Marketing Strategy for a Futuristic Luxury Brand
This post is about effective marketing strategies for luxury brands.
In the midst of the current market scenario due to COVID-19, luxury brands are getting creative with their marketing strategies. Traditional luxury strategies have connected with customers cultivating strong loyalty. Over time they are now being redefined to maintain the same on digital media. To put it simply, strategies are in need of a transformation that inclines at creative digital strategies. What we at Luxeveda call “Creative Technology.”
With this being said, ideating new strategies is not going to be easy nor is it a “one size fits all” strategy. So as a luxury brand, it is crucial to strike that balance between innovation, adapting to new trends and being future-ready all while maintaining the symbolic value of your business. Putting effort into your marketing strategy to stand out in this competitive and crowded industry is what really matters for your luxury brand.
How can luxury brands reiterate their strategies to compete in a future market where traditional ideas of luxury are changing? In this blog, Luxeveda talks about creative marketing strategies for luxury brands that we know are here to stay.
STEP INTO THE DIGITAL WORLD
With the increase in the spending power of Millennial and Gen-Z consumers, a new target audience is rising in the luxury market. The stereotypes of traditional wealth are no longer popular. The audience is in search of new terms to define status. They are here to make value-based acquisitions and purchases. The search is for brands that resonate with their individuality, entrepreneurial spirit, personal values all with the integration of a seamless digital experience. One of which is the new generation of Social Media.
In the past luxury, brands more prominently luxury fashion brands, steered the conversation about the brand with the help of their impactful customer voices. But today, they leverage the impact of social media. This digital twist has brought in a fresh perspective. It has given access to the entire world and shoppers to engage with their top brands remotely. Platforms such as Instagram and Pinterest were the first of the many to be explored gaining popularity to showcase the affluent lifestyle and designer tastes of their target audience. The Pinterest and Instagram accounts of Moda Operandi, Versace and Diorskin are few of the profiles you should check out.
Video marketing or Youtube Marketing is another powerful trend that Luxury Brands are blending into. Video is no doubt more engaging than text and has proved to be a powerful asset for e-commerce. The best example of an excellent Youtube Marketing strategy is Chanel. Their well organised and consistent channel provides insights into the latest brand news, collections, upcoming shows giving the audience access to all brand activities.
AUGMENTED REALITY AND VIRTUAL REALITY
Luxury products typically are expensive. Hence, a potential customer would prefer to touch, see and feel what they are looking to buy. Luxury brands are now heading into the world of augmented reality and virtual reality to make this possible. These technologies have moved past the computerised graphics phase and are merging into becoming a luxury brand marketing strategy on social media and e-commerce website. BMW was one of the earliest brands to incorporate AR technology into their marketing strategy. Through Tango, Googles’ AR technology customers could interact with the three- dimensional image of the car. One can virtually open the door or the boot of the car, making them get the actual experience of the car.
BLOCKCHAIN IS THE FUTURE
As one of the fastest-growing sectors in tech., brands are experimenting with Blockchain to ensure authenticity and traceability. With the Luxury Online model at a rise, digital authenticity is predicted to be the top theme of 2020. Hence, brands are looking at ways to reassure consumers on the provenance of their products. As blockchain has proved itself to be a scalable and reliable technology to fight counterfeit, luxury brands are looking to adopt this on their most exclusive items.
Fuchsia, a Seattle- based brand uses this technology to share details on workers who hand-make the brands’ shoes in Pakistan. The company recorded a 31% increase in online conversions. And a 45% boost in engagement over a period of six months.
As the luxury customer’s mindset evolves, it is important for the brands to incorporate strategies keeping in mind the defining times. Immersive collaborations, human-centric storytelling, Phygital pop-ups are few more strategies to consider including into your Marketing strategy. As a branding agency, Luxeveda works at staying on top of these trends. We make sure that your brand is a luxury brand of the future. One that is responsive to change and new expectations without diluting their core values.