Luxury brands are struggling to attract younger consumers like millennials who have different spending habits than older generations. Millennials prioritize experiences over ownership and are more influenced by social media than in-store salespeople. As a result, luxury brands need to shift their marketing strategies to focus on personalization, customization, and digital touchpoints to engage this new type of luxury consumer. They must use technologies like predictive analytics and big data to better understand customer profiles and behaviors in order to inspire discovery and drive sales through personalized experiences online and in stores.
Luxury 2020: The Trends Shaping the Luxury Market of the FutureSeymourSloan
By 2020 we will see a different luxury market.
Luxury will not be immune to the businesss and external changes reshaping the world and these will create challenges that brands must be aware of and seek to maximise.
The Dead. Serial Killers. Mutants.
Halloween staples, sure. But these genre titles can also be applied to brands and their life cycle.
Brand graveyards are littered with brands that were one-dimensional, not innovative, and generally lost value in culture (RIP Tower Records). No one is immune to the curse, but, with proper care, brands can be resurrected.
This Halloween season, Y&R’s BrandAsset Valuator® (BAV) - our proprietary brand management tool and global database of consumer perceptions of brands – looked at 20 years of data to analyze The Good, The Bad, and The Dead. Using BAV’s measurements on four key pillars of brand health and 48 brand imagery dimensions, we looked at brands that are seemingly immortal, the ones that risk becoming irrelevant, and those that have gone to that great big brand grave in the…well, ground.
In the two decades that Y&R’s BrandAsset® Valuator (BAV®) - the world’s largest database of brand perceptions - has studied the brandscape, brands have become 200% less distinct from one another. Marketers must work harder than ever in order to make their brands stand out. But how? By studying thousands of brands - from the most iconic to the most commoditized - we found that breakaway brands have an inherent tension that makes them irresistible. We call this BRAND TENSITY®
Women are responsible for 80% of purchasing decisions and yet 76% feel that brands do not represent them. We think it's time to change that. Which is why we've been running the 21st Century Woman initiative, looking at the mindset of this audience and how brands speak to her.
As part of this, we brought together a number of women, outside of the advertising industry, to find out their views on the big pieces of work showcased at the Cannes Lions International Festival of Creativity.
The values of Millennial shoppers are changing how we define and sell luxury. Learn how this consumer has evolved, and which luxury brands are winning by offering meaningful experiences instead of just stuff.
Super Bowl 2020 / The insights behind the ads Canvas8
Why is optimistic advertising so appealing? How are people defining the ‘American Dream’ for themselves? And could breaking the fourth wall to subvert hard-selling win over new fans? Canvas8 unpicks the behavioral themes present in 11 notable campaigns from the 2020 Super Bowl.
To access the full report, visit: https://resources.canvas8.com/superbowl2020
Luxury 2020: The Trends Shaping the Luxury Market of the FutureSeymourSloan
By 2020 we will see a different luxury market.
Luxury will not be immune to the businesss and external changes reshaping the world and these will create challenges that brands must be aware of and seek to maximise.
The Dead. Serial Killers. Mutants.
Halloween staples, sure. But these genre titles can also be applied to brands and their life cycle.
Brand graveyards are littered with brands that were one-dimensional, not innovative, and generally lost value in culture (RIP Tower Records). No one is immune to the curse, but, with proper care, brands can be resurrected.
This Halloween season, Y&R’s BrandAsset Valuator® (BAV) - our proprietary brand management tool and global database of consumer perceptions of brands – looked at 20 years of data to analyze The Good, The Bad, and The Dead. Using BAV’s measurements on four key pillars of brand health and 48 brand imagery dimensions, we looked at brands that are seemingly immortal, the ones that risk becoming irrelevant, and those that have gone to that great big brand grave in the…well, ground.
In the two decades that Y&R’s BrandAsset® Valuator (BAV®) - the world’s largest database of brand perceptions - has studied the brandscape, brands have become 200% less distinct from one another. Marketers must work harder than ever in order to make their brands stand out. But how? By studying thousands of brands - from the most iconic to the most commoditized - we found that breakaway brands have an inherent tension that makes them irresistible. We call this BRAND TENSITY®
Women are responsible for 80% of purchasing decisions and yet 76% feel that brands do not represent them. We think it's time to change that. Which is why we've been running the 21st Century Woman initiative, looking at the mindset of this audience and how brands speak to her.
