LUXURY INSIGHT

Retaining prestige whilst initiating digital engagement

 Consumer
• How does your consumer define luxury?

• What motivates them to purchase a

luxury item?

• How can you tailor your approach with

this in mind?

• What impact do new digital platforms

and behaviors have on your business?

• Who’s doing it wow, trend analysis and

unique approaches.

• Using this to differentiate.

Positioning a luxury brand within the digital realm can be tricky. To do this appropriately we must take a look
at the consumer, how they perceive luxury, their attitudes towards it and their behaviors within it.
Understanding this is the key as it opens up the insight needed to best navigate suitable and effective
platforms. Utilizing this, we must then look at which brands are capitalizing on it. And finally, by combining all
of the above, we can then create strategies to differentiate, retain prestige and personalize the experience
through emotional and tangible interactions. Your expertise is your brand, our expertise is consumer
behavior and digital technology. Together great things can be achieved.
 Quality and Exclusivity are the consistent elements of
Luxury
Figure 3: Definitions of a luxury brand by gender, July 2011
Base: 4,000 Internet users aged 16+
High quality materials and
craftsmanship
Exclusivity
One of a kind or limited availability
High Price
Label, tag and trademark patterns
Choice to customize the product
Gives the owner status or Respect
A brand/product with celebrity following
None of these
Male Female

What defines luxury? Craftsmanship remains a key indicator of quality to

the affluent A,B and aspirational C1 segments. Label tag and trademark patterns were rated highest in the lower
income C2’s. Asia Pacific rated customization as a key indicator of luxury, and finally the most influential approach
within the 16-24 year old segment, with 38% or 4 in 10 owning a luxury item, is though celebrity affiliations.
 The feel good factor associated with luxury items stimulates sales
Figure 5: Motivations for buying luxury good for self, by gender, Sept 2011
Base: 2,315 Internet Users aged 16+ who have bought luxury goods

As a treat/Indulgence

For the quality/craftsmanship

As a reward

Advanced technical features

For the extra features

To look good impress/others

To set myself apart from others
To keep on designer trends
To fit in with others
Men Women

Motivations for buying luxury goods

Understanding the motivations behind buying a luxury item provides key insight to inspire activities, campaigns
and strategies within marketing, branding and product development. Brands can use these insights in order to
hook in the consumer emotionally. As a reward, what about the accomplishment bag? Or the graduation line,
what about the BA degree bag, or the MA degree bag…possibilities are endless.
 Creative,
Emotional
Content is
key to
Cognitive
Recognition

Establishing long term memory

There is so much noise in our lives, we are constantly bombarded with information. The result is the
cognitive elements of our brains which trigger the memory and recognition processes, switch off and block.
Consumer’s are no longer interested in being sold to, the shift into creative, branding led communication
means we can now utilize more lateral and creative approaches to reach our consumer’s emotional receptors.
Ie: The long term or working memory, enabling an emotional bond which triggers loyalty. Truly engaging
customers. It’s no good just putting things on a screen; the content has to work hard for you.
Trends and Tribes Ecohedonsim, WGSN AW2012.
The future of e-commerce, search and social marketing are now tied to consumers attempting to curate
experiences that represent their personalities and tie into cultural influences. Customers like to talk, share and
converse, and this idea of user-generated content can also be a very valuable tool, if done right it can provide
significant competitive advantages. WGSN, Drapers Retail Conference 2012.
 Prada Real Fantasies/ James Victoria Beckham/Quentin Jones Lanvin, Stop Frame Animation,
Lima Click me Steve Miesel

