Merriam Webster(date) defines Luxury as ‘a condition of abundance or great ease and comfort, adding to pleasure’. Luxury fashion is defined by the authenticity and exclusivity of products, although the concept and definition of sophistication may vary from one brand to another. Brands with heritage of producing luxury goods such as Chanel, Gucci, Louis Vuitton, Prada are often described using terms like Brand DNA and House. Until the 90’s, the global luxury market was very niche and focused on the wealthy, sophisticated consumer. During the mid-late 1990’s a huge growth was observed in luxury market due to emerging groups of LVMH, Kering (acquired Gucci Group in 1999) and Richemont. Luxury fashion today is not limited to classic silhouettes of the designer houses or couture as the concept has been extended to accommodate ready-to-wear and streetwear too. With events such as the majorly successful but controversial appointment of Virgil Abloh at Louis Vuitton, the necessity of redefining was felt by both members of the industry and brand loyalists. Opening the boundaries to what sophistication is has left us with a question ‘is luxury fashion today only based on the price point?’ In this marathon to maintain exclusivity, existing luxury fashion brands need work harder and deliver top quality customer service along with their luxury products.
Many of the luxury brands experienced a need to rebrand to adapt to the changes in the market and to reproduce their image in the eye of the customer including Balenciaga, Dior, Givenchy and the most recent- Burberry. In 2017, a new emerging luxury goods consumer from the East was repetitively discussed. Let us look at the luxury fashion market geographically. Termed as FFI- the fashion-forward immigrant by LSN: Global (Marty Hurwitz, 2018); this consumer was observed to be from countries such as China, Japan, India, United Arab Emirates and more. The growing importance of non-western markets for the luxury goods industry is seen to be supported by supply chain leadership, technological innovation, international investment and adaption of the omni-channel marketing strategy. This scenario is the result of rising income levels and aspirations that led to a growing segment of potential luxury buyers beyond traditional luxury shoppers. This leads us to a conclusion that markets in the East are going to act as the highest revenue generators in the future. According to McKinsey Fashionscope, Greater China in 2018, for the first time in centuries overtook US as the world’s largest fashion market (The State of Fashion Report 2019). Due to major movements such as Brexit and reducing economic gaps between global markets, luxury brands need to take into consideration the parallel effects of the same on sales and consumer behavior. As re-ownership emerges into the fashion industry, luxury brands too must consider the potential loss of direct consumers and act up re-sale strategies. Looking at the future of luxury fashion retail, the increasing spending capacities and range of choices serves in the interests of the brand, in both good and bad ways.
Some of the luxury brands such as Tiffany and Co. And Kenzo have redefined the meaning of luxury and have taken a millennial approach by normalizing the idea of luxury. Growing with the concept of exclusivity, brands are gaining more and more popularity with younger consumers. Looking back at the growth of blogger/influencer sector, luxury brands must now invest in the next step of blog promotions with AI. While creativity is in constant demand with any forms of marketing delivered by the brands, they should investigate more about adapting the omni-channel approach to accurately influence and engage with their customers. The life of these consumers must be critically analyzed from students travelling to the West acting as potential consumers to more social media users willing to own luxury items purely for establishing a sense of exclusivity. Simultaneously, demand for inclusivity will keep on growing, making it almost impossible for brands to turn a blind eye towards such issues. Many luxury brands are still running under the assumption that such ethical or environment friendly demands of consumer can be neglected due to which they face a lot of backlash. This affects the overall brand image leaving behind a stain of controversy that is often taken seriously by consumers. Not only will brands be required to consider virtual issues of cultural appropriation, diversity, individualist experience but also will be expected to deliver the best customer services both in-store and online. And this can be achieved by adapting the Omni-channel marketing strategy.
According to Bain & Co., millennial and Gen Z will account for 45% of the luxury market by 2025 (Smith, 2018). This shows a potential growth for the brands for which they need to take certain new roads to satisfy the customer. As we have seen that Omni-channel being the advanced version of the Multi-channel approach is a step towards providing customers with quality service and build a brand community. With the use of multiple media platforms that work together in harmony, brands will experience higher sales and long-term relationships with the consumers. With the ever-growing competitors at various levels in the industry, luxury brands should adopt the Omni-channel approach to enhance the sense of exclusivity, experience and individuality among both existing and potential customers. The process of implementing the strategy is a long-term task. But faster the adoption of the strategy, faster will the brand see the future of luxury market. This will help them to restore the meaning of luxury, deliver their brand image efficiently and be approachable to younger customers. The implementation of the omni-channel strategy is comparatively easier for luxury brands as their marketing budgets are higher and growth in sales is promising.
Books:
Okonkwo, U 2007, Luxury Fashion Branding: Trends, Tactics, Techniques, Palgrave Macmillan Limited, London. Available from: ProQuest Ebook Central. [4 December 2018]. Chapter 6 and 7
Jackson, T. & Shaw, David 1947 December 17, 2009, Mastering fashion marketing, Palgrave Macmillan, Houndmills, Basingstoke, Hampshire, [England]; New York, New York.
Articles:
“4 Important Differences Between Multi-Channel & Omnichannel Marketing.” Emarsys, 3 Oct. 2016, https://www.emarsys.com/en-sg/resources/blog/multi-channel-marketing-omnichannel/.
“Research – Think India Think ‘Connected’ Retail 2017: Omni-Channel Retailing the way Forward”, 2017, Shoes & Accessories, .
“Shopper Marketing: Omni-Channel: More than just a Buzzword.” Point-of-Purchase, 10 Nov. 2015. General OneFile, http://link.galegroup.com/apps/doc/A434525621/ITOF?u=aib&sid=ITOF&xid=fbad055a. Accessed 20 Dec. 2018.
Jackson, H. (2018). The Pros and Cons of Omni-Channel Marketing. https://www.hitsearchlimited.com/news/the-pros-and-cons-of-omni-channel-marketing-id0139. Accessed 3 Jan. 2019.
Chrisos, M. (2018). “3 Benefits of Omni Channel Marketing to Boost Revenue.” Techfunnel. [online]. Available from: https://www.techfunnel.com/martech/3-benefits-of-omni-channel-marketing-to-boost-revenue/. Accessed:
Hurwitz, M. (2018). ‘Why the Luxury Industry Can’t Ignore Immigrant Consumers.’ Luxury | LS:N Global. [online]. Available from: https://www.lsnglobal.com/opinion/article/23224/why-the-luxury-industry-can-t-ignore-immigrant-consumers. [Accessed 6 Jan. 2019.]
Smith, K. (2018). The State of Luxury Fashion Today. EDITED. [online]. Available from: https://edited.com/blog/2018/06/the-state-of-luxury-fashion-today/. [Accessed 10 Jan. 2018].
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