Pivot Post Pandemic Part 1: Luxury Trends Driving Change
Part 1 of our 2-part series on luxury retail brands shifting in marketing, messaging, and product focus in a post-COVID world.
COVID-related industry shifts significantly impacted luxury brands, which have dealt with the crushing blow of an inactive tourism market.
But the tourism slowdown is only one example of an industry-wide shift in the values and purchasing habits of luxury consumers.
Women and Millennials Driving Luxury-Based Purchases in China
Jingdaily.com reports that 3/4ths of luxury goods in China are purchased by women. Furthermore, the top customer demographic for luxury purchases are millennials, at 65%.
Luxury brands often mistake their primary market as older males since they are more often associated with wealth. But any brand wanting to thrive in the luxury market needs to veer its marketing strategy to millennial females.
This shift means dispelling the notion that younger, more diverse consumers don’t have money to spend. The necessity to market to emerging demographics is especially urgent since brand loyalty is fostered over time. Brands with a strategy for longevity are focusing on drawing in consumers as early as possible.
Focusing on Customer Needs
This report from Luxe Digital indicates large luxury brands turned the beginning of the pandemic into a chance to support their communities.
Hospitals and non-profits received financial contributions from heavyweights like Richemont Group and Ralph Laurent. Armani, LVMH, Matouk and Bulgari all produced sanitizers, hospital gowns, and face masks at their production sites.
These measures were successful, but they were reactive. Expect the top brands to continue pivoting and step up for their client bases in a more proactive way.
These trends are only scratching the surface, and your luxury brand needs to stay ahead of them to thrive in the long term. Bowerman Group can supply you with a staff who can provide practical solutions to leverage these industry shifts.
Contact us today to get started on your employment journey with The Bowerman Group.