Luxury brands have been historically slow to embrace digital, overwhelmed by its complex nature and the perceived threat to exclusivity and other aspects of traditional luxury posed by the ubiquity of digital. But luxury brands are starting to recognise the significant opportunities that digital creates, both in attracting new affluent consumers and connecting with existing luxury shoppers.
In our previous blog post, we discussed the common mistakes made by luxury websites.
In this article, we will look at the fundamental reasons why premium and luxury brands must embrace digital.

Think about it, change is inevitable. Technology and digital have forever change how we do business, communicate and live. Embracing digital is no longer a “nice to have” option. Digital is essential. There are only two ways to look at the digital revolution. You can choose to adapt, to grow and to win. Or you can resist the change and watch your business likely fades away.
Premium and luxury brands need digital as a lever for growth now more than ever.

Reason #2: Clicks Meet Bricks.

Digital is impacting the entire value chain, from product co-creation to enhanced in-store experience.
Shopping behaviours are also changing. Online experiences drive real-world decision making. According to a report published by McKinsey in 2014, more than 45 percent of luxury purchases are influenced by what shoppers find in the digital universe.

Reason #3: Conversations Happen With Or Without You.

Posting. Tweeting. Reviewing. The affluent consumers love to share their first class experiences — whether an exotic vacation, a luxury spa experience or their latest luxury fashion pieces from the runway — with their social networks and beyond.
The affluent consumers often trust peer reviews and seek advice from their social networks to shape their opinion of a brand.
Consumers will talk about your luxury brand whether you like it or not, so it’s better that you be involved and engage with them and be part of the conversations.

Reason #4: The Affluent Consumer Is Highly Mobile And Connected.

Today’s consumers are constantly connected on a wide array of devices and screen sizes and this constant connectivity has major implications on how people shop and communicate. More than half of luxury shoppers’ searches are mobile. The luxury shoppers are extensively and increasingly using the Internet to investigate brands, research and make luxury purchases online, connect and share with people with similar outlooks. The luxury shoppers demand a seamless experience when moving across devices. Luxury brands must keep pace with their customers’ digital behaviours and preferences.

Reason #5: The Expectations Of The Affluents Are Rising.

An industry once dominated by middle-aged affluent shoppers is now seeing a new generation of young and affluent consumers: the Millennials.
Luxury shoppers now have a vast amount of information readily available at their fingertips. The new affluent consumers are more selective, pragmatic, discerning. They embrace brands that tell them truthful and meaningful stories about craftsmanship, sustainability and behind-the-scenes. And digital has the potential to do just that: immerse the luxury shoppers in very innovative ways. For instance, the Rolex website offers the ability to explore, in high definition, the mechanics behind its new movement.

In our next blog post, we will deep dive into HOW luxury brands can leverage digital to grow their business. If you need some help to establish a sophisticated online presence, contact our team at mOOnshot digital today.