Luxury fashion brand – marketing vision

Fashion is constantly changing – even if it is inspired by the fashions of the past, breathing in the old decades, fashion is constantly evolving and moving forward. In addition, their traditional and digital marketing strategy is also changing. In the past, the luxury brands intended to slowly change their marketing strategies, however, the COVID-19 pandemic has prompted them to change drastically to meet the market needs.

The Covid-19 pandemic has severely affected the economy in general and the fashion business, especially high fashion. Luxury brands are inherently not considered essential products and are not prioritize when the buyer’s wallet is “scanty”. The future of the fashion industry will depend heavily on tourism. Border closures and the spread of the virus have put the world tourism industry into hibernation and put sales of luxury goods often bought by foreign tourists sharply decreased. It can be seen that when the “storm” of COVID-19 hit, shopping centers, service and fashion store chains had to close continuously during the outbreak of the pandemic. Therefore, e-commerce promotion and online sales consulting are considered as important transformation measures of fashion retailers, not only during the epidemic period but also in the current digital era. This blog will predict the future of the luxury brands’ marketing strategies in the next 5 to 10 years.

Shopping online

In the past, the luxury brands think that selling high-end products online would lower their value because their clients cannot feel the products and they cannot provide proper services. But that was before COVID-19 broke out. Nowadays, due to the COVID-19 restrictions in a lot of countries, unnecessary stores have to remain closed and people only can go out to the grocery stores. Therefore, the revenues of the luxury brand chains decreased and they have to take actions to keep the brands’ values. They started selling their products online, many brands such as Chanel, Hermes, Dior and Prada have set up online shopping on their websites. This was a big change that those brands never thought of before. and it turned out to be the good strategies. In the next 5 to 10 years, there will be a lot more items and services will be sold online and it’s easier for customers who live far from the stores. For example, clients can order the home-try-on on the websites and the luxury brands will bring their items to the clients’ places. This is a way of keeping the potential customers (the wealthy customers usually want everything to be private), raise the values of the brands and also produce the luxury services. This is also a best channel to marketing their brand in a traditional way.

Virtual try-on

In fact, some brands are already offering virtual stores to recreate the in-store retail shopping experience for customers. The first brand to mention is Dior. The luxury fashion house has launched a virtual store with a 360-degree view, where customers can walk around and view all the items in the store just like when shopping at a regular retail store. This experience of course cannot completely replace direct shopping, but it also partly shows the efforts of fashion brands. However, in the next 10 years, this service will be popular among the luxury brands and will be expanded, especially in letting customers to try on the clothes virtually or provide an AI models based on their measurements.

Social media

In the near future, Millennials and Gen Z will be the main consumers of high-end products. Therefore, brands began to make this group of customers their target audience and shifted as well as improved their marketing strategies to quickly adapt to the market. For the young generation who worships the convenience, social media platforms or digital experiences are the effective approach. While high-end brands always need to enhance the quality of direct customer experiences, the development of technology has contributed to making it easier to optimize these experiences on a variety of platforms such as: Facebook, Instagram, Twitter and Tiktok without losing the luxury part of the brand. The luxury brands will focus on the interactions on the media platforms more than nowadays. The influencers will also be a part of their digital marketing strategies and they will cover the social media platforms. Gucci is proud to be an pioneer in the online shopping on the social media. Their products are also distributed and controlled at high-end retailers and e-shopping platforms such as Farfetch, Net-a-Porter, etc., helping the brand to maintain its position as one of the leading luxury brands which has the most ebullient online activity. This change helped Gucci’s e-commerce finance fund in the first quarter contribute 6% to the brand’s total revenue. In the next 5 years, a lot of luxury brands will follow this marketing strategies.

Experience at traditional stores

The flourishing online experience makes luxury brands wonder: Are physical stores still necessary and how to optimize the effectiveness of these retail branches? The impact of the epidemic has caused the heat of bustling commercial centers to decrease slightly, but it is expected that 75% of sales in 2025 will still take place at direct shopping points.

On the other hand, luxury brands also need to consider focusing on innovative flagship stores or direct sales instead of spreading the points of sale. Flagship store is the “vedette” of each brand, plays an important role of conveying the brand’s image and values. Although it is not mainly for sales purposes, it is advisable to improve the space and brand identity. Since then, the physical point of sale can bring a prominent image and cohesion to customers, especially when consumers are increasingly interested in the experience when shopping. An example of the experiential retailing trend is Hermes. The brand of legend Birkin bag created a historical museum scene in its stores in 2016, as well as a series of pop-up stores with a laundromat concept in four major cities: Strasbourg, Amsterdam , Munich and Kyoto. In these pop-up stores, customers can either dye their own scarf or choose for themselves a limited edition scarf designed specifically only in these pop-ups.

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