MARKETING // EDUCATION // LIFESTYLE // BUSINESS // DESIGN
7 Trends That Will Mark the Luxury Industry in 2019Most likely, we’ll be seeing more luxury trends emerging not only in the next year but also in a more long-term perspective. Thus, in 2025, the turnover of this industry is expected to reach $ 439,665 billion. But despite the optimistic outlook, the luxury industry is facing various challenges as it is evolving. Thanks to the Digital Revolution, luxury marketers are constantly looking for new consumers. Millennials and Generation Z are the prime target of gigantic business conglomerates, such as LVMH, Richemont, and Kering, as well as all kinds of small businesses. How is the Luxury Market Structured?The luxury products market is divided into several categories:
Depending on the area analyzed, the most exclusive industry on the planet has some very different characteristics. In 2018, domestic consumption in the United States — the number one luxury market in the world — increased dramatically, especially due to shoppers from Europe and Asia. When it comes to the Eastern Asiatic region, the locomotive of the industry here is China, which is followed closely by Japan. In Europe, confidence indicators remain positive, with France and Swiss watch-making industries steadily recovering. Domestic consumption and shopping tourism have bounced back a little in the United Kingdom, while luxury tourism in Spain and the Netherlands is steadily rising. In Africa, the luxury industries of 'two big black hopefuls' — Nigeria and South Africa — are growing slower than expected. The same goes for Iran and India, while in the UAE it is showing signs of steady recovery, with the focus being placed on increasing attractiveness of shopping tourism. In Latin America, Brazil has the greatest growth potential (thanks to the efforts of its newly elected president), while Mexico’s luxury market is considered the largest in the region. Colombia is slated to become a worthy contender over the next few years if it plays its cards right and exploits the potential of exports value proposition on the global market. In this mostly positive scenario, somebody unexpected is trying to get a foot in the door. We’re talking about North Korea, which is already importing luxury products from China. Indeed, they also like high-quality things! Having made an initial analysis of the latest trends that will determine the evolution of the Luxury Sector during the next year, we have been able to single out some of the most promising ones. Preserving Exclusivity in the Digital EraThough with some delay, the majority of luxury brands have already implemented (or are working on it) some digital processes. In this sense, the main challenge they face is to maintain the exclusivity of their value proposition by using various communication and marketing channels. Increase the Number of ClientsYes, top executives of the luxury sector companies have the same prosaic concern, which is acquiring more clients. The most exclusive brands are focusing on seducing not only millennials — who already have sufficient purchasing power to buy high-end products — but also Generation Z, - the consumers of the future. However, in terms of engagement, young people aren't going to make things easier for major brands. The trouble is, some of them haven’t changed their target audience for years. The new generation is demanding — they want to be heard; they are knowledgeable, individualistic, and critical. They demand sustainability and place a lot of emphasis on personalization and integration of online and offline channels. The most tangible physical evidence of these requirements is exactly what is available in the stores, which are ceasing to be 'brand museums' and turning into experiential places where consumers interact with brands and themselves. Robotization, VR / AR, AI, E-commerce, and BlockchainAccording to some people, in a few years, we will communicate with robots more than we are doing it with people now. What is undoubtedly clear is that there are already developed marketing tools and procedures that can predict the behavior of the potential consumer and anticipate their wishes. On the other hand, it is expected that Blockchain is key in the fight against cheap imitations of luxury products, especially in the art segment. Enhance CreativityBy definition, luxury should be associated with creativity and innovation. It is expected to generate memorable emotions that can impress and arouse envy. The establishment of partnership agreements between companies in the luxury sector represents fertile ground in terms of the generation of new value propositions that will continue to be successfully exploited. Evolution of the Chinese ConsumerThe Chinese luxury customer can be termed as “voracious” (from the consumption viewpoint) and highly aware of the most exclusive products and services in the market. They have long ceased to be “monolithic” buyers who were only interested in a catchy logo. They are extremely demanding and critical when it comes to luxuriousness. For them, personalization is already considered from the perspective of luxury, and that represents a great opportunity for 'niche' brands. PersonalizationThe 'unique' concept is embedded deep within the DNA of any product or service that deserves to be classified as luxury. Quite a few brands are increasingly manufacturing limited editions of their products, developing unique production processes, and using digital tools to offer consumers the possibility of designing their own 'dreams'. Green LuxuryThe luxury industry of the future will either be sustainable or just won't exist at all. Obviously, that statement holds true for any other sector. However, the luxury industry — because of the benefits and misgivings it generates amongst most consumers — must provide 'an example' for others. The fact that some fashion brands have already dispensed with the use of animal skins is symptomatic of a 'green luxury' trend that, fortunately, has come to stay.
1 Comment
10/20/2022 03:33:04 am
Very nice blog! Everyone should indulge in a little luxury from time to time, and we’ve been helping premium brands reach out to many different audiences with a dream to fulfil.
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