, the numbers of its customers have tripled the number in the last twenty years. In 2013, 330 million customers stood, and one-third of the populations come from developing countries, with 50 million of it from china.
In 2015, the world’s largest consumer of these goods are from China. While its customers are well informed and do not care about the distance to have a great deal.
- Change In Media Consumption Patterns
The Luxury brand marketing formerly bears in mind massive fashion trends in upmarket events, magazines, or celebrity endorse hired to boost the brand’s sales with their charisma. Although the market was once dominated by in-store advertisement, print, and event marketing, the brand consumers have gone digital.
According to a study conducted by McKinsey, 20 percent of its sales are influenced by digital media. At least 70 percent of its customers use a smartphone. Thereby create new platforms to reach those goods. More than half of its customers use the internet service to conduct product research, locate a local store, and find out the lowest prices before going to purchase such good in the store.
In 2013, $22 million from the top five spent used search marketing of Google AdWords. While in the past, when Leonardo DiCaprio endorsed Tag Hever watches as a brand to go for. However, today, more than 55 percent of the buzz about the purchase of the goods is from a customer’s network of friends with acquaintances of social media.
- New Competition
Till a few years back, there were many European brands such as Chanel, Prada, Louis Vuitton, and Armani that defined luxury. These brands were the gold standard upon which the rest brands were weighed. The old brands are losing their position in the brands’ pantheon. Thus, the challenge has increased by niche brands that provide style, exclusivity, and breathtaking sometimes at a lower price range. Hence, these new brands come under two categories.
The first category, they give existing goods sellers with low marketing strategy the same heritage, opulence, and style offered by old brands. For example, President Obama favorite Italian shoe brand, Silvano Lattanzi does not have high global marketing campaigns. This brand shoe does not have a logo. However, they spend months on each shoe handcrafting it. They also imprint the customer’s name on each pair, once the minimum number of purchase has been reached.
The other category, local brands, are gaining traction. Bree, a prominence German bag maker, and Shanghai Tang, international clothing that rose from Hong Kong’s business district, points to the fact that loyalties have shifted toward the local brand.
- The Way Forward
A good brand must go to where its customers are. If you need to move your brand online to social media or mobile. Then do it. The primary element of this marketing is that you keep your brand exclusive and aspirational. Employ the right platform on digital by using the following a well-designed website, email marketing, social media invitation, one-on-one customer care, and many more.
Invest your entire team in the ‘go digital’ initiative. Assign work that will be performed by each team with targets and stay at the top of all the projects with team collaboration tools like WorkZone.
Do not employ the old ways. Evolve this new generation that has much information at their fingertips. Thus, reschedule your plans from scratch and sell fresh.