In the year 2020, considering the pandemic almost 91% of the industrial sector was engaging in some sort of digital initiative and approximately 40% of the organisations successfully gave digital transformation to their business. Around the last fifteen to twenty years the retail landscape has been through large-scale changes as a direct result of the rise of technology. Especially, with the coming of Industry 4.0 when everything is opting for a digital makeover we have taken a closer look at the brands that have changed the way to boost their sales, marketing and branding strategies. It’s no surprise that the luxury brands have been at the gentler in accepting the digital transformation.
Digital Opportunities in Luxury Retail
The notion that luxury shoppers will always prefer a physical shopping experience with individualized customer service (to get all their money’s worth), has now been dared. While the rising importance of digital luxury is encouraged mostly by a generational shift, this isn’t just about millennials: nearly all luxury buyers have eagerly embraced the digital lifestyle.
There are many sides of customer experience that luxury brands can enhance using digital means. In this way, there are three fundamental areas on which brands should be concentrating to influence the benefits of digital: brand engagement, customer insights, and footprint. Let’s go deeper into the discussion and have a look at the various opportunities that the brands have in order to go for a digital transformation:
New technologies offer great chances to reach customers more often and efficiently, which apart from driving awareness helps to nurture the emotional benefits associated with luxury products. Besides the big campaign creatives, brands have a lot to acquire from producing additional assets that are much faster and less pricey to produce. A meditated brand engagement approach will fulfil customer requirements and helps to reinforce both the brand and its relationship with its audience. Read more about how creating your own digitized brand can help you in various ways in the link given below:
A specific tactic has always been a vital part of the luxury experience. Now, with help of digital technology, especially; considering the wave of Industry 4.0, brands can get an even better understanding of their clients through tracking their online gestures. Thanks to an effective data strategy that gathers and examines customer information, brands will be able to build an in-depth picture of their customers’ online identity while feeding business strategy. The gathered data can be used to create a trend analysis, build customer groups or come up with a hyper-personalised experience for customers in the form of detailed content. Platforms like Google Analytics, Google Tag Manager are the topmost tools recommended for tracking the footprints of your customers.
Relations with agencies, technology partners and media suppliers lets luxury brands take full benefit of digital amenities. These carefully built relations will also help the brand to access services and resources that can bring a sense of luxury into the online arena. Devoting in partners who truly appreciate the brand’s tone of voice contributes to the better message of the overall brand vision. Strategic partnerships that complement in-house capabilities can be of great support in creating new and exciting customer experiences.
Digital Revolution in Luxury Retail
Digital alteration makes it simpler to implement organizational change, manage reputational dangers and close the spaces between customers’ anticipations and the service and involvement they receive. For a fashion brand specific, this means re-imagining how shopping in a digital world should play out. A key enabler for success will be to guarantee a consistent consumer experience that exemplifies physical, virtual and expressive aspects, from communication to conversion and beyond.
All these three approaches, if applied correctly, can drastically grow a brand without causing any damage. In a world of growing complexity and unpredictability, companies need to increase their attentiveness. The brand itself and its status have become the most important commodities to defend, as it can take several years to build a successful brand, but only a short time to break it. When talking about the digital revolution, it is essential to understand that digital is no longer only a sales or a communication channel. It has become a main element of the value equation that brands need to master.