The luxury industry on the whole had traditionally resisted getting into the digital arena. But the year 2010 has been a turning point which has seen a change in their attitude and it now seems very likely that they will go the whole hog in not just embracing the digital media but exploiting it to the fullest. Brands like Coach, Ralph Lauren, Burberry and luxury watchmakers have taken serious initiatives in the field and the New Year will definitely see more companies and luxury brands roll out their digital plans.
Luxury Society, a social network for those working in the luxury sector, has recently released The Digital Agenda report on the status of the industry and where it might go on the digital road. The report indicates that there will be pressure for measurable results. The confusion about customer’s online behavior is over and the companies would like to measure the success online. Facebook was way ahead of Twitter as the preferred social networking site for the luxury industry. It will be interesting to see how the two sites compete and take their relationship with business forward in the New Year. The report indicates that 2011 will see the companies using social media as a Customer Relationship Management tool.
The companies will be on the lookout for newer methods and medium to share product and brand information in an engaging way. Luxury executives have not been able to outsource more than the most technical part of the digital initiative. They would have to open up more without diluting their exclusivity. The share of digital marketing in the overall budget is low at the moment but is expected to grow rapidly. The report is also clear that the e-commerce will grow fast and luxury brands will find it tough to secure a significant share. The report is of the opinion that digital PR cannot be ignored any longer. More brands are expected to act as media outlets in 2011 but the challenge is to stay relevant and connected to fans. M-commerce and marketing solution will be an area of focus for luxury executives. The battle to make the mobile a trigger for in store purchase will be fought in 2011.
