Consumers are constantly adopting new criteria to judge brands: sustainable development policy, capacity for innovation, value from fair trade… It is up to brands to anticipate these trends in order to get the best out of them. This is why nowadays in the luxury sector, it is more important than ever to understand the social, economic and cultural context and its impacts, in order to reach consumers of high-end products by meeting their aspirations and their desires. A shift in the competitive landscape with the new generations: Millennials and Generation Z In 2018, the luxury market was valued at 920 billion dollars : 590 million concerned experiential luxury – Diners, Travel, Drinks & Food, Designer objects, cars, boats, smartphones and tablets.
And, 330 Billion in personal luxury goods. Significant growth in luxury is expected with a market forecast at $ 1300 Honduras WhatsApp Number List billion by 2025. Today, Millennials are already at the origin of 32% of luxury purchases and this figure is expected to reach 50% in the coming years . Following these, Generation Z currently represents only 4% of sales , but the models predict growth. This customer segment should therefore not be underestimated because their attraction to technology is already influencing those around them, thus contributing to the development of a new era for the luxury industry .
Stimulate The Discovery, Interest, Sympathy And Ultimately The Consumer .
Luxury marketing must reinvent itself using new methods and tools In the next few years, the target customer segment of luxury brands will focus on an active and particularly digital audience whose expectations will be significantly different from the previous generation. The new era of luxury is already beginning, and new fashions and trends are emerging that will have to be taken into account by the luxury marketers of tomorrow so as not to miss the turn of this new era. 6 expert tips to use to seize the new luxury marketing opportunity 1. Seize the opportunity of 5G to provide a high quality experience In 2019, Some countries like China and the USA started the deployment of 5G.
This technology opens up new perspectives on the modes of communication between brands and their customers. In our already overloaded daily life where time is running out, access to information and services, now reinforced by the speed and quality of internet access, is already having consequences for the luxury industry . there is a trend towards an increase in the use of virtual and augmented reality services, also inducing a change in the purchasing experiences of consumers as a whole. According to the study “Deloitte Holiday Retail Survey 2019”, it is expected an increase of 14 to 18% of online sales this year; More than 2/3 of consumers say that among the products they look for online , on brand sites and search engines, they will buy some in physical stores afterwards.
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We can therefore finally say that regardless of the place of the final purchase, a brand’s digital strategy plays a key role in its marketing approach. Another key trend is that 70% of smartphone users plan to make a purchase from it. Consumers widely use their digital devices to discover new products and services, make them their own, collect opinions or read tests on them and finally move from the browsing and research experience directly to the act of purchase. Technologies such as chat robots , virtual reality, augmented reality and 3D are increasingly accessible to both brands and consumers; they are already an integral part of luxury marketing strategies.
However, all these tools induce high levels of requirements in terms of internet speeds, the speed of WEB pages and the design of the user interface . Source: Baume in partnership with Hapticmedia Ready to use 3D visualization like Guerlain, Baume, Kenzo to get higher conversion rates? Contact Hapticmedia for a free quote! 2. Engage in a direct sales approach to the customer for better promotion and a personalized relationship. In this landscape of technological change and frantic digitization, brands practicing the Direct-To-Customer (D2C / DTC) concept – in French Direct to the customer – such as I.Am.Gia , Glossier or Reformation are always gaining more ground .