Emerging luxury trends
The luxury industry is going through a period of transformation due to the change in climate with the globalisation of markets, the digital age, the perceived importance of immersive authentic experiences and the focus on sustainability.
Old rules don’t necessarily apply. And while many brands are nervous to embrace the change, others such as Hermes and Gucci are adapting and growing and their record sales are the proof of their success.
In emerging markets such as China and India, the persona of the luxury clientele has shifted. These people tend to be younger and more open to innovation. They don’t live in demographic silos anymore. They are harder to impress. They want to be disrupted. So the challenge is, how to capture the attention of this discerning, highly sought after, growing market.
FIVE STRATEGIES THAT LUXURY BRANDS ARE EMBRACING FOR THE FUTURE:
- Disrupt thinking. Brands that are getting creative, playful and even subversive with their own history and heritage are winning the hearts of this new audience.
- Creating a profound conversation beyond the brand. People are time poor, they now choose what they want to engage with so it is important that the brand is not always the hero in the conversation but a piece of a bigger picture. The conversation needs to be about community.
- Creating an intimate connection with the art world, including long term collaborations. Creativity is highly respected, revered by the luxury client, so an association with art is an exciting strategy to increase value in the eyes of the customer.
- Digital innovation. The digital landscape is changing so quickly. Those brands that are embracing this change and surprising and delighting their customers with the use of new technology have found a powerful way to win hearts.
- Sustainability and authenticity. The luxury client no longer wishes to be passive, they want to be immersed in experience, they want to touch, see, feel and believe. They want to be inspired. They want to feel that an experience your brand is presenting is truly unique, made just for them.
It is the people behind the brand, their mindset and their ability to shift their thinking to embrace change that will determine the success in adapting to the changes in the industry.
Written by: Emma Scott
Published: November 22, 2014
http://www.ferragamo.com