Information Technology Reference
In-Depth Information
luxury consumers are at a crossroads between the virtual melting pot, the
shifts in luxury consumption and the economic crisis. Here are ten indica-
tions and pointers for brands as we all make efforts towards making sense
of it all:
1. Consumers will re-interpret luxury according to their idea of what pro-
vides them with value. This re-definition of value will follow a new
order of evaluating the brands that are able to deliver what they promise
not only in terms of well-crafted and exceptional products with the best
quality, but also an overall positive experience garnered from the way
the brand presents itself, respects its clients, contributes to its society
and acts responsibly. Consumers will not stop spending on luxury but
they will only buy what corresponds to this new order of interpretation
and represents true value to them. The recent record-breaking auction
sales of Yves Saint Laurent and Pierre Bergé's private art and interiors
collections which fetched
374.4 million ($477 million), significantly
higher than the forecast
a
200 million to
a
300 million, right in the middle
of the financial crisis, attests to this. Investment is the keyword here.
2. Luxury clients will adopt online shopping to a greater degree than in the
past. Those that already buy online will use the Internet channel recur-
rently while those that have resisted using the Internet to purchase lux-
ury products and services will most likely adopt the channel. This will
arise as a result of two opposing factors. First, there is the current move-
ment away from street shopping which has suddenly become “unfash-
ionable” in a climate where job losses are a daily occurrence. Shopping
in discretion has become the order of the day and there is no better place
to do so than online. Second, there is the factor of discount shopping that
has become more accentuated due to the rise of markdown and sample
sale websites as well as the awareness of cutting back on expenditure in
the face of an uncertain future for many. In addition, the phenomenon of
the social web and its unique nature of assembling hundreds of thousands
of people to connect, dialogue and influence one another will gear a new
population towards online shopping.
3. Consumers will purchase luxury differently from the way they accessed
luxury in the past. This will happen through alternating between differ-
ent channels of distribution including physical stores, the Internet and
mobile shopping. The same client will increasingly experience luxury
through both channels and will seek uniform brand experiences online
and offline. Consumers that are experienced with luxury purchases
who know their tastes and the brands that are able to satisfy their style
demands will be savvy and confident enough to spend $thousands on the
Internet without blinking, just as they do offline. Also, as mobile tech-
nology evolves, they will progressively adopt this channel for access to
luxury.
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