As part of this, we brought together a number of women, outside of the advertising industry, to find out their views on the big pieces of work showcased at the Cannes Lions International Festival of Creativity.
The values of Millennial shoppers are changing how we define and sell luxury. Learn how this consumer has evolved, and which luxury brands are winning by offering meaningful experiences instead of just stuff.
Super Bowl 2020 / The insights behind the ads Canvas8
Why is optimistic advertising so appealing? How are people defining the ‘American Dream’ for themselves? And could breaking the fourth wall to subvert hard-selling win over new fans? Canvas8 unpicks the behavioral themes present in 11 notable campaigns from the 2020 Super Bowl.
To access the full report, visit: https://resources.canvas8.com/superbowl2020
Here is a roundup of 2017 Cannes Lions facts, stats, & notable news, our take on four key trends from work that won (including case studies of the winning work), and thought leadership from DigitasLBi attendees.
How can brands celebrate culture? // Five behavioural shifts underpinning the...Canvas8
The 2019 Cannes Lions International Festival of Creativity brings together some of the world’s most innovative advertisers to recognise the best campaigns from the year. Canvas8 examines the winning campaigns to identify the five key behavioural shifts underpinning this year’s Grand Prix winners and the opportunities they present for brands.
Marketing's over-reliance on consumer relevance has led to advertising uniformity. In such a world, it's more important to be different than to be relevant.
Where Are The Jetpacks!? Cultural Experience Marketing and The Digital Revolu...Eric Shutt
As technology and marketing evolve, people are starting to question the role that digital plays in our lives - and the value it adds to real life experience in providing purpose and value.
At the intersection of this transformation in digital are the disciplines of Cultural and Experience Marketing. Only by breaking past established ways of thinking can agencies and brands continue to deliver true value, meaning and purpose to clients and customers.
In this presentation, we’ll explore the convergence of current trends, new approaches, and how to incorporate it all into your strategic planning to be ahead of the game in the years to come.
By the end, you’ll be able to:
1) Understand how the core principles of Cultural and Experience Marketing can guide digital planning.
2) Evaluate the fundamental value and purpose that people get from your Brand.
3) Identify and understand current gaps in your strategic and tactical marketing approach.
4) Apply different types of strategic thinking to content, creative, and campaign planning.
5) Be able to identify and become a true Cultural Experience brand.
+++
More @ http://SummitX.co
The best you can do to learn how to win an award is to review campaigns which have already won. So find here winning PR programs from last years at Cannes Lions, D&AD and CLIO. Listen and learn.
The Joy of Shopping polled 7,250 shoppers in seven
markets – China, India, Brazil, Russia, USA, UK and UAE – across age, income and region (both Tier 2 and 3 regions as well as major cities). The first quantitative global study of shopper mindstates.
Global Brands vs Global Celebs: Who's the Smarter Marketer?Freddie Laker
As globalisation and digitalisation continue to break down the barriers between cultures and geographies we're seeing a rapid rise in global brands, but also in true global celebrities. Celebrities, for better or worse, are brands in their own right and they operate in areas that are passion points for consumers and frequently leverage immense social currency.
Omar Epps, who plays Dr Eric Foreman on the global TV hit House, joins SapientNitro to explore the way celebrities are leveraging cutting-edge marketing techniques and leading in adoption of new digital platforms such as Pinterest, Instragram, or Beeyoo. Global brands can learn from global celebrities to be more effective, but can global celebrities learn from global marketers?
Our open dialogue debate the strategies and communication tactics adopted by both global marketers and celebrities while sharing some of our experiences and insights around supporting global brands. Can 'brand purpose' compete with 'celebrity brands' or do they exist in harmony?
Who's the smarter marketer? In asking who is winning consumer interest we will explore the differences to find new ways to reach consumers, build brands, and drive sales.
This deck was presented at Cosmoprof North America in Las Vegas on July 29, 2018. By 2020, today's teens will be the largest group of shoppers worldwide, accounting for 40% of the U.S., Europe and BRIC shopper base. The needs, behaviors and expectations of this group will influence the future of mainstream retail. Global design consultancy FITCH will share proprietary insights about Gen Z - the most culturally diverse, digitally connected generation to date and retail's biggest challenge yet. Learn what shopping attitudes, motivations and behaviors of Gen Z make them so different from other generational cohorts. Discover how retailers and brands engage with this new kind of shopper who pays less attention but has a sharper and hyper-informed eye. Explore the distinct strategies and tactics retailers can employ to attract Gen Z with seamless and highly commercial experiences.
