THE LUXURY INDUSTRY IS LIVING THROUGH DIFFERENT CHANGES, BOTH IN PERCEPTION, CUSTOMER RELATIONSHIPS, AND TECHNOLOGY.
While luxury was once seen as “showcasing consumption”, societal changes, heightened awareness and sensitivity have meant that the luxury industry has gradually shifted towards more conscious and refined consumption. In the upper echelons of society, but at all levels, environmental, social and ethical issues have made their way into brands, leading them to embrace and often share some of these aspects with their customers. This has allowed it to establish a deeper connection with its consumers, also exploiting the phenomenon of niches.
For you, the 6 marketing trends that digital innovators are adopting to promote luxury for years to come:
1. DATA ALSO DOMINATES IN LUXURY
Turn data into information and information into action. As many say, data enables businesses to reduce risk and take the right path to connecting with consumers. In luxury goods today, data translates into personalization. Personalization has the power to trigger a mechanism of reciprocity between the brand and the customer, the latter becoming an active party. A direct relationship in constant expansion. Brands like Tommy Hilfiger are using AI as a springboard for their creative processes, for example. Indeed, thanks to these technologies, they are able to research the trends of the moment in real time, and to assess the perception of a customer vis-à-vis a specific product or the same brand. In this case, machine learning analyzes previous data, to perform detailed predictive analyzes on which products have been most successful against trends, to provide designers with a complete picture on which to innovate while minimizing risk.
2. RELEVANT INFLUENCERS OFTEN BECOME TRADEMARKS
The rise of influencers in the luxury industry is changing. A bona fide personality is known to be more persuasive and foster brand loyalty by building a community of followers. In recent years, we’ve seen a wave of influencers take advantage of their followers by launching new brands that are totally aligned with their personality. Chiara Ferragni with her fashion and luxury brand, Jeanne Damas with the launch of Red or Elle Macpherson with the launch of her beauty brand WelleCo, are three different examples of influence who have harnessed the power of their subscribers to create new businesses.
Building a virtual community with your target audience can help you achieve higher levels of loyalty and loyalty, and hence improve conversion rates.
3. FROM SOCIAL REFUSAL TO CONSENT
As mentioned above, creating a virtual community has become essential to increase brand loyalty, and it is evident that these communities are linked to social channels. For luxury consumers, social media is a key tool in finding like-minded people and brands with strong identities.
According to a statistic produced by Havas LuxHub, new luxury brands were discovered through social channels, with 42% of interviewees aged 18 to 26. As the younger generations grow older, this percentage increases more and more.
Many years have passed since luxury brands stayed away from social media … And now that consumers expect increasingly immediate and personalized gratification, luxury farms have had to reinvent themselves. . obtaining astonishing results, in particular withThe advertisement.
4. GEN-Z BUILDS LUXURY.
Big brands are experimenting with transforming their stores into highly digitized showrooms, focused on their brand storytelling to satisfy Generation Z consumers. In this new market where content is part of value, some brands are introducing models of online engagement linked. In physical spaces, such as certain privileged subscriptions to be spent online only for those who physically go to a store.
Large online shopping portals like Amazon are using technological advances in augmented reality (AR) and virtual reality (VR) to create new models with which consumers approach products, changing the buying funnel, in order to involve GEN-Z above all.
Generation Z therefore influences the entire luxury sector, to such an extent that according to behavioral analyzes of this target, they are much less loyal to brands, being more influenced by social media. Personalization, the online experience and the convenience of fast delivery times are the main levers for this target.
While most Gen Z shopping activity takes place online, some people still want to visit a store before making a purchase. The latter are above all interested in evaluating all the contextual information surrounding a product.
Triggers to consider also include blog reviews, influencer recommendations, comparisons, and customer feedback. Gen Z loves an interactive and personalized approach focused on authentic and original brand stories.
5. STRONG EMOTIONS, BUT LINKED TO THE CONCRETE.
Luxury brands are aware that their range of users is increasingly sensitive to social and environmental issues, especially for those seeking the involvement of younger groups. Getting the customer’s emotions moving is not a big novelty in advertising or marketing, or more generally in business. The difference is that today consumers are much faster and more concrete, and they quickly assess whether the actions are an end in themselves or push for a real and rapid improvement, such as a contribution to a local community (see schools). or sustainability processes in the production chain. They want to be involved in a unique, changing, personalized and direct experience. The relationship between the brand and the consumer must therefore go beyond the product, and create a feeling of concrete finality that contextualizes the purchase made.
6. BLOCKCHAIN, QUALIFIED TRACKING FOR BEST PERFORMANCE.
The potential of blockchain is essentially to bring transparency and greater efficiency to the sector. In the case of valuable materials, tracking all phases from mining to sale can help improve tracking, quality, and overcome some issues with multiple processes.
Blockchain can also help the luxury industry achieve strong transparency for the benefit of the consumer, forcing stakeholders to be ethical at all points of the supply chain, from sourcing to production to delivery. final. Consumers are increasingly interested in production models and this technology ultimately allows them to verify the origin and the entire supply chain of the product. London-based Everledger is already using IBM’s blockchain technology to trace a diamond through every step of the supply chain.
WE LEAVE THE LINES BETWEEN INNOVATION AND LUXURY.
The luxury sector is evolving by exploiting social, economic and technological changes. The speed with which digital is gradually accelerating is changing scenarios, charting new trends and creating new business opportunities for the entire sector. These 6 pillars will be the foundations on which strategy in the years to come.