How Can Luxury Brands Take Advantage of the Digital Revolution?
No doubt, the business landscape has changed significantly as a result of the digital revolution, thereby transforming how brands reach out or connect with their customers and potential customers, and how these customers, in turn, interact with the brand. Having an online presence has become a necessity for brands to foster effective customer relationships and engagement. In this regard, luxury brands are faced with a huge challenge, as they normally differentiate themselves through experience gotten from the brand rather than price.
Luxury goods cover a range of products; from watches to beauty products, cosmetics, fragrances, fashion, and drinks. For the high-end markets, consumer buying decisions are often influenced by brand reputation compared to price or product quality. For instance, luxury advertisements often appeal to emotions by either featuring a celebrity or by depicting an enviable lifestyle — rather than selling the value the product gives the consumer.
Currently, venturing into the luxury market poses a difficult task for new brands as it entails building trust with the knowledgeable and discerning audience. What this implies is that the luxury market has been dominated by a few established brands, and most of them have been around for a good number of years.
What Can Be Done to Help Improve Digitalization in Business for These Brands?
Embracing digitalization has been a slow process for the luxury market due to perceived threats by various online channels. One of the major fears is losing control over proper brand communication and brand reputation. As these brands continue to slowly gravitate towards embracing digitalization; they need to understand that online customer engagement goes beyond delivering digital content of the brand but also conversing with the customers. They need a sound understanding of how native e-commerce sites function — where online shopping becomes more relevant than the traditional walk-in store.
More so, with the percentage penetration of smartphones almost at 100% for luxury buyers in major markets, mobile device integration for brands looking to add value to their customer experience cannot be underestimated. Digital content for luxury brands must be relevant to their target audience, inspiring and also connect with them on an emotional level. Preferably, a tailored approach towards every customer would greatly benefit these brands.
Whеn реорlе рау fоr thе luxurу рrоduсtѕ a fоrtunе, thеу wаnt tо hаvе unfоrgеttаblе еxреrіеnсе ѕtаrtіng frоm ѕеаrсhіng fоr thе рrоduсt until fіnіѕhіng аftеr ѕаlеѕ ѕuрроrt аnd соmmunісаtіоn. Thаt brаnd whо іnnоvаtеѕ аnd оffеrѕ ѕоmеthіng nеw tо thе сuѕtоmеrѕ, аnd сrеаtеs a “wоw” еffесt іn еvеrу customer jоurnеу stage, wіll dеfіnіtеlу ѕtаnd оut оf thе mаrkеt.
Wе аll ѕее a grоwіng роwеr оf thе dіgіtаl unіvеrѕе, nоw аll luxurу brаndѕ ѕhоuld wоrk оn thеіr dіgіtаl ѕtrаtеgу. Thе “rіght” dіgіtаl luxurу ѕtrаtеgу dіffеrѕ fоr еvеrу brаnd ассоrdіng tо іtѕ vаluе рrороѕіtіоn, but whаt’ѕ сlеаr іѕ thаt іt’ѕ nо lоngеr juѕt аbоut a bеаutіfullу dеѕіgnеd аnd uѕеr-frіеndlу wеbѕіtе оr еffесtіvе bаnnеr аdѕ. Thе mоѕt ѕuссеѕѕful luxurу brаndѕ аrе thоѕе thаt buіld a соmреllіng оnlіnе рrеѕеnсе, еngаgе аnd іnfluеnсе соnѕumеrѕ thrоugh tаrgеtеd uѕе оf mаrkеtіng ѕоftwаrе аnd fосuѕ оn a саrеfullу сhоѕеn ѕеt оf dіgіtаl-реrfоrmаnсе mеtrісѕ.
Unfоrtunаtеlу, thе luxurу ѕесtоr іѕ lаggіng bеhіnd thе rеѕt оf thе retail wоrld whеn іt соmеѕ tо аdарtіng tо a dіgіtаl futurе. This is where LuxTag® can help luxury brands to improve their progression into digitalization.
As a digital solution provider, LuxTag helps to solve various problems which companies are facing nowadays. Our service comes with four main features — anti-counterfeit, anti-theft, track and trace, and business insights, these traits create a more secure and transparent market for brands and their customers. LuxTag uses the innovative NEM blockchain technology which enhances speed, security, and scalability throughout the whole process. Therefore, LuxTag improves a brand image and helps to naturally implement a digital transformation which is an excellent way for luxury brands to kill two birds with one stone.
Luxtag Solution for Luxury Brands
Luxtag gives you control over your business and helps secure your assets with NEM Blockchain technology. Luxtag provides you with a complete solution to effectively manage your products, supply chain, and customer relations. Being a part of your business means you can channel your resources to where it matters most.
At Luxtag, we work with our clients to understand their needs, we brainstorm to provide a solution until our clients are satisfied, and we guarantee a memorable experience with us! We make your business our business!
Take advantage of our services and watch your business increase in profits, customer loyalty, brand reputation, conversion, and acquisition.
®“LuxTag”, Trademark registered.