Premium Luxury Brand Digital Marketing Agencies – Summary: Until recently, a lack of digital prioritization and a desire to control access led to a dull ecommerce experience. Many luxury brands strive to improve.
Over the past few years, luxury brands (think Gucci, Louis Vuitton, Chanel, Fendi, Hermès, etc.) have been working to improve their digital presence and ecommerce services. Two major factors motivated this change:
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These two motivations have caused a sudden increase in the interest of luxury brands in the digital strategy. However, many of those brands are struggling to develop their digital presence while still holding on to core luxury values.
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This conflict has much to do with Don Norman’s theory of levels of emotional response: visceral, behavioral, and expressive. The value of luxury brands is strongly based on emotional appeal — in other words, people are drawn to luxury products because of what their association with those brands says about who they are. Companies that focus on this level of display (whether it’s luxury or not) sometimes ignore the practical, ethical side. While luxury brands may have escaped the negatives of digital in the past, they are quickly realizing that they can no longer.
To understand the relationship between luxury-ecommerce design and usability, we conducted a series of user research sessions, using both usability testing and user interviews. Our findings are presented in a series of 3 articles:
Additionally, in chapter four, we summarize the strategies we used to recruit high-income participants for this study.
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It is tricky to nail down a precise definition of luxury, as it is a vague concept that can mean different things in different contexts. For the purposes of this article series, I am defining four categories that a product, product, or service may fall into. These categories are largely defined by (1) how much the products or services cost and (2) how easy it is for people to access them (ie, find and be allowed to buy them).
The higher the price and the harder to access, the more luxurious the product or service.
In some cases, a brand may fit perfectly within one category – for example, GAP and Target are mass market, while Lululemon is completely premium. In some cases, the same product may have different offerings at different levels. For example, Hermès offers some accessories that cost a few hundred US dollars and are easily available on their website – a luxury offering, but not too luxurious. However, they also sell the famous Birkin bag, which costs tens of thousands of dollars and is available by invitation only to VIP customers.
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This series of articles focuses on digital products owned by luxury and luxury brands. This excludes most of the retail space: resale, vintage, and third-party retailers (such as Saks Fifth Avenue, Farfetch, or Net-a-Porter).
The rules for luxury brands are very different from those for other types of retailers — mainly because the decision-making process for luxury purchases is not manual, but highly emotional. Luxury marketing relies heavily on establishing and protecting brand narratives – especially around quality and exclusivity.
Most retailers have a strong incentive to sell as many products as possible to as many people as possible, but luxury brands should be wary of expansion. This is a matter of reach and value — the more people own a product, the less it becomes. These signs
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They want to sell to everyone — they want to sell to the “right” people. They exist to describe a social situation. As a result, the rules of convenience sometimes clearly violate practicality. They want to make customers “work” to “earn” the product.
, J.N. Kapferer and V. Bastien lays out what they call “sales rules” for luxury products. Some of these laws include:
4. “Get rid of people who are not motivated.” Luxury brands must ensure that people who buy the products understand and believe in the brand values. In other words, they should not allow anyone to buy the product. This rule has a lot to do with the need for luxury brands to limit their customer bases.
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7. “Make it difficult for customers to buy.” This rule could not contradict the standard UX of ecommerce. The basic philosophy behind this rule is that, if luxury buyers have to work harder to acquire a luxury item (eg, by searching or waiting for it), they will value the item more.
24. “Just sell less online.” When these laws were published in 2012, the authors of the book saw ecommerce as “fast evolution, constant change and realization, availability, accessibility, price reduction, automated service, crowdfunding […]——a major reduction in the industry.” Buying luxury takes time and effort to get it right.”
, these quotes provide clues as to why luxury brands resist and struggle with digital strategies. For these companies, there is a strong wariness of ecommerce as inherently inconvenient.
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Part of the problem seems to be that luxury brands have a hard time finding digital strategy consultants who understand luxury. Instead, they are given general advice that does not fit the luxury model. We spoke to Katherine Sousa, senior consultant at the Luxury Institute, for research, training, and communication and strategy for luxury brands.
“There is a huge disconnect between customer convenience and digital. Luxury brands bring in external digital experts who have driven success in other industries, but don’t target luxury or high-end consumers. They think they can use the same strategy and tactics, but they tend to perish.”
He told us about a luxury client who reacted negatively to a conversation about surveying customers for feedback.
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“Their team wanted to get consumer feedback through customer experience. The officer’s response to that was, ‘That’s difficult. We don’t ask for customer feedback like that out of luxury.”
This anecdote illustrates a key challenge for modern brands: How to adopt a digital strategy that delivers great experiences without compromising luxury values? Sousa stressed the importance of a good fit.
“Response is important. There are more subtle, thoughtful ways to solicit feedback that make sense for the brand and align with its values. When a client has just dropped $20,000 into a fund, of course you can’t ask for feedback the same way Delta Airlines does. […] Luxury brands are trying their best to become more digital, but are struggling to implement a digital strategy that makes sense for the needs of today’s consumers.”
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Luxury brands should adapt to standard ecommerce advice to serve their needs. Unfortunately, many who try to do this simply end up with a disappointing digital experience, falling short of the standards set by these brands in their stores.
With luxury brands, in-store experience is king. Luxury shoppers we spoke with indicated that they value the following aspects of luxury shopping:
Luxury brands often prioritize their in-store experience over digital. Unfortunately, that prioritization of the personal experience has led to a significant reduction in digital. In our research, we noticed many cases where luxury shoppers wanted to shop online but were forced to schedule an in-store trip due to a subpar digital experience. This was especially annoying for those who struggled to fit their personal travel into their busy schedules or who didn’t live in large metropolitan areas with luxury stores. (Fancy stores tend to be more rare than other chain stores, so even major cities may not have locations for every luxury brand.) Some customers may stop trying to buy from that brand directly, and, instead, turn to convenience stores. stores or luxury platforms like Moda Operandi. When that happens, brands lose control of product launch and risk losing sales to competitors.
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Since brands are not seeing more online sales, they continue to prioritize the in-store experience, which exacerbates and perpetuates the problem. This cycle is fueled by the fact that established luxury brands have a highly motivated audience, who will tolerate a large amount of disruption to find things they like.
The self-fulfilling prophecy of digital luxury is bad: Brands are prioritizing the in-store experience at the expense of the digital experience. Poorly designed digital experiences force luxury consumers to shop through other channels (in-store or through a sales representative) and make brands prioritize these non-digital channels, as they lead to more sales.
However, the COVID-19 pandemic, along with a young and sophisticated audience, has prompted luxury brands to realize that they need more advanced digital methods to retain the love of their dedicated audience.
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“I think we are in an era where consumers will no longer accept the fact that product description and information are small; new new buyers will want it. COVID created a situation where luxury brands no longer had an option — they had to go digital. Many of them had to strive to do so, but digital is now being prioritized and taken seriously. Brands allocate significant budgets to developing digital tools and strategies. But it won’t be the same as the Amazon – one click and buy experience. Yes, luxury should be completely seamless, but it should still create an emotional connection.” – Katherine Sousa, senior consultant at the Luxury Institute
Luxury brands will continue to prioritize their in-store experience – and rightly so. But to succeed in the increasingly digital marketing landscape, they need it
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