Luxury retail trends and customer experience in a digital era. A perspective on the customer experience of the future, case studies from leading retailers today and the implications for business corporate strategy, retail stores, employees and HR.
For more on Retail, Digital, Employee and Customer Experience connect with Deloitte Digital Southeast Asia @DeloitteDigi_SG. We’re always happy to talk.
From strategy to delivery, Deloitte Digital combines cutting-edge design with trusted business and technology acumen to define and deliver tomorrow’s business, today. Deloitte Digital is committed to helping clients unlock the business value of emerging technologies.
From Simple to Splintered to Seamless: In this new technology-enabled world, how can brand marketers and retailers capture the imagination and retain the loyalty of their customers?
Interbrand's Best Retail brands report ranks the top 50 U.S. retail brands by brand value, as well as the top retail brands from the U.K., France, Germany, Spain, and the Asia Pacific. The U.S. brands are valued for the fourth time in collaboration with Interbrand Design Forum, the retail experience group within Interbrand.
How are changing consumer behaviours shaping the future of grocery retail? What does tomorrow’s shopper care about? How do they shop? Why is the shopping experience changing? Nathan Watts, Creative Director at FITCH presented this deck to attendees at the annual World Food Moscow event in Sept 2019.
Unstoppable. The tech revolution is here, adapt or die.FITCH
Tim Greenhalgh's presentation as part of a panel at BCSC 2014. The panel explored the evolution of technology, what it means for the retail property sector and what’s around the corner in terms of new technology development.
The panel was chaired by Sean Curtis, Land Securities and also included Saurabh Sethi, GSMA and Patrick Gallagher, CitySprint.
6 Key trends that every brand and every marketer should follow from this year Cannes Lions International Festival of Creativity. The trends where chosen based on the award winning campaigns and some talks and seminars.
Here is a roundup of 2017 Cannes Lions facts, stats, & notable news, our take on four key trends from work that won (including case studies of the winning work), and thought leadership from DigitasLBi attendees.
How can brands celebrate culture? // Five behavioural shifts underpinning the...Canvas8
The 2019 Cannes Lions International Festival of Creativity brings together some of the world’s most innovative advertisers to recognise the best campaigns from the year. Canvas8 examines the winning campaigns to identify the five key behavioural shifts underpinning this year’s Grand Prix winners and the opportunities they present for brands.
Marketing's over-reliance on consumer relevance has led to advertising uniformity. In such a world, it's more important to be different than to be relevant.
Where Are The Jetpacks!? Cultural Experience Marketing and The Digital Revolu...Eric Shutt
As technology and marketing evolve, people are starting to question the role that digital plays in our lives - and the value it adds to real life experience in providing purpose and value.
At the intersection of this transformation in digital are the disciplines of Cultural and Experience Marketing. Only by breaking past established ways of thinking can agencies and brands continue to deliver true value, meaning and purpose to clients and customers.
In this presentation, we’ll explore the convergence of current trends, new approaches, and how to incorporate it all into your strategic planning to be ahead of the game in the years to come.
By the end, you’ll be able to:
1) Understand how the core principles of Cultural and Experience Marketing can guide digital planning.
2) Evaluate the fundamental value and purpose that people get from your Brand.
3) Identify and understand current gaps in your strategic and tactical marketing approach.
4) Apply different types of strategic thinking to content, creative, and campaign planning.
5) Be able to identify and become a true Cultural Experience brand.
+++
More @ http://SummitX.co
The best you can do to learn how to win an award is to review campaigns which have already won. So find here winning PR programs from last years at Cannes Lions, D&AD and CLIO. Listen and learn.
The Joy of Shopping polled 7,250 shoppers in seven
markets – China, India, Brazil, Russia, USA, UK and UAE – across age, income and region (both Tier 2 and 3 regions as well as major cities). The first quantitative global study of shopper mindstates.
Global Brands vs Global Celebs: Who's the Smarter Marketer?Freddie Laker
As globalisation and digitalisation continue to break down the barriers between cultures and geographies we're seeing a rapid rise in global brands, but also in true global celebrities. Celebrities, for better or worse, are brands in their own right and they operate in areas that are passion points for consumers and frequently leverage immense social currency.
