As 2023 is just three months away, brands are on a hunt to concoct the luxury marketing strategy that will bring them the desired results. For centuries, the meaning of luxury remained the same. People perceive them as a symbol of status, both in terms of capability and affordability. They were mostly adorned by the high-end audience for their premium designs, high-quality materials, and meticulous handcrafting. But at the turn and into the 21st century, the meaning of luxury began to change.
The major changes were brought in by both man and nature. First, the internet revolution made luxury brands reevaluate their core nature of exclusivity and reach. In the initial days of the boom, the grandeur labels kept their silence. They neither conformed to the new changes nor showed a strong inclination to remain the same. But as predicted by experts back then, the luxury industry slowly accepted the technological revolution. The towering walls slowly began to crumble.
Then came the second change from nature, the recent pandemic of Covid-19. While the internet modified the luxury domain, the health crisis redid the entire world in a novel way. Stores closed away as customers lost their right to feel and touch the product before making purchases. Online mediums became the only way to stay connected to the brands. Consumer preferences began to shift, which cannot be completely deemed for a short time.
Amid this chaos, new technological and digital assets development further fueled the confusion on the brands’ part. Known for their century-old legacies, brands are now scrambling to make up the luxury marketing strategy that answers the three major questions, listed below.
While it is hard to answer the last two questions, tackling the first one can be possible with the right information at your disposal. Two crucial elements in a continuous cycle make up the answer. Consumers make the trends. Trends are followed by customers. The cycle goes on. While it’s hard to put global customers on a rigid spectrum to better understand them, trends can always be understood. They are agile and slight modification will flow well with any set of customers.
Therefore, we’ve put together some of the major trends in luxury brand marketing that not only ruled 2022 but will take over the new year as well. It’s time to make preparations.
The direction of luxury marketing is rapidly changing with the emergence of new technology and consumer trends.
Experience associated with the offerings is one of the biggest trends in luxury brand marketing. As we move from a product to an experience economy, marketing strategies are joining the same path. A luxury experience can be defined as how the customers feel during the buying journey. From initial information gathering to final purchase, brands have initiated a new way to know the customer deeply.
Among them are augmented and virtual reality that creatively shapes a consumer’s experience with the alternation of sensations. Luxury labels now immersive VR tours enabling them to discover new products in a fun and exciting way, creating altogether new memories with them. In another move, they allow them to try on products with AR filters before making a purchase decision. Putting together these new luxury brand marketing strategies, the customer’s buying confidence is always skyrocketing, leading to sales.
These technologies rise to glory at the right time when everyone can access AR and VR. And with the pandemic further added more charm to them. In conclusion, brand experience will continue to shine as the largest marketing trend of 2023.
One outcome of the internet and the mobile boom is that luxury brands had to succumb to marketing on mass social media. Unlike other brands, these labels have solely used social channels to keep up their online presence. But they never used them to drive sales. Or to converse with the audience. As a result, social platforms just became vehicles to relay the latest updates.
Over time, it has slowly changed as luxury labels have realized that there’s more to sales in the 21st century. Forming an authentic relationship with their audience holds the golden key for their future years to come. But the transition wasn’t easy or quick. Always a one-way bond, it is taking a lot of effort for luxury brands to forge a connection with the buyers. Luckily, social media is here to help them with this.
Already a start, more and more brands in 2023 will use social media to carry out two-way conversations with their customers. To achieve this seamlessly, labels have to fully accept and embrace social media as a luxury marketing strategy and show their true selves on these platforms. In addition, they will have to keenly listen to what customers are saying and not saying to better craft the strategy onward.
While the industry is still far away to adapt to the e-commerce culture, it can and will use social media to drive a limited number of sales, preserving its exclusivity.
Brand experiences in imaginative virtual spaces are at the center of luxury marketing trends.
Dream-like World over Reality
Another major trend to consider while crafting the next marketing strategy is customers’ inclination towards virtual worlds. There have been many instances where customers loved the products and thought would be better in other imagination-rich contexts. Bringing those desires to reality, new developments of the metaverse are on their way to fulfilling the promise of offering dream-like worlds to the audience.
