If you’re interested in marketing in the luxury industry then Luxury Daily is a must-read. They’ve just released their Luxury Marketing Outlook 2011 report and it’s full of interesting insights. What’s clear is that the future of luxury is digital. As editor Mickey Alam Khan says as he introduces the report: “savvy understanding of how the Internet and mobile influence all channels will make the difference between a successful luxury brand and one that sticks to an old formula for a different era.” I agree.
You can click here to download the report in its entirety but here are some highlights from Alam Khan’s introduction:
It is understandable for luxury brands to proceed with caution. After all, luxury’s coin is exclusivity, rarity, quality and high-perceived value – and none of these attributes should be tarnished by marketing or retail efforts that don’t mesh with the brand’s values.
That said, the luxury consumer is evolving. Truly high-net worth individuals possess the best computers and mobile phones, ranking these possessions up with great cars, homes, art and a penchant for unique entertainment experiences.
Interact, not distract
Indeed, most luxury consumers access news and information the way the rest of the world does: through the Internet on a computer or via a smartphone, along with print and broadcast media.
While they continue to read magazines and watch television, these luxury consumers are quite influenced by what drops in their email inbox or what their kid texts to their phone.
So, for those brands charting their marketing and retail strategy this year, making digital the centerpiece of their efforts will be a smart move.
Harnessing digital media’s ability to interact more than distract is something that needs to gain wider circulation among luxury marketers concerned about diluting the brand’s value.
The time is now to combine the use of digital media with offline marketing channels to build a database of loyal consumers who opt in to receive offers and updates via email, text or mail.
Now, more than ever, brands should deliver smart offers and consistent experiences online, offline and in-store to make the switching costs high for consumers to move their business to a rival.
Word on print
Singing paeans to online and mobile doesn’t mean that traditional luxury marketing will not be effective.
On the contrary, luxury brands should press ahead with smart print ad campaigns in the pertinent magazines and newspapers, supported by regular drops of catalogs and seasonal out-of-home campaigns.
Where print – be it an ad, luscious mailer or catalog – scores over digital is the ability to capture and frame the romance and mystique of the brand. In this era of economic hardship, retaining the mystique is key to maintaining brand allure and customer loyalty.
So overall, what can the luxury industry expect this year? More print advertising, increased online videos, fewer mail drops, continued outdoor advertising and a barrage of emails touting discounts and sales.
Expect to see more brands launch mobile applications and extend their ecommerce presence to mobile Web sites – to great success. Yes, eventually, someone will buy a jet on the mobile site.