Posted by The last quarter brought me several opportunities to discuss and reflect on the latest marketing trends in the luxury and fashion industry. Although I haven’t worked directly in the industry, it is very close to my heart. I also had a chance to learn a lot about it while developing a number of thought leadership projects with my team in collaboration with Vogue for Business and Launchmetrics during my time at TikTok.
I had the privilege to be invited as a guest speaker to Condé Nast College of Fashion & Design, and to attend the K&L Gates Luxury Summer Event. I felt encouraged that there was a consistent message from the conversations during these two events. From what I see, digital marketing, the understanding of consumer journeys, and sustainability continue to be top of mind for experts in the industry.
Looking back at the whitepaper that TikTok launched in partnership with Vogue Business, I’m glad to see that companies in the luxury and fashion industry are taking very specific actions in strengthening their presence in digital not solely because it’s a general marketing trend, but also because they really want to be where their consumers are. In the whitepaper ‘Luxury’s New Checkout: Changing the Path from Discovery to Purchase’ we wrote: ‘For consumers, inspiration looks and feels different now. Luxury consumers want luxury to feel iconic, they want heritage and they want creativity, but they need it to be recontextualised, and a part of evolving culture.’ [1]
For brands it means that they need to embrace ‘the disruptive impact of social media on an industry that always has been very, very top down’ as ‘the luxury industry is witnessing a shift towards the power of the individual and the democratisation of influence, with the consumer sitting at the top of the cultural funnel’. [1]
To be able to fully address this shift, luxury brands have a strong opportunity to make a huge step towards leveraging digital channels in a 360-degree manner. This shift can be achieved via using digital not just as another communication channel in the marketing mix, but rather through focusing on the whole funnel activation. Brand strength can get amplified in digital with the power of creators, and communities and participation, while strong call to action can encourage shoppers to make unplanned purchases.
Interestingly, a TikTok study conducted in partnership with Vogue Business showed that 65% of luxury purchases, which were inspired by TikTok, can be classified as unplanned (learn more about differences between planned, unplanned, and impulse purchases in the summary video of my PhD research). Although this high percentage might sound very surprising for luxury brands, this fact demonstrates how critical the role of social media is in the modern consumer’s path to purchase.
If we look at the messaging which allows luxury brands to amplify their voice in the industry, we can easily see that sustainability is one of the most prominent topics for brands. However, it’s definitely not very easy to unpack this opportunity in the way that fully resonates with consumers. As an audience member highlighted during the K&L Gates Luxury Summer Event, while talking about sustainability, luxury brands want to stay authentic in their messaging, and to continue showcasing their unique points of differentiation. For instance, a luxury brand that uses high quality leather may not want to lose this point of differentiation on the market, despite recognising the contradiction with their sustainability messaging.
As we can imagine, consumers would still prefer communication from brands about sustainability in a way that stays relevant and credible. Also, consumers need to see luxury brands talking about things that are important in ways that resonate with them. [2] For instance, brands should avoid a perception that they are just saying ‘Yeah, there is this problem, we can do this little thing’, and rather build an image that they take specific solid actions to address the problem right now. Eventually, sustainability should feel tangible and realistic, so that consumers feel brands really step up and take responsibility.
This is another area where the importance of digital channels comes into play, as they allow brands to speak to consumers’ lives and passions, include them, and encourage positive change for people and communities. Brands can leverage digital to lead with positive and realistic messaging, showing consumers a specific plan of action and inspiring consumers to support and engage.
Eventually, positive sustainability will become motivating and encouraging for consumers of luxury brands to do what they can for the environment while consuming the brands’ products. Luxury brands can benefit from positive sustainability via giving hope and showcasing positive action instead of just reminders about the problem.
Sources:
1. Vogue Business, (2021). Luxury’s New Checkout: Changing the Path from Discovery to Purchase’. [online] Available at: https://www.voguebusiness.com/technology/luxurys-new-checkout-charting-the-path-from-discovery-to-purchase
2. ENGAGE, (2022). Brand e sostenibilità: come raccontare efficacemente il proprio impegno? Lo studio di TikTok. [online] Available at: https://www.engage.it/social-media/brand-e-sostenibilita-come-raccontare-efficacemente-il-proprio-impegno-lo-studio-di-tiktok.aspx
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