Omar Epps, who plays Dr Eric Foreman on the global TV hit House, joins SapientNitro to explore the way celebrities are leveraging cutting-edge marketing techniques and leading in adoption of new digital platforms such as Pinterest, Instragram, or Beeyoo. Global brands can learn from global celebrities to be more effective, but can global celebrities learn from global marketers?
Our open dialogue debate the strategies and communication tactics adopted by both global marketers and celebrities while sharing some of our experiences and insights around supporting global brands. Can 'brand purpose' compete with 'celebrity brands' or do they exist in harmony?
Who's the smarter marketer? In asking who is winning consumer interest we will explore the differences to find new ways to reach consumers, build brands, and drive sales.
This deck was presented at Cosmoprof North America in Las Vegas on July 29, 2018. By 2020, today's teens will be the largest group of shoppers worldwide, accounting for 40% of the U.S., Europe and BRIC shopper base. The needs, behaviors and expectations of this group will influence the future of mainstream retail. Global design consultancy FITCH will share proprietary insights about Gen Z - the most culturally diverse, digitally connected generation to date and retail's biggest challenge yet. Learn what shopping attitudes, motivations and behaviors of Gen Z make them so different from other generational cohorts. Discover how retailers and brands engage with this new kind of shopper who pays less attention but has a sharper and hyper-informed eye. Explore the distinct strategies and tactics retailers can employ to attract Gen Z with seamless and highly commercial experiences.
Luxury retail trends and customer experience in a digital era. A perspective on the customer experience of the future, case studies from leading retailers today and the implications for business corporate strategy, retail stores, employees and HR.
For more on Retail, Digital, Employee and Customer Experience connect with Deloitte Digital Southeast Asia @DeloitteDigi_SG. We’re always happy to talk.
From strategy to delivery, Deloitte Digital combines cutting-edge design with trusted business and technology acumen to define and deliver tomorrow’s business, today. Deloitte Digital is committed to helping clients unlock the business value of emerging technologies.
From Simple to Splintered to Seamless: In this new technology-enabled world, how can brand marketers and retailers capture the imagination and retain the loyalty of their customers?
Interbrand's Best Retail brands report ranks the top 50 U.S. retail brands by brand value, as well as the top retail brands from the U.K., France, Germany, Spain, and the Asia Pacific. The U.S. brands are valued for the fourth time in collaboration with Interbrand Design Forum, the retail experience group within Interbrand.
How are changing consumer behaviours shaping the future of grocery retail? What does tomorrow’s shopper care about? How do they shop? Why is the shopping experience changing? Nathan Watts, Creative Director at FITCH presented this deck to attendees at the annual World Food Moscow event in Sept 2019.
Unstoppable. The tech revolution is here, adapt or die.FITCH
Tim Greenhalgh's presentation as part of a panel at BCSC 2014. The panel explored the evolution of technology, what it means for the retail property sector and what’s around the corner in terms of new technology development.
The panel was chaired by Sean Curtis, Land Securities and also included Saurabh Sethi, GSMA and Patrick Gallagher, CitySprint.
6 Key trends that every brand and every marketer should follow from this year Cannes Lions International Festival of Creativity. The trends where chosen based on the award winning campaigns and some talks and seminars.
The Paris Luxury Market - Outlook for 2020David Bourla
Cushman & Wakefield has just published a report on the luxury retail-property market. Based on exhaustive data concerning retail store openings and development plans, the report provides a geographic overview of the Paris luxury market. In addition, various scenarios for 2020 are put forward.
Business design, Miša Lukić, Leo Burnett Srbija, MQ konferenca, 14. November ...Zdruzenje_Manager
Miša Lukić, ustanovitelj in lastnik oglaševalske agencije Leo Burnett Srbija s 130 zaposlenimi, velja za enega najuspešnejših oglaševalskih managerjev na Balkanu. Svoje voditeljske veščine je brusil tudi v Kuvajtu, Dubaju in Bolgariji. Prejemnik letošnjega priznanja najboljši zaposlovalec v Srbiji je razvil posebno tehniko nabora novih sodelavcev, pri katerih najbolj ceni integriteto, čustveno inteligenco in osebno energijo. Kot sam pravi: da bi vam delo hitro minilo, morate do njega gojiti strast. Zadnja leta se navdušeno poglablja v raziskovanje poslovnega dizajna (business design).
