In an industry largely defined by traditional relationships and the cultivated quality of products and services, luxury brands have been more gradual in the adoptions of emerging consumer technology. Today, the way luxury brands maintain the tight control over their messaging and brand identities are being disrupted by technology and a desire for more personalized brand experience. But does the luxury industry really appreciate the nature of the opportunity?
Using these technology trends could provide a competitive advantage for those who want to better communicate and connect with their audiences. It’s never too late to start looking at what others are already doing and take advantage of technology, what follows are 3 trends that should be considered in 2018:
The shift Online
The in-person experience was, and remains, a key differentiator for luxury brands with flagship showrooms in major design centers relying on their brand reputation. Then came a new strategic advantage “the internet” providing a way to personalize product offerings, and enter new markets without changing the principles of organizational design and governance. The shift online hosts a list of benefits, such as the ease of access to product information for consumers, using data to keep up with consumer needs, recognizing the shift in the industry before it affects your brand.
Consumers are increasingly gravitating toward digital tools to research and buy products. According to a study compiled by McKinsey & Company, there has been clear growth by B2B companies in how they use digital tools and data to set strategy and grow sales. Consumers crave centralization – a convenient way to manage as much possible with as little effort possible.
Increased Channel Fragmentation
2017 saw a pervasive growth in platform adoptions, shifting the way luxury brands reach their target customers and while traditional media channels are unlikely to diminish in 2018 the opportunities to better engage new and existing audiences will be attributed to the digital channels, recognizing the need to go where the audience is and engage them across various touchpoints.
The luxury trade industry landscape is shifting, organizations need to react to the emerging technology trends and use the huge potential to improve the customer experience. Those that do so will put themselves in a better position to survive and thrive during this age of change.