Digital is the driver of growth for the luxury industry and this trend is set to continue. Digital fashion trends in the luxury industry reshape the whole industry. More precisely, it changes the way brands engage and interact with their customers. Secondly, customer’s behaviors and attitudes towards luxury brands are changing as well. Today, luxury consumers need to be targeted in a more personalized way. In addition, luxury brands need to always engage their audience to increase their loyalty the brands. To achieve these goals, luxury companies need to change their ways of working. Hereafter, we will discuss some of the main trends that dominate the luxury landscape.
COVID-19 as a catalysator of digitalization
Due to the current pandemic and closure of boutiques, luxury ecommerce sales have grown considerably. Making up 23% of all luxury goods sales, luxury ecommerce sales almost doubled its market share compared to 2019. In addition, Gen Z represent a growing part of the luxury customer basis. As a digital-savvy audience that focuses on experiences, they impose great challenges to the industry.
5 digital marketing luxury trends that reshape the industry
The first main digital marketing luxury trend is shoppable content. This trend allows users to buy their goods and services without having to exit the app. Secondly, personalization is key to create better experiences. Nowadays, there is a growing trend of purchasing custom-made products. Also, customers are willing to pay more for these goods as they improve their experience.
Thanks to new technologies companies benefit from better smart bidding systems. According to eMarketer, digital ad spending will increase a lot and reach up to $517.5 billion in 2023. Next, also Chatbots are more frequently used. Chatbots respond to questions, improve personalization and uniqueness. Even more, the intelligent AI chatbot can anticipate user behavior and optimize the customer experience.
Lastly, marketing is currently undergoing a shift to mar-tech. There are several top trends that change luxury marketing. They are the application of IoT, Virtual Reality, Augmented Reality, facial recognition, and personalization. These technologies provide a better client experience and encourage clients to see, interact and appreciate products before buying them.
The luxury landscape is changing and so do the preferences of its customers. So, luxury companies will need to develop digital solutions to build competitive edge. In addition, to be successful in the future, luxury brands will need to identify new customer needs and change their strategies based on that.