Jonge honden creative agency perspective on programmatic72andsunnyNL
In collaboration with Google and Google Zoo, 72andSunny Amsterdam is mentoring Jonge Honden through a pitch process.
Jonge Honden is a foundation that helps Dutch young creative talent to kick start their career. Every year they organise a pitch in collaboration with Google. This year the challenge is to come up with a programmatic campaign.
72andSunny has shared these slides with the Jonge Honden, to give insight in their creative vision on the trending media opportunity programmatic.
Winners of the Jonge Honden pitch will be announced at Cannes Interactive 2015.
http://www.72andsunny.com/about
http://jongehonden.nl/pitches/2015/05/google-programmatic-hack/
Luxury 3.0- a new Retail Scenario for Product Mass Customization and On Deman...ELSE CORP
ELSE Corp offers a new solution for luxury fashion retail: "Luxury Product Customization and Virtual Retail". Introduction to New Trends & New Principles, The Perfect Product and The Virtual Retail. Luxury 3.0 scenario
For more info: http://www.else-corp.com/
This report marks the 20th year of identifying
the 250 largest retailers around the world and
analyzing their performance across geographies,
sectors, and channels.
Over the last 20 years we have seen a seismic shift
in retail and the customers that retailers serve.
Consider that in 1997, the inaugural year of this report,
today’s average Amazon Prime customer was just
16 years old, AOL was pioneering social media, and
handheld virtual pets were the hottest-selling toys.
Today, handheld (or wearable) digital devices are
ubiquitous and a younger, social customer has come of
age. We are living in an era where customers are in the
driver’s seat more than ever before and they are craving
authenticity, newness, convenience, and creativity. We
are living in the customer-driven economy.
Our retail vision is global, our voice international.Davide Gaeta
Unprecedented times, where consumers are more demanding and seek a deeper emotional connection to Brands. There has been a major shift from product transactions, buying and selling to integration. All this has been driven by social connection. 40% of people spend more time socialising on the internet than sharing face to face. Virtual visibility is our new currency – don’t share, don’t care attitude. Online is the new oxygen. Consumers today want access to products at any time.
Overture 2.0 - Connect the Dots of the Premium Economy Jordan Yates
Overture 2.0 is a Louis Holdings annual perspective detailing brand insights, technology talk, business opportunities, and market predictions. The document is designed to provide partners, customers, and peers an inside perspective on what Louis Holdings sees and thinks.
Digital Survivors—Death of the Retail CultureAccenture
The landscape of retail players and consumers has been drastically reshaped and the end-to-end consumer value chain is expected to transform beyond recognition in just two to five years. With online commerce growing at four times the rate of the overall industry, many traditional retail giants have made significant investments—upwards of $70 billion USD—in digital channels.So, why do their market caps continue to decline?
Success at retail is about creating great experiences. Just like dating.
Sources:
1. 2011 Rightnow Customer Experience Impact Report
2. Harbor Industries: Industry Trends and Insights
3. Kissmetrics - The Price of Bad Customer Service
4. Forrester / The Business Impact of Customer Experience, 2012
5. Dr4ward / What is Social Currency and How Does it Effect Social Commerce? Infographic
With the NET-A-PORTER and Yoox merger, all luxury brands need to quickly embrace new e-commerce strategies and to develop unique social media experience.
This takeaway report aims to explore what is at stake for the luxury industry, to highlight few best practice both from a content strategy perspective and from a retail marketing one.
From anti-social behaviours to re-generate exclusivity, to new approaches regarding customers journeys, the opportunity is big for luxury brands.
Featured brands: Hermès, Chanel, Louis Vuitton etc.
More information on http://thisisreup.com
Upshot has released its fifth annual trends report spotlighting technological, demographic and cultural shifts that will shape the landscape for marketers and brands in 2014.
This article by Saswati Saha Mityra, a Consumer Behaviourist, was published in issue 07 of Social Technology Quarterly.
Summary: While the community of luxury buyers grows with the addition of young luxury buyers, a technological advancement and direct engagement by luxury brands is required as the new entrants are tech-savvy and arrive with their own perceptions of luxury.
The following paper offers a glimpse into what retailing will look like in 2020 and outlines the implications for retailers today. In order to succeed, retailers will have to rethink their strategies and their points of differentiation; the customers of 2020 will require it.
