The luxury sector is experiencing an unprecedented change, accelerated by changes in consumer habits linked to the pandemic. Although the transition to digital and hybrid technologies has taken some time, it is now undeniable that homes that have made profound changes to their marketing model through digitalization are now ahead of their competitors. With their experience in consulting and content management, especially for the big luxury brands, Valtech And coremedia analyze the new problems that will determine the future of the sector.
The virtual at the service of the customer experience in the luxury sector.
While the pandemic and confinements have highlighted the predominance of digital in new uses, the generalization of e-commerce will have to be done in coherence with all present and future acquisition channels for brands. In its white paper entitled “The future of luxury is virtual”Valtech explains how technology will become the engine of a whole new generation of luxury customer experiences and how brands will have to appropriate these technologies to take the “next step”.
Among the major trends in the “virtualization” of shopping, we note:
- The rise of the metaverse, which represents great opportunities for luxury brands, a vector to capture new generations of consumers that most brands are still struggling to attract. According to the Gartner Institute, 25% of people will spend at least an hour a day in the metaverse to work, shop, study, or play.
- Virtual reality and augmented reality technologies, increasingly accessible to the general public.
- Online video games have exploded with the pandemic, paving the way for new communication methods for luxury gamers.
In order not to lose the boat, it is therefore important to verify the relevance of virtual universes for your business and the best strategy to adopt, but also to align your digital strategy to all sales channels to offer a fluid and omnichannel experience.
Interview with an experienced specialist.
In addition to these trends, the white paper features an exchange between Jean Christophe Hermann, EVP Retail at Valtechand Isabelle Aguerre, founder of Lux in vivo and former employee of Cartier, Balenciaga and Chanel. The result is a detailed analysis of the key elements that will enable luxury brands to offer new experiences to their customers. Between them :
- Take advantage of new industry opportunities, anticipating potential risks.
- Adopt marketing and communication strategies that are truly customer-centric.
- See brick-and-mortar stores as privileged spaces where brands can differentiate themselves from the competition and build customer loyalty. In the face of competition from DNVB and platforms such as Amazon and Farfetch, a brand’s story and the human aspect will remain a unique and differentiating asset.
Evaluate the digital experience (DX) maturity model for luxury brands.
As we have just seen, certain factors are now widely considered essential for a successful modern and adapted luxury experience, hyper-personalization of messages and consistency of content across all channels that appear as prerequisites. To do this, brands carry out multiple product launch campaigns and must address their customers through continuous communication campaigns, and no longer just according to the usual “4 seasons”.
This is what it is coremediacompany specializing in the publication of multimedia content management software for brands, in particular for large luxury players, launches its white paper on “Corporate maturity model”.
We learn in particular the importance of self-assessment as a first step in quantifying content marketing performance in order to optimize the DXing of brands, as well as the five levels of maturity that come with it:
- The fragmented model. At this level, the brand has a website decorrelated from its e-commerce site, which leads to a rigid, complicated and inconsistent customer experience. It is therefore important to have a strategy in place to unify your sales channels and streamline the process from start to finish.
- The integrated model. Here, several channels are associated with content management. While the digital experience is more responsive and adaptive, it’s not yet personalized.
- The instant model. Through personalization, global campaigns give way to more local and more targeted campaigns, and a seamless experience is possible across all touchpoints.
- The dynamic model. We move here to a high level of digital experience maturity, with hyper-personalized experiences through the collection of relevant data, a holistic view of the customer profile, orchestration and instant management of large-scale product launches.
- The immersive model. The final phase of the brand experience is reached when the separation between the physical and digital world disappears. The difference is noticeable compared to the competition, all physical environments include the virtual dimension, the fluidity and consistency of the brand across all channels is exceptional.
Obviously it is always possible to innovate, refine and develop the customer experience at an ever higher level and closer to consumer expectations. The ability to do storytelling in a coherent and convincing way is therefore within everyone’s reach, the only one is having the right tools.
To learn more and transform your brand, access the Valtech white paper and Coremedia white paper here.