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Digital Marketing for luxury brands

This morning, I was totally attracted by Tiffany’s microsite, What Makes Love True. The romantic images and words are strongly telling Tiffany’s brand story about realizing true love. The company also launched an app version of this website where people can discover love stories, useful tips with Tiffany, and share their romantic journey. Tiffany & Co. reported that its sales increased 20% after it released the two digital marketing elements.

According to Duke Greenhill, CEO of Greenhill+Partners, the premiere agency for bespoke luxury brand marketing, successful luxury brand utilized not only four P’s of traditional marketing but also the four E’s: Experience, Exclusivity, Engagement and Emotion.

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  • Experience:

During and post-recession, luxury consumers are becoming more selective about what they spend money for, and they usually think about whether the price is worth it before making purchase decision. So, luxury brands should examine its image and think about what compelling and unique experience that it can bring to customers.  It is significant to devote as much quality to the experience as to the wares it sells.

  • Exclusivity:

People naturally are easily drawn to things that they cannot have, and exclusivity makes buyers feel special and unique. It becomes a linchpin in luxury brand success. With the popularity of social media, the Internet is more about inclusion and access. It looks conflicted to combine these two traits into a coherent marketing strategy. However, from the St. Regis E-Butter app to Chanel’s interactive microsite, we can see how technology and website design makes luxury brands appear cutting-edge.

  • Engagement:

For luxury brands, it is not enough to persuade people to pay the high price; instead, convincing consumers to engage and participate the journey is adding value to brands and consumers. Story-telling components are one way to give consumers a reason to engage with the brand. Louis Vuitton Journey presents an interactive website showing its brand story, and the design, the content and the stories are fascinating.

  • Emotion:

What long-term luxury brands ultimately want to build is one deliberate key emotion among their customers. For luxury consumers, it is a particular and elusive emotion instead of a physical product that they are looking for and keep coming back. As Duke Greenhill stated, people are loyal to Burberry because they want to feel “authentic” and “timeless.” They stay at the Ritz-Carlton to feel “august,” and they frequent Tiffany’s to feel “love.” So, a luxury brand should determine its core emotional value first, and then it can construct physical and digital marketing strategies to extract the specific emotion.

It was reported that Burberry dedicated 60% of marketing spend to digital experience such as Facebook, The figure was three times the average investment, and it enjoyed a 29% increase in revenue as return. It sees that the luxury brands are ready to compete and win our attention with digital marketing strategy

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