Why Do Luxury Brands Take Their Positions And Embrace Digitalization?

As we all know, luxury goods are not only physical objects, but also sense of experience and ritual.

Therefore, the luxury electronics business was once considered a "never to be blown up assembly", and even many luxury brands refused to sell online. But now the luxury brands have realized that the key to success in the new consumer era is whether they can resonate with consumers, and digital interaction is an important way.

Recently, the Belgian high-end luxury leather brand Delwa (Delvaux) announced that it would issue a special series of salute to the famous Belgian surrealism artist Rene Magritte. In order to help the series better landing in the Chinese market, Delwa's WeChat Mini program will be launched in from May 9th to 23rd this year. Delwa will provide the consumer with the experience of the electricity supplier for the first time through the WeChat Mini program, and supply the series handbags and small leather products in limited quantities in the small program.

It is reported that Del worth was founded in 1829, and is one of the oldest high-end leather bag brands in Europe.

A bag sells at least forty thousand or fifty thousand yuan, which can be regarded as the top luxury brand.

And such a brand also began to promote with the help of e-commerce, which also indicates that the pattern of luxury goods industry is changing.

In fact, before del Wo, many big names began to experience waterline.

For example, Chanel (Chanel) frequently set up digital flash shop; Cartire (Cartier), Bvlgari (Bvlgari) and dozens of other brands gathered to develop WeChat small program; Dior (Dior), Gucci (Gucci) and other brands entered the shaking platform.

As digital marketing is being valued by luxury brands, the guidance and pformation of online traffic has also become the path for luxury brands to expand their customers.

So why do luxury brands begin to value the Chinese market and put down their attitudes to embrace digitization?

Bain, a consultancy, recently released the China luxury market research. Last year, the overall sales of China's luxury goods market continued its record breaking growth in 2017, reaching a 20% growth rate for second consecutive years.

The study points out that despite the strong growth of China's luxury goods market, there are huge differences among different brands for luxury brands.

As incomes continue to grow, Chinese consumers spend more and more on luxury goods, and their tastes become more picky.

Prior to this, Bain Bruno Lannes, a global partner and author of the company, once said that China's luxury market is like a powerful machine. The four growth engines cooperate with each other, and the horsepower is fully opened, providing a continuous impetus for the booming development of the luxury industry.

These four growth engines refer to the "millennial generation", "consumption reflux", "digital development" and "rapidly growing middle class".

"Compared with other countries in the world, the average age of Chinese luxury consumers is even lower.

The millennial generation is still the driving force for the development of China's luxury market.

Bruno added.

The millennial generation likes online shopping, and they like to find resonance through social software.

Because of this, if luxury brands are not eliminated by the market, they must adapt themselves to the life and shopping styles of the millennials and actively seek digital development.

Louis Vuitton, art director of Virgil Abloh, once said, "I regard myself as a citizen of the world, and my task is to plate a brand with 164 years of history into modern language." Louis Weedon,

It is undeniable that in the past two years, the cooperation between luxury brands and street tide cards and signing up with internet professionals is a manifestation of brand younger.

Therefore, online and offline dual channel operation is the performance of luxury brands in line with the current retail situation, but behind it there is a deeper marketing logic.

In digital layout, luxury brands seem to pay more attention to consumers' shopping experience.

The digital penetration of the luxury industry also comes from raw materials procurement, design and production, marketing and channel sales to every field of after-sales service.

Luxury brands attract new customers through new platforms, and have reached the goal of bringing traffic to stores or official websites.

Luxury digitization has become a trend. What impact will it bring to luxury stores?

Insiders said that after the completion of the digital revolution, some of the sales of luxury goods will be completed online, and the role of the physical store will be adjusted accordingly.

Apart from sales, more interactive ways and more experiential marketing methods will become the focus of attention of offline stores. The proportion of new product launches, product manufacturing and display, and dissemination of brand knowledge will increase in the physical shops.

In the new consumption era, people's cognition has been completely changed. Luxury brands can no longer grasp the hearts of consumers from a single channel.

In the digital pformation of luxury goods industry, old brands like del worth have to adapt to the trend.

Author: Chen Qing