For several years, digital transformation impacts many sectors. However, the worlds of luxury and digital have long opposed.
But what is the cause?
For brands in this field, there was an incompatibility between the exclusive, exceptional and quality values associated with luxury and mass distribution on the internet.
There are still some brands that followed the digital transformation quickly. For example, Hermes, Burberry or Gucci started in the 2000s: ecommerce platform and then social networks.
A current evolution
The sector’s global turnover in e-commerce is currently only 8%. But, in recent years, a rapprochement has been emerging between these two sectors and major brands even place digital at the heart of their strategic priorities.
The brands understood that digital was a real asset and if they do not communicate or sell on the Internet, they will almost no longer exist in the next few years.
In addition, luxury consumers are the most traveling; they are hyper connected and buy a lot on the Internet.
Digital highlights the specificities of the individual, thanks to its representation on social networks and its need for the most personalized experience possible on the net, which allows brands to succeed in its sales.
In addition, online notices, which are becoming increasingly important in the consumer purchasing process, must also be taken into account by major luxury brands. They represent 30% of purchasing incentives in the luxury sector.
Luxury brands invest in Facebook, YouTube and, most importantly, Instagram. In fact, nine of the top ten French brands on Instagram are luxury brands. They use the lives, the storytelling on Youtube or other to create a link with the consumer.
Today there is even an emergence of brands 100% digital. For example, Tory Burch is thus one of the greatest successes in the fashion sector in the last ten years. It has based its communication entirely on social media; it is now worth nearly a billion dollars.
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Written by Axelle