An article was written by Jukka Aminoff author of Luxury, Buying Revolution, and Social Selling Luxury
The internet and digitalization have created a new boom for the luxury industry because website technology has developed rapidly by providing the possibility to showcase pictures, videos and other visuals with high quality. The internet provides a cost-efficient way to raise global awareness and brand lovers have a low threshold to approach various brands.
Social media has created an opportunity to publish own content without the use of expensive middlemen. Instagram is one of the main drivers of global marketing and sales because it provides a rich format channel to publish pictures and videos. Luxury brands are not the only ones who are publishing luxury content but individuals, social media influencers, who are giving important recommendations because word-of-mouth is known to be the best driver for sales. E-commerce is growing but an overwhelming majority of luxury sales are coming from brick and mortars because luxury buyers want to receive full customer experiences.
Expansion of globalization has also opened new lucrative and growing markets such as Russia and China. Chinese consumers are extremely important for the industry because they account for one-third of the market share. The global luxury industry is estimated to grow in the future. Therefore, people should not be worried about negative predictions concerning the global economy. In Asia, India, Pakistan and other countries are on the rise and this will create huge opportunities for the industry but also the rise of African countries.
Well-established luxury brands have shaped their collections and advertising to fit the Asian market. This is how important luxury brands see the Asian market by offering localized collections. We have seen cultures collide, even scandals, because of cultural misunderstandings. But accidents happen as a part of learning processes.
Things are going well also in the West because of young generations, especially Millennials and Generation X, are interested in luxury. We have seen bold collections coming from Gucci, Burberry, Louis Vuitton and from other brands as well, which created wide interest among young generations.
Luxury has always been about creativity and playfulness but today's luxury market requires exceptional branding and innovativeness in order to succeed. There is room for liberal and conservative brands but they must be extremely bold and go the edge. The luxury industry is living its best time in world history and it provides endless opportunities. This also the reason why this year's The Mark Challenge will be extremely interesting because teams can also introduce products as well.
This article was firstly published by The Mark Challenge Luxury And Premium Business Plan Competition, which is powered by The International University of Monaco.