Isaac Mostovicz writes that about the need for luxury retailers to take marketing to a new level...
I have recently written on the need for luxury retailers to take marketing to a new level, ensuring that their endeavours are commensurate with the sophisticated consumer audiences they are targeting.
Therefore I was not surprised to read this recent article on Luxury Daily, which explains that mobile applications with augmented reality features are becoming increasingly popular amongst luxury brands. This is because their customers have come to expect a certain high level of innovation, quality and engagement.
Many luxury brands, such as Audi, BMW and Zenith are using this technology to introduce new product lines and promote events, and are able to highlight their products in a way which seems more immersive than traditional marketing methods such as placing advertisements.
For example, Zenith, a luxury watch maker, have developed an application where the user can browse the digital selection of watches and see how they would look on their wrists. And BMW is taking its digital marketing strategy to the next level by incorporating mobile augmented reality in its promotion of the new X3 model.
BMW's X3 mobile augmented reality app
The article’s author stresses, however, that it is important for brands to remember to use technology to add meaningful experience, not just for the sake of it.
As technology advances and luxury consumers become more tech-savvy, as well as less easily impressed, it is clear that marketing – whether through new technology, innovative concepts or novel experiences – has a strong role to play in developing the luxury sector even further.
Isaac Mostovicz writes that that luxury brands are going to have to keep up with technology if they are to remain at the top of China's luxury markets...
A recent report by a research company has found that many of the American and European luxury brands that are making huge profits in China are failing to deliver an online experience that appeals to an increasingly technologically savvy Chinese market.
Sales of luxury goods in China are growing fast, with the sector set to be worth £9.3 billion by the end of 2014. China is expected to overtake Japan as the global largest consumer of luxury goods in 2015, and in 2020 the Chinese luxury consumer base is predicted to double to 160 million people.
The Chinese are also going online in unprecedented numbers, and by 2015 there is set to be over 750 million internet users in China, with a significant number of these accessing the internet on mobile devices. Increasing access to the internet and rapid developments in technology are seeing Chinese consumers finding new means of purchasing online.
In order to make the browsing and buying experience as engaging and appealing as possible to consumers, brands are going to have to bring newer technology into stores, on mobiles and to people’s homes. Luxury brands are going to have to be innovative, creative and at the cutting edge of technology, or they risk being left behind.
Isaac Mostovicz writes that that Mulberry is another example of luxury brands going from strength to strength...
Mulberry Group, the British luxury apparel and accessories brand, has become the worlds best performing fashion retail stock, according to Bloomberg.
Their bags, such as the ‘Alexa’, have become iconic, and expansion in the US and Asia has seen Mulberry’s stock rise by over 500 per cent in the last twelve months, whilst the companies profits have quadrupled to £17.1 million.
This recent Forbes article suggests that Mulberry would do well to follow in rival brand Burberry’s footsteps and bring newer technology into stores if it is to continue expanding throughout Asia.
Whether Mulberry becomes more tech-dependent or not remains to be seen, but one thing is certain – they are another brand demonstrating that luxury sales have not been diminished by the recession, and that luxury brands are now poised to be stronger than ever as they are further immersed in the booming Asian markets.