How Do I Invest In The Luxury Goods Industry? – How can we avoid critical mistakes when selling luxury goods online? In our blog post, we review 5 strategies to ensure your luxury market is focused on the mainstream market.
By 2025, online luxury sales will triple their contribution to the global luxury market to more than $91 billion and account for 20 percent of all luxury sales. This is thanks to the work that McKinsey consulting firm calls “Luxury 4.0”.
How Do I Invest In The Luxury Goods Industry?
In luxury 4.0, luxury brands and retailers use data to better understand their customers, identify emerging interests, and plan the process of turning ideas into products.
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Online shopping and digital experiences are increasingly influencing consumers’ purchase of luxury goods.
McKinsey estimates that 80% of luxury goods purchased online today are heavily digitally influenced, and consumers may take up to 15 digital steps during a luxury purchase.
This can partly be attributed to the generational change taking place in the luxury market. However, luxury shoppers, upstarts, affluent millennial shoppers, and Gen Z shoppers born between 1981 and 1994. Those born between 1995 and 2010 now account for 40% of all luxury purchases.
With both generations driving luxury sales and both growing up in an era where digital technology is constantly evolving, luxury e-commerce sellers have never been better positioned to leverage and optimize digital marketing.
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Selling luxury goods online can take lessons from luxury fashion retailers such as Net-A-Porter and Farfetch. Both brands have embraced digital luxury stores very well.
As a market leader, FarFetch is well known for its original technology – especially personalization. Meanwhile, Net-A-Porter has undergone significant business transformation by incorporating mobile and artificial intelligence technologies into data-driven strategies.
In this article, we’ll learn how to sell luxury products online to take simple steps to instantly implement luxury ecommerce sellers in their luxury sales and marketing strategy.
According to Deloitte Global Powers of Luxury Research, the rise of e-commerce and the availability of digital channels to reach luxury brands will increase consumer demand for high-quality, personalized content.
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Today’s consumers want to be seen as individuals, and this need is amplified when they buy something of great value.
One of the ways Net-A-Porter personalizes your shopping experience is by offering EIP members. EIP members (Essential Individuals) are open access, including a personal shopper who delivers luxury goods to their home address, waits for the products to be tested, and then collects the products to be returned.
There is also a pre-order service, the possibility to buy new products 36 hours before they are available to other customers, private sales and surprise offers for EIP members.
To become an EIP member, members must accumulate up to $70,000 in sales in a 12-month period. Surprisingly, the Net-A-Porter E.I.P. Although they account for only 2 percent of the workforce, they account for 40 percent of the market.
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Luxury e-commerce retailers can take advantage of this high level of customer demand and follow Net-A-Porter’s lead, even if they are small or medium-sized businesses.
Segmenting your audience based on customer lifetime and targeting ads or early purchase opportunities to high-status customers can be one way to encourage other customers. Similar purchases can open up similar opportunities.
On the other hand, if you simply provide a customer-centric service, your fashion e-commerce business will stand out from the competition by highlighting customers as your core value and future USP. Net-A-Porter does this by introducing 24-hour fashion consultants.
When selling luxury goods online, a marketing strategy that offers a unique, personalized experience can also be effective, recommending products to customers based on their previous purchases, cars or wish lists.
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Consumers who receive a personalized experience are more likely to invest and become loyal customers, resulting in repeat purchases and higher LTV.
Although the rise of digital channels and online shopping has led to the decline of traditional retail, luxury shoppers still go to stores for the brand experience.
Many luxury goods require aspects of personal service that cannot always be replicated in online e-commerce: professional sizing and fitting, tailoring, fitting, etc.
Stores such as Gucci and Bvlgari offer customers showrooms, jeweler Tiffany lets you connect with a diamond expert and customize an engagement ring, but Burberry goes further by partnering with Uber to take customers to deliver to the nearest store.
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It is important to connect online and online to attract visitors to the store where they buy after the luxury purchase. This is called a multi-channel conversion strategy.
A search engine optimization technique known as geo-targeting is one way to show local store visitors when they arrive at your website and direct them to brick-and-mortar stores.
Similarly, in-store pickup services (BOPIS) can encourage people to buy through different CTAs on landing pages and products, or by displaying only specific store products.
The value proposition is not only about the value the product represents in the customers’ everyday life. It also includes the brand name.
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Products from high-end retailers are automatically better value for money due to the luxurious details of their products. Brand consumers buy their products when they buy them.
See how Dior adds value to its products by introducing a unique technique found in every handbag:
As storytelling is an important part of all marketing, if your brand is built around a specific heritage or story, tell that story by showing your values or brand within your experience. “Internet.
Social media can play a very important role in converting luxury e-commerce sellers to consumers. An example of a successful luxury ad on social media is Burberry’s ‘The Tale of Thomas Burberry’, photographed by Oscar-winning actor Asif Kapadia.
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The microfilm features famous actors such as Lily James and Domhnall Gleeson and explores the life, struggles and entrepreneurial spirit of the brand’s founder, Thomas Burberry.
The video was first posted on the brand’s Facebook page before going viral and has been viewed more than 15 million times and is being hailed as one of the best holiday ads of all time.
For Burberry, this popular film works on many levels. This video generates a lot of interest and helps to load the brand identity and USP in the mind of the audience. Everything worn in the film can be bought in the Burberry store, to promote the products, and again on many channels for a large audience.
With the help of stories, luxury e-commerce stores can not only attract visitors and customers with their brand identity, but also interact with their products.
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By showing the story behind the creation of a certain product, visitors can invest in the idea and visit the site to learn more about the advertised luxury product.
As a natural fodder for storytelling and social media marketing, pouring resources into quality, relevant content can increase sales to existing and potential customers.
The advantage of quality content marketing for luxury brands is that it can communicate the high level of luxury brands to the target audience through its language and style.
Content can come in the form of informative blogs, well-produced videos, step-by-step guides, and even emails, creating the same impression as a glossy luxury brochure.
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Louis Vuitton publishes a detailed city guide as a magazine (also available as a mobile app). These guides provide expert advice on the best places to visit in the city, which are not usually covered in tourist books. At the same time, when introducing these places of honor, the guide really shows the style of fashion and the clothes worn there.
Not only did their audience want these custom guides, they bought them at $25 a copy. Louis Vuitton knows that its audience craves responsible knowledge and that a sense of uniqueness is essential to high fashion. When you sell luxury, capital.
Creating content that promotes and influences diversity leads to high-quality customers and high-quality customers. For e-commerce sellers, one example would be to launch a gift guide during the peak holiday season that provides unique insight into Christmas best sellers. You can use the same method for your Valentine’s Day build.
As a multi-channel content marketing strategy, follow suit with an email marketing strategy or blog content that covers different products and focuses on the terms and conditions, followed by recurring, non-transferable reminders. , and you can buy in combination with a CTA.
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Customers are looking.