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: Reuters, JingDaily, The Wall Street Journal, and Luxury Daily
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