Serving today's digital-first luxury customers - a top 7
Arguably, no sector has been more compromised by the rise in digital disruption than luxury retail. Many point to the dilemma for luxury brands moving online, questioning whether it is possible to retain brand exclusivity when digital serves to democratise their offering.
Whilst many luxury brands struggle with that challenge, others have been much quicker to make moves on the digital runway. Working with some of the world's leading luxury brands, such as Selfridges and Ted Baker, here's what our experience - and market developments - have taught us:
1. Luxury brands cannot ignore the digital disruption that has taken place. They must consider their ecommerce options to increase accessibility, or risk missing out on increasing amounts of revenue.
2. There has been a power shift between brands and customers. Customers are now able to say what they want and expect from a luxury product - and companies must listen.
3. Younger generations are fast becoming the new luxury consumer. Millennials and Gen Z will be the largest consumers of luxury goods in the future - this has big implications.
4. As the role of experience rises in prominence, brands need to be focusing on the experiential aspect of the purchasing process, and how this can add value to a product.
5. Quality of luxury goods must be maintained, whilst still offering value. This is a challenge that brands will have to think creatively about.
6. Customers no longer show brand loyalty like they used to. Both brands and retailers cannot expect repeat business based on loyalty alone, as customers are more inclined to prioritise convenience and price, even with luxury items.
7. The prevalence of personalisation online cannot be ignored. Customers have come to want and expect personalisation when buying products. The necessity of personalisation for those purchasing luxury goods is even higher.
Salmon, a Wunderman Commerce Company,works with leading luxury brands to keep them ahead in an increasingly digital-first world.