Design Trade Opportunity: Capturing the growing Wealthy Class in 2019
The digital revolution isn’t going anywhere and while you might think that the change is slowing, don’t count on it. Current predictions are showing 2019 to be a year of continued digital disruption, especially in the luxury goods space.
The goal of all luxury brands currently is to adapt and meet customers where and how they want to be met. Forbes states that “luxury brands will be challenged to focus on the human aspect of the digital revolution, as they seek to find traction with the younger, digitally-powered consumers that have come with it.”
So how can you thrive and grow in 2019 to capitalize on the digital revolution? Be revolutionary in your customers’ digital experiences while still offering outstanding customer service and a great product.
Growth of the wealthy class
There’s hope for luxury brands and it comes in a 10.6% increase in individuals who have a high net worth. These individuals are characterized as having $1 million in investable assets. The number of millionaires exceeded 42 million in 2018.
The implications for luxury brands is an increase in the audience willing to spend money on the product. But that doesn’t automatically translate into sales. You still have to meet these millionaires where they are at.
Sales of luxury brands online are increasing at a faster rate than retail. Online, luxury brands are seeing a 14 percent increase compared to the 5 percent retail increase.
Luxury business conditions improving
Industry insiders for luxury business are saying that business conditions are better now than they were a year ago. In fact, more than half feel this way, which is a large improvement over the 29 percent that felt this way two years ago.
Digital is finally starting to take root in luxury sales. While previously behind the curve, luxury brands are now starting to see the value digital has to offer. However, interior designers fear that their art will be lost when it moves to digital. However, new technologies invented specifically for designers is helping to bring the digital revolution to the industry.
Preserving the art of interior design in digital
Interior design isn’t as simple as putting a lamp here and a coffee table there. It truly is an art form and one that some designers believe would be diluted by the digital disruption. But tools that empower the designer to highlight its goods and talents in a pleasing digital format are allowing the industry to take a step forward in its digital transformation.
The Decorative Furnishings Association (DFA) recognized the need to focus on e-commerce and held a summit to bring the industry together. After listening to interior designers and other professionals in the industry, DFA concluded that there should be more definition of ideal tools and resources that help move the industry more into the digital age.
DFA’s former president, Chad Stark, believes that digital is the route to saving the trade of interior design. Consumers are increasingly interested in home décor and are taking their research and shopping online.
Luxury brands will face a complicated balancing act in 2019 and beyond as they are forced to navigate potential disruption coming at them from these macro trends. Not all will be up for the challenge.
Are you up for the challenge? Contact Showroom Software to begin showcasing your products in a whole new way and embracing the digital revolution.