J K Diamonds Institute of Gems & Jewelry in collaboration with Learnathon conducted a survey among its students and related groups to understand the luxury brand’s as well as the end user customer’s mindset in relation to luxury products and services. Digging deeper gave us some great insights:
When it comes to being active digitally pertaining to the luxury industry, Women are more inclined to participate digitally following luxury brands online as compared to men.
AND GEN Z
The participants were majorly the younger generation with almost 56% between the age of 25-34 while 28% between 18- 24 years. Clearly shows the digital savviness of the age group to participate and adapt to tech based environment.
While majority of the respondents answered that they own and follow luxury brands on social media platforms, what is interesting to note that more than 84% follow luxury brands on Instagram while only about 46% of them follow Facebook. Other popular apps were Youtube and Pinterest.
It would be prudent to take note of Tiktok,
the fastest growing social media platform. Our team was in two minds to even
consider it seriously as a social media platform, thinking it may not be a
platform where users would follow a luxury brand. However, during the
course of our research we found three top brands collaborating with Tiktok:
Louis Vuitton, Ferrari and Marvel!
These brands may well become the trendsetters in accepting new platforms for brand awareness. The reason is simple, Tiktok holds potential for awareness among the future buyers and influencers.
SHOWCASING YOUR BRAND ON DIGITAL CHANNELS
What do customers want to see about your luxury brand? Take a look in order of preference:
Interesting updates and news about the brand, its products and upcoming events (79%)
campaign images/videos, fashion shows etc. (50%)
photos/videos & introducing relevant people behind the brand etc. (48%)
to interact with the brand / other users (reviews, customer service, general
discussion etc.) (48%)
to shop products featured in the posts – For example, Instagram’s latest Shoppable posts feature (43%)
content (content created & provided by the brand's audience) for more
authentic experience (26%) – For example, Apple’s Shot on iPhone are photos
clicked by iPhone users and promoted internationally by Apple.
and giveaways surprisingly had quite low engagement with only about 27%
respondents preferring it as compared to other content. This shows that offers,
discounts from Luxury Brands may be effective only temporarily.
DIGITAL PRESENCE ENHANCING BRAND VALUE?
In our research we gave the respondents few
thought provoking statements and asked them whether they agreed to them. Check
out their response:
DIGITAL ENVIRONMENT AND THE RETAIL CONNECTION
Nearly 43% of the respondents agreed that digital presence is capable of increasing retail footfalls and increasing brand’s sales. While 38% remained neutral about the digital presence facilitating the brands turnover.
However, the connection is growing stronger between the two worlds and a strong 76% of the respondents said brands need to invest in understanding the digital environment and increase their efforts in adapting the same.
WHERE ARE LUXURY BRANDS GOING WRONG?
Our team dived in deeper to get you some insights about where customers think Luxury brands are going wrong when it comes to joining the digital revolution. The factors have been noted below:
We hope these thought provoking insights added value in understanding the digital revolution and customer’s changing landscape. At best, these changes are in fact an opportunity and can help the brands adapt and gain more traction. Realising this is half the battle won.