What makes people LOVE a product or brand?
What sustains that love?
These are the questions Accenture Interactive and Fjord set out to answer when embarking on The Love Index study.
The Love Index 2016 is the first annual report that measures brands – and in particular, the services and experiences they offer – on a 10-point scale across five F.R.E.S.H. dimensions plotted on a pentagon
Similar to The Tides and Times of Luxury Retail (20)
Union of Humans: The Future of the Millennial Generation in the Age of Automa...Ogilvy
It’s not always fun or easy to understand an automating, fissuring, hyper-globalizing economy. It’s not always comfortable to consider that decades-old safe and sage advice (“Go to college!”) might become totally obsolete—if we don’t move quickly to curtail the privatization of our primary schools, and/or colleges fail to modernize their offerings.
However with great crisis comes great opportunity, and Millennials are well-equipped to handle the mammoth issues before them. They are, after all, the most educated, most connected generation in American history.
So why the emphasis on…unions? Well, we really need them, and Millennials happen to love them. But the automation era will require its own union, of sorts—what we’re calling a “union of humans.”
Point of View on Cambridge Analytica Scandal Ogilvy
Last week the Cambridge Analytica data scandal sparked a widespread privacy debate and put Facebook in the eye of a PR storm. Automatically this raises questions from an advertisers perspective. ‘Should we gear up for an audience decrease and reshu e budget?’ Not really. No advertiser data has been a ected and this is mainly an issue on user level, so Facebook already implemented actions to solidify the privacy of its users which is a bene t for advertisers too.
According to a Google Temasek study, e-Commerce sales are slated to hit US$88 billion in the next 8 years. The entry of Amazon and Alibaba in the Southeast Asian e-marketplace is further proof of the e-Commerce potential in this region. While this provides plenty of opportunities for businesses to grow – there’s also more competition than ever. Launching a successful e-Commerce venture takes more than connecting a valuable product or service with the right audience. This white paper outlines key principles and strategies to help you ride this wave and come out on top.
2018 Prognostications For The Year Of The DogOgilvy
For the year ahead – 2018 to some, and the Year of the Dog to others – we share our annual Political, Economic, and Business prognostications for China.
10 Pearls of Wisdom for Working With & Leading PeopleOgilvy
By David Levitt, Former Worldwide President of Learning & Development, recently retired from Ogilvy after 45 years.
This is an excerpt from his retirement speech.
For Goodness’ Sake: Satisfy the hunger for meaningful business Ogilvy
For Goodness Sake is about transforming businesses into “Purposeful Enterprises.” Business, being the most adaptable of human institutions, is already shifting to encompass the new priorities our global society is setting out, but a full change to purposeful enterprises—enterprises that exist for many interlocking reasons and strive for complex outcomes—will emerge only with great planning and thoughtfulness.
The Digital Social Contract
The Millennials and generation Z together comprise the most engaged, mobile, and enticing consumers of our time, but brands and agencies have largely misunderstood how these coveted digital natives interact.
We have missed a fundamental truth: There is a new social contract emerging—a digital social contract—that, like Rousseau’s original, has been proposed, ratified, and enforced by those it governs—most especially online video creators and their legions of fans who together stand at the apex of the digital revolution.
In Ogilvy & Mather's latest Red Paper, "The Digital Social Contract", Ogilvy's Jeremy Katz and Robert John Davis join with Alta Sparling and Bing Chen from Victorious to uncover the unspoken social rules governing the digital world and explain to brands how to thrive in it.
Brands That Do: Building Behavior Brands
by Susan Machtiger and Jaime Prieto
The importance and meaning of brands is in a state of turbulence. We live in a fragmented media world amidst unprecedented consumer control and content overload. It has become apparent that those brands that do not matter to consumers will soon fade into absolute irrelevance. So, what matters to consumers? How brands behave. Consumers are telling us to stop making empty promises and start acting in new and different ways. In other words, we should be building brands that do things that matter to their customers. Most companies need to rethink how they build and care for their brands. This Red Paper shows them how.
1. Luxury
Retail
T H E T I D E S A N D T I M E S O F
How luxury is metamorphosing in the realm of
changing consumer demands and income patterns.
