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A Number Of Luxury Brand Marketing Costs Overall Downward.

2013/7/20 19:02:00 78

Luxury BrandsMarketing CostsDigitalization

Though many Luxury brand It is prudent for brands to be "digitalized". However, once the decision is made, the investment is not ambiguous, and as soon as its online brand is released, it will be "luxurious" and creativity will emerge in an endless stream: for example, Prada has developed the "smart fitting room", when consumers try out clothes, they will cross the T platform.


Walking on the busiest Gracia street in Barcelona, you will soon be attracted by a unique store. Many customers are attracted by the virtual images at the entrance. There is the whole process of Loewe handcraftsmen completing a Amazona handbag there. Continuing to walk, you can see that the Amazona handbag that changes the colors of each part in the instant is actually making use of the magical effects of light and shadow to create realistic color. It tells people that this handbag can have more than ten million colors.


   Impulsive consumers


The extreme service and novelty experience provided by high-tech stores make customers' impulse spending power reach a new peak.


Unlike other digital flagship stores, which are heavily publicizing and promoting other brands, this is a digital museum built by LVMH under Loewe. The salesperson will not sell too much to you, but will explain the brand culture for you.


Fifteen minutes' walk on Gracia street, and Loewe's flagship store in Barcelona. The same street, a museum, a flagship store is not far away, but the division between the two stores is very clear: the museum is responsible for digital promotion, flagship store is responsible for sales, and sales and culture effective docking. When you walk into the flagship store of Loewe, the clerk will enthusiastically recommend you to the museum and get a close understanding of the brand culture.


Prada New York flagship store is an outstanding work in the digital age of Burberry London Regent Street flagship store, which has been recognized as a classic in the industry. Prada The sight of the shop is full of digital screens. They replace the mirrors that once used to be full of flagship stores. Even inside the fitting room, there is a plasma screen. It allows the fitting people to see both the front and the back.


Luxury brands invest heavily in designing and decorating the digital flagship store, attracting huge traffic volume while promoting image publicity, especially in digital stores in London, Paris and New York. Mobile customers are still the mainstream of consumption, and the extreme service and novelty experience provided by high-tech stores make customers' impulse spending power reach a new peak, especially for Asian and Middle East consumers who belong to impulse customers.


   Digital marketing shrink?


Major groups have begun to sharply reduce the huge cost of digital marketing.


When many brands are making use of Digitalization for brand promotion, the 157 year old "Burberry" has successfully applied digital marketing to finish the "young counterattack". Now the fashion circle, we all used to call Burberry "the youngest old brand", and the young and high tech has become the brand new LOGO, as well as the tricolor scarf. Of course, its successful transformation is not just to bring the good news figures to the brand, but in the luxury business of New York and Paris's major business schools, Burberry's "counterattack" has been written into the case, but should the Burberry mode be repeated or surpassed?


In the luxury industry, although more and more brands are investing more in improving and improving the digital experience of brands, most of them are still cautious about wait-and-see attitude. Many top brands still sit quietly in the altar, especially those in Paris and Milan. Latest fashion Housing or leather goods houses, they still believe that digitalization will weaken the essence of experiential services to a certain extent, do not let customers feel the core value of "custom-made" culture, and will disseminate the "mass" image of brands, which are not desirable for many top brand brands.


Designers and professional salesmen even disdain the use of iPad in many advanced Custom Stores scattered across the Seine River, because no matter how realistic the effect is, there will be chromatic aberration. Only by selecting the rare color palette or top grade fabric cards directly to the customers can we complete the "customization".


In addition, it is noteworthy that the digital marketing of the brand is basically focused on the propaganda and sales process, and the after-sales service is obviously lagging behind. Therefore, how to achieve a seamless shopping experience should be a problem to be solved urgently for the brand. Lian Crawford promises that online stores can achieve the same day's arrival in Beijing, Shanghai and Hongkong. The store of Shanghai's Lane Crawford Times Square, which is about to open in September 2013, will achieve the order picking and return service, which will undoubtedly become another heavy weight for consumers.


There are twists and turns in stories. After several years of strong industrial growth, luxury goods are facing a new round of cold winter under the influence of Euro turmoil and Asian economic slowdown. The major groups have begun to substantially reduce their marketing investment, and bear the brunt of the huge cost of digital marketing. This has made many brands eager to speed up digital marketing have to slow down or even stop their plans, or even quietly withdraw from existing markets to preserve their strength in this cold winter. According to people familiar with the matter, in 2013, many luxury brand marketing fees fell by 1/2, including advertising and digital marketing budgets. Maybe it's the best choice.

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