A new world in which there is no limit to creativity, usability, and practicality is about to greet the customers. Highly likely to be a part of customers’ lives in the future, it is worth investing for brands to establish and promote themselves in virtual spaces. Brands will create new virtual stores with related themes, carry out launch programs with buyers from all over the world, and so on.
The perceptive technologies of AR and VR will soon make these worlds as competitive and appetizing as the real world when it comes to luxury shopping. In short, the world of the metaverse is limitless in every aspect, paving way for new trends in the coming years.
For the first time ever, the spotlight is being switched from the product to the environment and the way in which the customer encounters it. They are attaching far more importance to the emotions the goods make them feel rather than the features or usage of it. Two factors explain the new change in product appreciation – Influencer marketing and cultural representation.
Influencers have the ability to sway the consumers’ perception of a brand by trying out and giving their reviews about them. Through digital channels, they explain how the product feels and how they feel about buying it. In short, they are expressing their emotional connection to the product. Due to their high credibility, most buyers often follow in their footsteps, wanting to have the same bond as them.
Consequently, more brands in 2023 will add influencers to their marketing strategy. Also, due to AI developments, brands now have a wide range of influencers to choose from, irrespective of their physicality.
Also, products have evolved into an extension of an individual in the current day. As consumers are in search of their identity, they eagerly want their consumption to be a part of them. Due to this, more brands will associate culture with their image, making it a key ingredient of the 2023 marketing strategy.
Most consumers look for an emotional connection with a brand rather than just a simple product.
If one takes a look at the production model of luxury brands, customer feedback was never a part of it. Talented designers across brands design luxury products that stem from their imaginations and inspirations. These were in turn perceived as priceless by the target audience back then. But things have begun to change recently, highly attributed to the consumer-trend cycle.
Tracing back to the latest reports, Gen Z is slowly becoming the largest consumer of luxury goods, with a spectacular growth of 86% year-over-year. This new wave of consumers does not accept what’s given to them. Rather they painstakingly search for things and ideas that present them in a clear light.
Pre-defined notions and designs do not appeal to these savvy consumers. So most luxury brands will likely pull out the consumer from the end side of the production to place them at the beginning, starting from 2023.
What does being at the start mean? Brands will take critical information from the customers regarding their tastes, preferences, outlooks, and so on. Then they will take it into consideration when preparing for the launch of the next collections. More than the inspiration approach, consumer data meticulously collected by the companies will drive the luxury designs.
Patagonia’s founder gives away the billion-dollar company to fight against climate change. While the brand may not be from the luxury industry, nevertheless it raised the bar for companies globally when it comes to social responsibility. This is true, especially for the luxury realm, as previously they are notoriously known for endangering wild species to produce high-quality products.
Moreover, as an affluent industry, consumers expect the industry to shoulder more responsible when it comes to serving the planet. Two intertwined factors drive the consumer’s support for responsibility more than superior quality from the luxury labels. One is to protect the planet while the other is their innate desire for their outlook to reflect their inner thinking and values.
Therefore, when designing the upcoming luxury brand marketing strategy, brands have to bring in the concept of sustainability. They can enforce the green concept in many ways and have to make sure it reaches the c0numers in the right way.
Another trend in the luxury domain is the resale market, which again comes under CSR from another angle. As high-end goods have long life and durability, buyers and sellers are quick to exchange in the new market. While brands may not have control over this, they can make sure to position it in the marketing strategy in a way to bewitch customers.
It is painfully clear that building a loyal customer army is incredibly difficult today. Catching up early on the trend is surely one way to grab their attention while staying ahead of competitors. As a pioneer in marketing trends, VSLB is here to help you to align your brand along the latest grooves. From customized virtual reality tours to high-quality 3D visualizations, we have all of them covered.
With success stories from our clients like Ralph & Russo, LG, and The History of Whoo, we’re known for our expertise that bridges the gap between your brand and the audience. Contact us today to kick off your next luxury brand marketing strategy.
Gain a complete picture of your product in the metaverse and its co-existence with your brand.
Gain a complete picture of the metaverse and its co-existence with your fashion brand.
For Project: [email protected]
For Press: [email protected]
5F Geumgang Bldg., Sinsa-dong 597-15, Gangnam-gu, Seoul, SK 06025
Gain a complete picture of your product in the metaverse and its co-existence with your brand. Revolutionize your Digital Initiatives.
You'll be redirected to the download section.