Luxury branding first emerged during the 1920s; now over 100 years later, there has been a vast number of advancements in the world that have elevated this market. One is social media, which, within 20 years, has changed the way the world presents brands. These digital marketing techniques are targeted for all generations, but many new strategies catch the eye of Millennials and Generation Z. These younger generations have a major focus on technology and utilize it when shopping, but many luxury brands rely on in-store sales, which poses the question: how will brands stay relevant if their main marketing strategies are not evolving with new generations? It is essential for them to figure out how to market their brand in the digital age while still maintaining their prestige.
In this article, we’ll explore five ways brands are placing an emphasis on brand and luxury digital marketing experiences to keep up with the future.
Before we begin, let’s define what it means to be a luxury brand. A luxury brand is normally characterized as being exclusive, high-quality, and typically comes with a big price tag. They have acquired a sense of rarity that sets them apart from the competition of regular brands. Individuals will go out of their way to witness the luxury brand shopping experience.
Luxury Brand Marketing: 5 Ways to Capture the Attention of a Younger Demographic
1. Capitalize on Personalization
Along with their quality, luxury brands exceed other retail brands due to their superb customer service and exclusivity. They should not limit their services to only in-store experiences anymore. Companies can activate online tools such as one-on-one video consultations, virtual non-fungible tokens (NFTs), and they can utilize their CRM software to create curated content for each customer. For example, in London, Burberry and Mulberry are a couple examples of brands that give customers the option of signing up for a digital consultation with the companies’ sales associate teams to discuss what items are best for each individual’s style. Louis Vuitton also has activated a live streaming strategy to display their brand to customers, giving them the option to purchase the products on their website. This marketing streaming method makes it easier for customers to view the brand and leave comments, making them feel closer to the company.
2. Embrace New Technology
Younger generations are growing up with technology and will continue to use it for the rest of their lives. According to Mediaboom, over 88% of Millennials and 89% of Gen Z uses social media daily, and they will account for 55% to 65% of total personal luxury spending by 2025 globally. Some luxury brands have attempted to evolve their marketing strategies to be visible to these significant generations by implementing digital IDs, which are “product passports” that store information for product traceability, authentication, and post-sale data collection. Another luxury digital marketing tactic is investing in virtual reality and augmented reality since it is projected to add between $150 billion to $275 billion to the fashion industry over the next three to five years. Chanel, Dior, and Gucci have all experimented with AR for different try-on campaigns by utilizing Snapchat and Instagram filters, as well as their own virtual reality features for their various items. Lastly, luxury brands are exploring gaming platforms for marketing their products. Gucci, Ralph Lauren, and Givenchy have established spaces on Roblox, which is an app where individuals can play and create a variety of games while communicating with users online.
3. Focus on Sustainability
It is essential for luxury brands to understand what values are most important for their target market. For Gen Z, sustainability is a significant topic; they are interested in vintage styles and place value in protecting the environment. This is reflected in the trending resale revolution in the retail industry. This resale revolution is a chance to create luxury branding that supports sustainability through reselling past clothing that has been resurfaced or did not originally sell. According to a recent report by Sky Canaves, a senior analyst at Insider Intelligence, three fourths of luxury consumers view brand participation in resales as a “positive development.” If luxury branding efforts capitalize on the resale revolution, it could create a strong demand for items, making them sought-after products. This increased interest in certain products can sustain a luxury brand’s prestige and exclusivity without attaching the traditional big price tag to the item, which will appeal to younger generations.
4. Re-Imagine Status
To maintain their luxury status, brands will need to market themselves true to their heritage in a consistent manner across all platforms. However, it is also important to evolve a brand’s status to match what is changing throughout the world. According to Delphine Dauge (Managing Director at SGK Paris and President at ADC who has luxury experience with LVMH, Air France, and many other brands), consumers are redefining luxury from “passive, frozen-in-time status symbols to be purchased, to empowering, always-fresh experiences to participate in.” Instead of focusing on traditional exclusivity, people are pushing for inclusivity in brands, such as remixing cultural codes and creating fashion for any gender. It is important for luxury branding to maintain exclusivity in terms of demand but push inclusivity for all individuals interested in luxury. Find out more about how SGK has partnered with Air France for over 20 years to develop an ambitious strategy that places ever-evolving luxury experiences at the heart of customers’ brand experience.
5. Be Selective and Protective
While it is important for luxury branding to incorporate digital marketing and social media, brands should still be selective with their distributors to maintain their respected status. Companies should be able to control where their products are sold and should only partner with trustworthy platforms. For example, LVMH claimed in 2020 that they do not want to sell their brand on certain ecommerce platforms that involve third party sellers who could potentially sell counterfeit products. Luxury brands should assert control over distribution and emphasize direct-to-consumer channels, as well as selective retail partnerships. Chanel has tight control over their brand by limiting ecommerce sales to their beauty business, while their core apparel and accessories are exclusively in-store.
As technology continues to advance at the rapid rate it is, luxury brands will need to consistently evaluate their strategy to correlate with younger generations. These strategies must involve advanced technology, such as VR or AR, to maintain the personal connection customers have with the brands. Companies should also ensure that their status aligns with the ever-changing values of future generations, while being cautious with distributors to maintain exclusivity. Through a combination of innovation and personalization, luxury brands can continue to create excellent shopping experiences while maintaining their prestigious status. The world is changing, and luxury brands are here to stay.
About Lauren Terry
Lauren Terry is a rising senior at Duquesne University dual majoring in Marketing and Analytics and minoring in Sales. Throughout her internship at SGK, Lauren has focused on content strategy, metrics, social media content, and writing with a focus on luxury branding and marketing. Lauren is a certified Prosci change management practitioner with a drive to implement successful progression within businesses.
Source from sgkinc.com
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