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the dream factor from luxury purchases and “massifies” luxury consump-
tion. While this argument is sound, it is time for luxury brands to explore
ways that technology could support client regrouping through using cards
for client recognition across different channels and touch-points.
In following the same pattern of aversion to reward cards, luxury brands
have also frowned on branded individual credit cards provided to clients
for shopping, as well as payment plans such as the installment payment
programs widely practiced by luxury boutiques in places like Brazil and
Bulgaria. The domain of branded credit cards has been ventured into by
the likes of Giorgio Armani, Roberto Cavalli and Alexander McQueen
mainly on a design level. Branded payment cards could also provide an
avenue for overcoming the client identification crisis that luxury brands
experience with an increasingly international clientele.
Rewarding luxury clients could also take the form of special access to
events online and offline as well as access to exclusive web pages and
content. Several luxury car brands like Porsche and Ferrari are cur-
rently applying this, particularly online, and on the beauty front Parfums
Christian Dior is leading this through its VeryDior club.
Online luxury clients could also be rewarded through mining the database
to propose personalized offerings to clients according to their page views
and interests. This is likely to yield higher results than mass email market-
ing and will also go a long way to making the client feel recognized and
respected. This could also be transferred to the offline offerings.
Online luxury clients who regularly shop or visit the brand's website
could also be rewarded by being invited to be among the select few to col-
laborate with luxury brands on different levels, whether it is through ideas
generation, co-creation, special visits or brand's events. These steps will
surely strengthen the bond existing between the brand and clients.
From e-people to what people?
Digital technology has dramatically changed the mind-set of an entire gen-
eration and has reshaped several economies and societies in less than two
decades. There is no doubt about this. It has also resulted in several con-
sumer cultures and sub-cultures, most of them linked to luxury directly and
indirectly. Because of instant messaging through smart phones, the Internet,
social web platforms - blogs, online communities and virtual worlds - and
portals like YouTube, MySpace, Flickr, Skype and Digg, tens of millions of
people all over the world are instantly aware of what is going on everywhere
in the world at the same time. These digital elite with high doses of disposa-
ble income amassed from an entrepreneurial culture are defining a new set of
rules for luxury experiences while challenging the ways luxury brands relate
to them. Their current expectation is that luxury should come to them rather
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