INSIGHTS
FROM THE
KEYNOTE
“THE CHANGING
WORLD OF LUXURY
RETAILING”
COMPILED BY
ASHLEY MACKEL
AND SHASHWITH
UTHAPPA
OGILVY &
MATHER
2. THE CHANGING WORLD OF LUXURY RETAILING
P
ERHAPS EVEN MORE THAN some other
industries, the world of luxury retail has had
to evolve with the changing times. While a
generation of folks with expendable income
presents an incredible opportunity, many luxury
brands are finding it difficult to tap into this new,
youthful consumer base. DAVID SELINGER, CEO
and Co-Founder of RichRelevance and MATTHEW
WOOLSEY, Executive Vice President, Barneys New
York discussed the changing landscape of luxury
retail at the recent National Retail Federation:
3. THE CHANGING WORLD OF LUXURY RETAILING
DEEP
POCKETSTHE US CONSUMER MARKET for luxury is the world’s largest, and it is a
melting pot of brands at consumers’ fingertips, consumers whose high
disposable incomes increase their purchasing power. With scales tipping
in their favor, brands need to effectively communicate and engage if they
are in for the long run. Constant feedback and social listening in the digital
age is imperative. The most engaged consumers online are the same
customers who spend the most in the store and having continuity for the
consumer across platforms will help in retaining them. It’s about continuous
business performance through every part of the customer journey.
1
4. THE CHANGING WORLD OF LUXURY RETAILING
THE MOST
WANTED
GENERATION
TEN YEARS AGO, brands used to be able to segment
customers in 2 to 3 categories, but now a singular
definition of a luxury customer is being shattered. The
new luxury consumers are younger, better-informed,
ethnically diverse, tech savvy, more educated, have
household incomes more than the national average,
and lead complex multi-tasking lives. At 80 million
strong, Millennials are about 25% of the total U.S.
population, outsizing Gen X as well as Baby Boomers.
A new cohort called HENRY’s (High Earners Not Rich
Yet) should be on the constant vigil of luxury brands.
They have the ability to cut through the marketing
clutter and find true connections. Building brand
credibility is crucial to influencing this category.
An interesting and meaningful
development around these new young
consumers is that they’re not obsessed
with ownership. Millennials are renting
plush apartments at exorbitant amounts
rather than owning one, using Rent the
Runway for a perfect evening dress,
or Uber for a drive around the city.
The world shouldn’t wonder about
whether Millennials will ever engage,
but rather anticipate how and where
they’ll choose to do so. Millennials are
82% more likely to use their phone
than speak with a sales associate,
which means that brands must change
their inspiration, story, and discovery
process before they enter the store.
Brands needs to understand how to
catch their attention and what added
value they can bring to the table.
2
5. THE CHANGING WORLD OF LUXURY RETAILING
THAT F WORD:
FUNCTIONALMILLENNIALS are often looking for more than just something that’s
shiny and new, so luxury brands need to adjust accordingly. It’s
certainly easier to justify a purchase that has utility, rather than one
that’s merely amusing. In luxury parlance, this is functional luxury and
this will redefine what luxury means. However, there is that need to
express your own lifestyle while whipping out the credit card, and new
American luxury brands are addressing this through customization.
3
6. THE CHANGING WORLD OF LUXURY RETAILING
THRIVING
IN THE
DIGITAL
STORMNO BRAND IN ANY INDUSTRY can afford to ignore the
new realities of our digitized world, especially luxury
retailers. Technology is both increasing customer
touch-points and providing unique experiences
through personalization, enhanced through data.
The luxury goods market is using big
data technologies to combat Amazon in a
different way. Barney’s uses big data tools
to gain a better perspective of who their
customer is, rather than using them in a
product-centric manner like Amazon.
Mobile remains incredibly important as
well. Selinger shared his observation on
how a mobile site was launched to put out
new merchandise right after the Burberry
Prorsum Show, which represents how
quick the continuity of the consumer
journey needs to be. He added that 2015
is the first year that we can really use data
to glean the most segmented and direct
luxury consumer and establish a one-
to-one relationship with a customer.
Predictive analytics can be used to identify
patterns and profiles of the most profitable
customers, perform smart segmentations and
execute automated marketing campaigns
to not just drive sales, but increase
inspiration through enabling discovery
through personalized editorial, product,
and search. Brands need to get smarter
at creating unparalleled experiences for
customers more quickly if they want the
industry to go from tepid to blazing hot.
4