The world is experiencing a major shift in beliefs, the way we market luxury brands has changed dramatically. 15 years ago,major brands like Gucci and Prada would have second thoughts when it comes to marketing online and there has always been a pervasive idea that the Ultra Elite do not use online platforms. Today, this is the biggest myth in luxury marketing, we have seen new kinds of marketing emerge and because of this the entire definition of luxury marketing has changed. There are a lot of myths surrounding the luxury market, because of this luxury strategy experts inside Moola Forum are continuously studying the biggest obstacles to high performance luxury marketing online and offline.
Moola Forum was started exclusively for a small group of luxury lifestyle and private wealth managers in 2013 with an aim at providing guides and super high-quality information on a variety of topics covering luxury marketing to high-net-worth individuals in Asia.
With the rise of technology in 2019, Moola Forum opened its network not only to luxury lifestyle consultants and private wealth advisers to HNWIs but also to luxury brands and companies that provide luxury products and luxury services to the growing population of HNWIs in Asia. Moola Forum now hosts conferences and local networking events.
1.Luxury Clients are Private and Do not Interact Online
The richest person in the world and billionaires, and the most elite people are not immune to the effects of social media. While it is true that some remain elusive and private, it does not mean that they are not observing online. Everyone is interested in the information that online provides, and it should come as no surprise that even the elite remain approachable online. The social media era has reached everyone no matter what social strata they are in. Even the most high profile celebrities in Hollywood reply to their audience online. Luxury clients and the elite is more discerning, but once you are able to provide them essential information and guidance, they will interact and provide you their personal data, relevant insights and tell you how they want to be treated. This is the reason why brands should become active online in engaging audience and strive to create an intelligent relationship with them. Brands should avoid committing the mistake of being aloof or distant and not working on their online persona just because they perceive their brand as either too might or too high.
2. Luxury brands always equate to exceptional customer service
Unfortunately this is not always the case, there are some luxury brands that are just banking on the fact that they are well-hyped and marketed. But it does not translate to high quality customer experience. This is the reason why, businesses need to take time to train their people when it comes to proper business etiquette and to educate everyone from the marketing team up to the graphic designers, and sales clerks to just about anyone in the company to have impressive customer skills and interaction skills. Emotional intelligence is still highly preferred, when it comes to dealing with clients. Luxury brands no matter how popular they are, should not forget to do proper marketing and sales so they can maintain long-term clients. For example, a luxury brand that creates hand bags should be prepared to handle various customer inquiry and should be able to provide immediate assistance for clients who have issues with the products they have bought in real time.
3. Luxury e-commerce should rely on Automation and Chat
While automation and chat makes the work faster, it doesn’t mean that it is able to improve the customer experience. Despite the automation and chat bots presence, luxury brands should find a way to appoint genuine ambassadors and authentic people to represent the brand and express the experience. Luxury brands still need to bank on an emotional connection to perfect the online experience. Remember that every brand in the world right now is pushing for better content, and elite shoppers are looking forward to improved online experience without losing the human connection. Which means you still need as a luxury brand to have your business client appointments, expert advisers to speak for the brand, and actual people who will observe and curate the impression of the brand online so you can create a proper marketing tactic that will lead you to higher conversion rates. Remember that sales associates are still very much important as they are emotionally intelligent. Put an image, a person that is trusted to speak about the brand, and engage in the use of influencers who are the real deal.
4. Chinese Clients will buy Any product that is tagged as Luxury
This is false, remember that information is at an all time high. Luxury brands cannot just hope that their products will sell because they are expensive. Remember that the clients of today are well educated, discerning even. Logos are appealing, but many buyers are willing to forego the brand if they see other brands that offer more.
5. You should only hire Executives and Elite Front- Line People who know what luxury means
This is a wrong notion, because creativity and ideas can flow anywhere especially with this new generation. Do not get locked in a vicious and repetitive cycle with your business. Instead, be willing to do collaborations and seek new ways to interpret the luxury brand. Big brands like Chanel understand this process and Coco Chanel herself has taken inspiration of her bag designs from every day life. Luxury brands should be larger than life, but not so large that its no longer able to reach the heart of the people. Take chances in hiring talented individuals who know the trends, who understand the movements on the streets. Remember that inspiration is vast, and some of the greatest individuals and talents come from people who have experienced tremendous trials to come out with inspiring creations. Luxury brands should not pass up the chance to work with new talents, and listen to the message and momentum of the streets. Remember that some of the most profitable luxury bags have banked on creating practical bags that every day people use- the brand should not lose sight of the practical.
6. Luxury is not the Absurd Pricing, Rather the Unique Experience
A luxury brand is not a luxury brand simply because it has an enormous price tag. A luxury brand is only able to retain its identity as luxury because it is able to give clients a unique experience that not ever person in the world is able to experience. It is all about making the experience premium, not as easily accessible as people want it to be. It is about having the ability to create the unique story that people will tell for generations because they have tried the product or the service itself.
7. Stop the Fortress of Secrecy and instead be transparent
Due to the influx of information, luxury brands should no longer lie on how their products are made. Instead, transparency is the key. If your shoes are made in Vietnam, make it so and create a story out of it instead of tempting to label the product as European. It doesn’t mean that if the product is from Vietnam that it is low quality, what matters is the story telling, the purpose of the product, the usefulness, the sturdiness, the quality and the feeling each time someone uses the product. Modern clients do not want to be sold with lies, the more lies luxury brands make the more the trust erodes. It is better to be transparent and create an authentic story that people will relate with and respect.
8. Luxury shoppers do not care or want loyalty programs
This is simply not true, wealthy shoppers though not so much driven by discounts are still intrigued by loyalty programs and opportunities that money cannot buy. When luxury brands offer exclusive experiences for VIP members a lot of luxury members are still intrigued. Brand royalty or being a part of a group that makes use of the same service can still drive sales, the same thing with special deals so luxury brands should remain creative when it comes to these types of things. Creating an intimate access and Premium items for Loyal members is still very much appreciated.
9. Luxury marketing is dying and the prices of goods will continue to go down
This is a clear myth because the power has simply shifted to online marketing. The number of affluent customers has risen everywhere in the world. New millionaires and new billionaires would especially want to try premium and luxury products that were previously not available to them. While there are more products to buy, it doesn’t mean that they are high quality. This is the reason why expensive sneakers and high end bags are still thriving anywhere in the world.