Lady Dior/ John Cameron Vannessa Bruno/ Stephanie Di

L'Odyssée de Cartier, Bruno
Aveilen Mitchel Giusto

Films: Emotional, Inspired, Engaging

Cartier’s L’Odyssee campaign generated 43million views within the first two weeks of release. Further the
video has been shared by 2 out of 10 users. (SM2) “Though there are many approaches to digital engagement
for the luxury sector, the quickest rising category is video, reporting a 43% growth in 2011, More interactive
initiatives will therefore define 2012. ” WGSN 2012 marketing trends: Top Ten
Tablets
Numerous luxury and high street sectors utilizing tablet and smart phone based applications over the
Christmas period reported seeing increased traffic and high conversion rates. My-wardrobe has seen
400% year-on-year growth in iPad traffic, compared to 70% in iPhones. Further, following Schuh’s launch of
its mobile and tablet-optimised site in December 2011, the company saw more mobile and iPad revenue than
ever before with 24% of online traffic coming from iPads in December - this traffic accounted for 50% of
sales. WGSN, Drapers Retail Conference 2012.
 Evolutions in
Digital
Consumption

86% of web users now use a mobile device while watching TV. In other words, the way we consume television
has changed irrevocably - becoming more about active engagement and interaction across multiple platforms at the
same time than the lean-back activity it once was. Digital Trends Dec 2011, Mintel. The future of TV advertising is
changing from a traditional ad to insightful and factual mini stories that relay ethos. Inviting the audience
to interact in ways that are relevant to both the brand and the consumer. Use Tiffany’s as an example.
They’ve recently launched a social site which gives their audience the chance to interact through the concept of
“What Makes True Love”. Through video, mobile aps, playlists/radio, and using real people, the brand invites
the audience to share their romantic stories and messages and experiences. Driven by one of the most emotional
concepts available, Love. We especially like the “Love is everywhere” location based mobile ap.
Mcom = Fcom When the ‘like’ feature evolves to ‘buy’ the power
of F-commerce and all its capabilities through mobile devices will truly be realized. Shopping and retail as we
know it will never be the same. In the not so distant future the like/brand following will connect to purchasing
platforms through one centralized account and further- link to the consumer’s timeline. Any purchases
made through facebook create a further opportunity to extract value, encourage peer sharing and drive branded
content. Some great examples of sharing branded consumer related experiences is through the use of mobile
ap music applications. Gucci has developed a branded DJ ap releasing play lists, interviews and messages
all relevant to the brand and its audience. Further content, events, songs and stories can be obtained but
they are linked to purchases as well as other participation lead applications. Generating more activity through
all of its digital touch points.
F-Commerce,
the future
It can be hard to determine if the
people affiliating themselves with your
brand through facebook are actually
your consumers. 6,000 likes doesn’t
necessarily mean increased sales.
However last week’s launch of 60
apps that allow Facebook users to
share online activities, including Ella’s listening to:
purchases, helping you to
recognize your actual consumer’s
and extract value. This movement Ella’s purchased:
indicate that social networking sites
are becoming an increasingly
Ella’s purchased:
important way to motivate purchases
through social interactions. WGSN,
Draper’s Retail Forum 2012.

Ella’s received exclusive content by purchasing:

Ask Ella to see exclusive

content (3 shares max)
BUY BUY
Borderless Branding
"The future of digital media in luxury will be based on borderless technology that will unite the physical store
with the virtual platforms and brand experiences” Luxury Retailing, Dec 2011 Mintel. Using numerous
external platforms in your digital marketing mix is still key for driving traffic back to your branded pages, these
platforms act as a touch point athat hook and lead the user to the experience-your site. These pages are the
free passes that allow you to offer VIP backstage access.
Branded Experiences, Differentiation
The images above highlight that the world of luxury retailing is changing. Now more then ever is the time to
understand your consumer’s lifestyle and how you fit within it, utilizing white spaces that provide
personalized experiences, create emotional relevance and unlock commercial opportunity.

Powerful insight comes from taking a multi-perspective, lateral view of the consumer, the competitors and
understanding how to cater to one and differentiate from the other. We like what a lot of brands are doing but the
aim is to build on that and create something unique.
Thank you for your time, I hope some of the
Insight provided demonstrates my focus and
knowledge in within your sector. For more please
don’t hesitate to get in touch.

Ellissa White
Fashion Stylist, Digital PR, Branding
m. 07967233607
e. ellissa.white@gmail.com