Exclusivity, personalisation and collaborations are the running themes that will make or break a British luxury brand within the next five years, according to WGSN.
A report commissioned by Walpole, titled “How to Attract the Luxury Consumer in 2020,” compiled information from trends and experts, revealing that luxury brands should be leveraging tactics that focus on creating individualised, exclusive experiences while also partnering with other companies.
Luxury brands that invest in these tactics now should have full-bodied strategy in connecting with the affluent consumer by the year 2020, at which time these pillars will become vital.
As the retail industry in general blossoms with digital experiences, many luxury brands may be forgetting the importance of in-store and exclusivity. While digital and mobile initiatives are vital, it will be those who master omnichannel that win out.
Luxury brands rely on their loyal customers, but to create loyalty marketers need to delve into personalisation and exclusive experiences. Giving the most valued customers early access to a collection or tailoring notifications based on their purchase history can increase the opulence of the entire brand experience.
For instance, brand exclusives will be 59 percent more likely to be beneficial towards consumers in 2010 and personalised notifications are 53 percent more likely.
In the past the industry was very straightforward, but as digital has emerged and startup culture has taken over, the game is different. Brands that collaborate with other brands, retailers or companies can give themselves an edge by offering something truly unique to customers.
Other research shows that digital media is expected to account for 27 percent of total advertising spend in 2016, according to new projections from global media network Carat.
(Source: Luxury Daily)