The world of luxury brands is an increasingly competitive market and to stand out and gain loyalty with customers, it is even more important to find new and creative ways to meaningfully connect with consumers. This is not just seen within the luxury sphere, indeed mainstream brands are also pushing into the premium category through collaborations and new lines with more premium offerings. Real luxury has to work harder than ever to maintain their attention and to distinguish itself whilst retaining its allure and style. Indeed, Christian Louboutin says, “Luxury is the possibility to stay close to your customers, and do things that you know they will love.”
From Gucci’s DIY service that allows customers to personalise trainers, wallets bags and more with letters, colours and different materials to Burberry Bespoke where one can choose the style, fabric and colour of their famous macs - luxury brans are increasingly offering new ways to allow their customers to express themselves.
Customisation bas became the new norm in terms of luxury retail. Indeed, 1 in 5 buyers claim that customisation was a driving factor in their purchase. The desire for individuality and self-expression cannot be ignored. On bespoke, shoe-maker par excellence Christain Louboutin says, “It’s a way for me to keep an intimate connection with my clients and to have direct feedback on how they perceive my work.” In the same article, Thomas Chauvet, an analyst at the US investment bank Citi stated that “The return to some degree of product personalisation in luxury is an astute way for brands to offer additional customisation services to a more discerning clientele while continuing to grow overall volumes, particularly in entry-level categories.”
In fact, the segment that contains personalised products often has a high margin (when compared to others) and is and is expected to grow faster than the luxury market as a whole. As a luxury digital marketing agency, the trend we see in personalisation over the last 20 years can also be framed within the digital disruption tha digital has allowed for and revolutionised people’s buying habits - further accelerated through the Covid-19 crisis.
Moving from a global outlook to a local one, luxury brands are further understanding the importance of their local markets to compliment their overall globale position. Indeed, by being able to understand local markets - the cultural, social, generational and geographical points – the individual consumer becomes the point on which the brand must focus. Likewise, on top of this luxury bands understand that their client is a global traveller and supports this understanding through creating a local experience that still ties in to their wider, global experience.
The store has become the centre of the luxury digital ecosystem which sees the increasing intersection of digital with luxury allowing for new experiences and increasing personalisation that matches the quality of in-store experiences. Stores are no longer just places for purchasing but are expanding their offerings from a simple physical presence to a centre of experience, logistics, and services, with a fully integrated and seamless omnichannel environment.
Burberry have been one of the early adopters as to the possibilities that new digital experiences can bring to retail, launching an experience that combined physical and virtual reality in a digitally immersive retail experience in Shenzhen, China. Visitors are encouraged to interact earning opportunities the more they interact with what was on display. The boutique was designed to capture consumer interactions on social channels and give them a tangible dimension through traditional retail channels.
How I Got My Birkin
With a base price in the range of £10,000 GBP Hermes’ Birkin Bag is one of the most iconic bags in the world. What motivates a buyer to spend such an amount on the bag?
Is it the bag itself, a product of very fine craftsmanship, or rather the imagery that radiates from that object, the desire to experience the values that the Birkin embodies firsthand? Shared across social media, the “How I Got My Birkin” shows the shift in Retail, which no longer revolves around the product and an exclusive and to some extent self-referential consumption, but becomes experiential, inclusive, and transversal across generations. There are many reasons for this transformation, but among them, the pervasiveness of digital communication (and social in particular) has certainly played a fundamental role. To build a distinctive and engaging online experience, omnichannel communication, online and offline, must be complete, fluid, and seamless.
If luxury brands want consumers that are more aware, it is vital that the brands personalise their experience and develop a relationship based around care, attention and listening. This model can be seen not only in physical stores but expanded across new technologies using the data that is at our hands through the clever building of an omnichannel and consistent digital ecosystem.
Personalising content
To succeed in conveying complex messages that are received and acted upon in an absolutely personal way, it is vital that luxury brands create careful content marketing strategies that can take into account, exalt, and channel the trend of personalisation. In other words, the challenge is to establish a relationship of loyalty with consumers: through personalising content in order to personalise products and experiences.
We are seeing this increasingly in the case of luxury, how experiential luxury can expand the boundaries around the brand. This mix of personalisation in conjunction with experience is leading to higher emotional engagement and aesthetic appreciation. Exciting new technologies are changing and shaping how we interact with luxury brands and how luxury brands interact with us.
Contact our luxury marketing agency via hello@theluxurymarketingagency.com or call +44(0)7835 233607 to speak to our team and discover how we can help your brand and business grow.
