Four essential marketing trends to stay relevant in the luxury industry
The ongoing pandemic has had a devastating effect on world economies and has adversely impacted customer sentiments. There has been a profound change globally in the way we live, in what we buy, and the things we perceive as “valuable”. It has fundamentally changed the meaning of “necessities” and luxuries” for consumers. In fact, being safe and healthy at home spells luxury today.
Adapting to the ‘new normal’
The pandemic has altered purchasing behavior in a manner that is unprecedented and almost irreversible. This has amply been reflected in what customers bought and how they have shopped in the last 18 months. The initial days of the coronavirus saw most people scrambling for basic groceries, toilet paper, masks, sanitizers, and the like. Demand for health and wellness products, office furniture, and work from home essentials witnessed a steep surge while that for travel and luxury products saw a massive dip.
But as they say in adversity lies opportunities and historically pandemics have always taught us to break the past and restart afresh. Just like every sector of the economy, luxury brands have had to alter their business strategies, change supply chain logistics and modify operations. Many brands have shut down their physical shops and have moved online. While the luxury market continues to be threatened by the resurgence of the virus, here are a few important marketing trends that are crucial for companies to stay relevant in the industry. Needless to mention, the strategies will vary per the unique requirements of the brands and will continue to evolve as the situation demands.
Acceleration of digitization
While virtual shopping is the norm, the new normal has stepped up the pace of the adoption of online technologies and tools to strengthen customer relationships. Voice search, search engine optimization, webinars, and podcasts are increasingly being used in digital marketing strategies. The use of social media platforms like Instagram, Pinterest and teleconferencing apps to facilitate customer interaction and replicate the traditional in-store experience has been on the rise and is expected to be critical in helping brands stay relevant. Ease of use, accessibility, reliability, data privacy, and security are non-negotiable. It is the responsibility of the brand to assure customers of these aspects in order to win their confidence.
Personalization and Multisensorial experiences
Improved communication and the ability to engage customers at a personal level go a long way in reinforcing brand loyalty. It is key to note that the new luxury buyers are younger than ever before and are increasingly more diverse, inclusive, and international. Also, the luxury e-commerce demographics show that the ratio of female shoppers to males is 53.4% to 46.6%. Brands need to understand that this segment continuously engages in online content and expects superior digital experiences. Being digitally savvy, they value the entire experience rather than just purchasing goods. The use of tools like augmented reality and multimedia for product demos is significant and will help boost engagement. Customized interactions at touch points help create value which ultimately translates into increased online sales.
Convenience is the key
While using technology to enhance the online experience is mandatory, the importance of preserving the element of “human connection” cannot be undermined. Facetime or Skype calls for personal interactions, video calls for personalized demonstrations, and calls with technicians or product experts for specific clarifications go a long way in instilling customer confidence. Providing customers exclusive advantages like free deliveries, extended warranties and service can further strengthen brand-customer relationships.
Responsible luxury
Customers today, especially the younger segment, support brands that are committed to making a positive impact by following the principles of sustainability, inclusion, diversity, and ethical business practices. Brands that empower the local community, address urgent public issues, and are passionate about the cause of the environment are known to garner support from customers. A recent survey by McKinsey showed that almost 67% of consumers consider the use of sustainable materials as a key purchasing factor. The marketing plan must focus on and effectively communicate these core values. This is likely to resonate with customers who are passionate about conscious luxury resulting in increased brand loyalty.
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About the author:
Anshuman Singh, Creative Founder, Paul Adams