Why luxury brands are racing to embrace e-commerce?

Table of Contents

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Get the brand story straight
Focusing on all channels

Millennials and Gen Zers, with their buying power and changing demand, are affecting luxury ecommerce trends significantly. This is the reason why luxury brands are racing to embrace e-commerce.

Why luxury brands are racing to embrace e-commerce?

Gucci Embraces E-Commerce in China / Ph: Gucci

When consumers are willing to pay a huge amount of money to buy something, it is not only for the product itself but also for their emotions when doing so. Allowing customers to buy wherever and whenever they want is the key to the success and higher competition for brands, which all luxury brands should focus on. Many brands are following luxury ecommerce trends, building and managing their own websites instead of relying on a third party to better control over the product’s content.

Get the brand story straight

A blurry positioning is dangerous. That’s because a blurry brand will not resonate with Millennial or Gen-Z consumers, each of whom has a shorter attention span and less patience. They expect to understand their reason to buy the product right away. The message needs to be specific and relevant to them. Precision is necessary so that brands need to have a clear purpose which cannot be defined from the brand’s perspective but needs to be determined from a consumer perspective. The common positioning statements, for instance, “Creating your dream, creating your experience”, are not enough to attract consumers nowadays. The messages are not relevant to them because they are more likely to believe something that they do not experience themselves. This kind of blurry brand can never be stuck in the consumer’s mind. As a result, the brand will become obsolete in the fierce competition. The experience that a luxury brand creates must reflect the core positioning of the brand.

Focusing on all channels

Luxury brands have to focus on whatever channels that consumers want. Controlling brand stories online is as important as controlling the sales environment in the physical outlets. When following luxury e-commerce trends, it is suggested that brands which use third-party sites have to be careful controlling all the content in the sites to contribute to their consistent story. Taking advantages of consumer data Technology has developed dramatically. Thus, there is no reason to not take advantage of this development to have an insight look into customers. Luxury brands have to use the potential of AI to evaluate the effectiveness of a marketing campaign and measure how customers feel about the current basis. Advanced data will give brands a chance to better understand their consumers, thus leading to a wise marketing strategy. Survival is the answer to the question of why luxury brands are racing to embrace e-commerce. As the market has been saturated, creating customer’s luxury experiences is a way to succeed.