What Luxury Brands Have Learned from Surviving COVID

Within the last year, many brands in luxury retail have had to make some brave and radical adjustments. Here are some top strategies luxury brands are using to help create success in a post-pandemic world.

Within the last year, many brands in luxury retail have had to make some brave and radical adjustments. For many, developing new strategies for success meant exploring innovative avenues to reach fresh markets and drive sales. 

Even in a worst-case scenario for luxury, as well as premium, brands, we’ve seen luxury brands thrive and persevere under harsh circumstances. It is reassuring to see that during COVID, many companies found some positive lessons to be learned.

Here are some top strategies luxury brands are using to help create success in a post-pandemic world.

Finding Then Leveraging Unique Growth Opportunities

The physical marketplace for luxury brands has taken the brunt of the pandemic. While business is slowly returning to luxury brick-and-mortar locations, it might take until 2022 or longer for business to return to pre-pandemic levels. 

We’ve seen many luxury brands’ products pivoting toward the pre-owned market and the sharing economy to take advantage of the previously unrealized growth potential of those spaces.  However, that does not benefit most brands directly. 

For other luxury brands, the need to pivot depends on what they’re selling. Since luxury travel has taken a hit, luxury car companies – advertising an alternative to travel, with more personal freedom – have reaped the benefits. In fact, in 2020, Lamborghini had its best September of all time for sales

Further, because of the almost complete drop-off in travel and tourism, many luxury brands quickly adapted by focusing more on local markets

All of these success stories are the result of either a quick shift in advertising or identifying and focusing on smaller or lesser-known marketplaces.

Cultivating More Intimate Customer Relationships

It will be interesting to see how these brands fare in these same markets, or with similar messaging when the pandemic is over. Especially since many experts are predicting that once markets open more, consumer spending and customer demands will shift again, perhaps even further into uncharted territory.

This highlights one of the most valuable lessons from the pandemic: understanding the needs and desires of luxury consumers.

Many luxury brands are now taking a closer, more customer-specific approach to market analysis, helping them to stay better informed on shifting trends and behaviors. They’ve taken innovative approaches with an increased investment in analytics, and rolled out initiatives to improve personalization in their marketing efforts, services, or products. 

Gucci set an incredible example for the industry with a recent innovation. The fashion giant’s DIY service lets customers personalize their tote bags, knitwear, and sneakers using letters in different materials and colors. There’s also Burberry Bespoke, where customers have their own style, fabric, and color options for their trench coats. 

There’s nothing that says luxury quite like customized clothing that allows customers to express themselves.

Recruiting Expert Management and C-Suite Executives for Luxury Retail

Especially during these turbulent times, luxury retail brands need the very best management and C-suite level executives who can:

  • Train and empower their staff to efficiently sift through aggregate consumer data and then clearly interpret that data in ways that can inform business decisions.
  • Lead their team and guide your business to quickly adapt and pivot to alternative markets and messaging that yield results.
  • Influence others to get on board with bold business decisions and innovative strategies.
  • Find hidden growth opportunities when other doors are closed. 
  • Stay connected with customers and follow their lead to provide personalized products, services, and brand experiences.

This is precisely the caliber of talent we source and recruit for our clients. Because we only work with the most forward-thinking, highly adaptable talent in the market, our clients are able to innovate and grow their businesses. Even during unpredictable and shifting markets.

If you are looking for the next generation of management and C-Suite experts in today’s luxury retail space, contact The Bowerman Group today.