Power your luxury brand marketing strategies with these trends in 2020.
What is Luxury? Anything more than just a need! But, is luxury brand marketing into a phase of metamorphosis? Many would say yes and some may differ! As the digital age is upon us, the definitions of luxury are changing, and Luxury brands are trying to reach more consumers and not only the elite class.
Gone are the days when luxury brands designed products, and marketed to only a handful of rich people. With the increase in spending power of millennials, a whole new market has emerged. Click To Tweet And this market has the right potential that can be exploited by luxury brand marketers.
In 2019, the Global luxury goods market produced a revenue of $318,797 million, and will grow at a Compound Annual Growth Rate (CAGR) of 3% for the forecast period of 2019-2023. If you are into a market this size, your marketing needs are also huge and you can’t just rely on the traditional approaches towards luxury brand marketing.
The marketing landscape has quickly transformed from conventional advertising to digital marketing. And with stiff competition in the age of E-Commerce, it is vital to have a sound marketing strategy. So, let us look at some luxury brand marketing trends that will certainly take center stage in 2020.
1. Personalized Luxury:
Personal luxury is already a market segment of the large pool of luxury brand marketing. But, the personalization of luxury products like beauty products, cosmetics and fashion products has seen a huge preference in recent times, and will continue to rule the marketing trends this year.
The personalized luxury market had registered an incremental growth of $83.06 billion in revenues. With a CAGR of 5% for the forecast period of 2019-2023, the market has shown a year over year growth of 4.15%. So, you can imagine the kind of importance this market possesses in the overall global luxury brand market.
These personalized luxury products have been amongst the revenues due to personalized marketing strategies. When 80% of consumers are more likely to purchase from a brand that provides personalized products, the personalization of products and marketing strategies is set to be among the marketing trends for years to come.
2. Social Media Engagement:
Luxury brands have entered the Social Media marketing realm since early 2012, but, it is the Social Media engagement that has been the difference between brands that have maintained their brand value and the ones that have lost relevance.
Social Media marketing has been for a while now, and now, it is all about Social Media engagement, more than just Social Media marketing. Today, about 54% of internet users are using Social Media Platforms to research products. This is where the presence of your luxury brand across all channels and active engagement comes in play.
There has been a marketing strategy of Social Media engagement through influencer marketing and this has been more fruitful for the luxury brands with the emergence of “Virtual Influencers.” These influencers do not need huge expenditure for branding and promotion.
Instead, these are computer-generated images (CGI) that have taken the Social Media platforms by storm. We have already seen luxury brands like Calvin Klien partner with Lil Miquela or KFC creating its virtual influencer for Colonel Sanders.
With the rising Social Media usage, this marketing trend will grow and emerge as a prime marketing strategy for luxury brand marketing strategies worldwide.
3. E-Commerce AR:
Augmented Reality has become more than computerized graphics and is now powering luxury brand marketing strategies on Social Media and E-Commerce websites. Many Social Media leaders like Facebook have started providing AR platforms like Spark AR for marketers to provide them tools to develop AR-based marketing strategies and advertisements to promote luxury products.
Amazon- one of the most prominent E-commerce giants, recently launched its development and hosting platform for AR/VR applications known as Amazon Sumerian. As a part of its Amazon Web Services, portfolio, this platform is specifically designed for mobile app development and web development with AR/VR technology.
First Hosted VR on Amazon Sumerian
But, the main purpose is to power brands to market their products better with the AR technologies and to allow them to create Augmented Marketing tools that can provide more user engagement.
There have been many such developments in the AR technology and will continue to strengthen the luxury brand marketing strategies this year too.
4. Voice Commerce Marketing:
What was the last time you searched for a product on a Bluetooth device? Yes! Internet of Things(IoT) has changed the way we look at our devices and use them. There are many smart devices like Amazon’s Alexa, Google Home, Apple Home, etc. that have changed the way we search for products or its related information.
A new market has emerged from the E-Commerce realm known as Voice Commerce. Luxury brands, need to capitalize on this opportunity and tailor their marketing strategies to cater to their product promotion and information through these voice assistants.
This marketing trend is certain to rule among the many others in 2020 and with this marketing strategy luxury brands can improve their consumer engagement and get more personalized marketing options.
5. DIY Marketing:
DIY or Do It Yourself has risen from a homemade formula to a branding and marketing strategy. We all know Nike, one of the biggest sports and shoes brand, has always been the forefront of new and bold marketing strategies and DIY campaign of design your shoes by Nike worked like magic and Nike made a fortune out of it.
Many brands are now looking towards this marketing trend and the same will reflect as one of the best strategies for luxury brand marketing this year.
We are on the front door of 2020 knocking down the new year with new strategies and zeal to market our luxury brands more comprehensively. But, what brands need to understand is the application and integration of these marketing strategies into their branding and business processes to keep them in sync with business goals and vision of the organization.
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