THe future of Luxury Marketing

The Future Of Luxury Marketing

If we agree with various reports presented by leading luxury research firms on the future of luxury marketing, luxury consumption is slated to grow exponentially over the next decade, as the number of luxury consumers is said to see a remarkable increase from 380 million in 2014 to 440 million in 2020. Moreover, consumers will remain to be the main driving force behind this extraordinary growth of the luxury brand market as the overall spending of consumers, according to various reports, might see a huge spike from $985.5 billion today to nearly $1.2 trillion by 2020.

The statistics, according to several new reports, presents a golden opportunity to marketers of luxury brands to market their brand to both core luxury customers as well as to new luxury customers.

 

The Luxury Market is going the ‘China’ Way

The China market seems to have, finally, shoved aside America and Japan, by slowly taking over as the world’s largest luxury market. With heftier paychecks, desire to show off new found wealth, the appetite for designer clothes, handbags, watches and shoes in the Chinese consumer, the Chinese luxury market is poised to take over as the leader of luxury world.

 

Better Brand Visibility

These days more and more shopping is done online, making it important for brands to create better brand visibility, enhanced communication, and exchange of information. Luxury brands must adapt their offering by providing a digital experience that is tailored to suit the discerning needs of various customers. While some customers use the internet to access information about the price or features of luxury products, most of them, especially the younger generation, use digital media to interact with the brand and its followers on social media, to access brand content from various sources, and to follow  upcoming trends.

 

Mobile will lead

In addition, mobile platforms and brand applications are also having a huge impact on the luxury buying preferences of customers. These applications are making it easier for luxury customers to closely associate themselves with brands. Moreover, there are also reports to suggest that traditional forms of marketing have made a comeback, as word-of-mouth and advocacy seem to have a major impact on the buying decisions of customers, more than advertising and magazine ads.

 

The success of luxury marketing will lie in having a great marketing-mix merging traditional, digital and social marketing techniques, reaching old markets and new markets, but above all, luxury brands will need to create remarkable experience by reinforcing their relationships in the digital space.

 

Source: ReutersJingDailyThe Wall Street Journal, and Luxury Daily


luxury-logo-culture

Please Luxury, Forget The Prominent Logos

I recently read this great article by Tara Loader Wilkinson, the editor-in-chief at Wealth-X, a definitive source of intelligence on the ultra wealthy with the world’s largest collection of curated research on UHNW individuals. In her article titled "No Logos, We're Chinese", Tara explains that taste has evolved amongst the wealthy Chinese community such as they no longer want to purchase items plastered by a brand’s corporate identity.

 

Jing Ulrich, managing director and vice president of Asia-Pacific at JP Morgan, and one of Asia’s most esteemed bankers states that he “even sees people removing the label from the inside of their jacket as a way of making it more anonymous.” After years of flaunting their wealth, the Chinese have finally started to shun logos. Luxury brands face yet another challenge: they must adapt to this new reality in order to secure their position as leaders in the world’s second most prominent market for expensive goods.

 

While reading this article, I started thinking… When have I ever purchased an item with a prominent logo for one of my clients while I worked as a personal assistant to the UHNW community? The answer is simple: Never.

 

When did I see a charter guests flaunt a new logo covered Louis Vuitton bag when I worked aboard superyachts? Once again: Never.

 

What I learned from my years working for billionaires, celebrities and UHNWI is that they normally prefer to be discreet with their personal clothing style even if they love their superyachts, private jets and sports cars.

 

I had a charter guest once, married to an American baseball team owner who told me: “I simply love shopping at JC Penney and Target.” I was shocked, but then quickly realized that they probably wouldn’t have become billionaires if they had spent their money carelessly. She also mentioned that she never used to spend thousands of dollars on a purse simply to show off a logo when she lived more modestly, so why should she start now. She still wore the clothing that expressed her individual chic, being thankful that she was now able to simply afford the best.

 

For the most part, the average UHNWI loves luxury goods. Goods that reflect their own personal style, not the style of the community. They understand the value of premium goods and are willing to pay first-class prices. From my personal experience, most prefer to buy from boutique brands, the brand that is still a “secret” to others. I used to spend my days trying to find hidden gems for my employers and still do for LuxeInACity, our digital showroom.

 

In the past, boutique brands were hard to find, having to wonder the streets in a quest to find master artisans. Nowadays, the internet has made it increasingly easier to find exemplary small businesses around the world. Boutique brands are popping up all over the internet making personalized luxury more accessible. One thing is for certain, boutique luxury brands always seemed to bring about smiles.

 

According to Nicola Ko, senior luxury analyst at London-based Ledbury research, the eastern culture, which is well-known for showcasing logo as a social status, seemed to be intrigued and are starting to adopt this trend: “The Chinese have skipped over the stage where they want to fit into society by having what everyone else has, to wanting to express their own individual style. They are increasingly buying from smaller, niche brands, and we see luxury giants moving towards a brand elevation strategy for long-term growth – less logos, less canvas, more leather and precious skins,”

 

Will major luxury brands change their ways and cater to the new style of luxury? Will they stop plastering their handbags and accessories with prominent logos? I sincerely hope so. I love both LuxeInACity and AgenceLuxury, but honestly, I would never want someone to pay for a bag with our logo on it. We believe in discretion, high-quality and customer satisfaction.

 

Which “style” of luxury do you prefer: the sophisticated, discreet, savvy boutique luxury brand or the logo dominated world of “luxury brands”? From my perspective, I have to say: Please Luxury, Forget the Prominent Logos!