For Luxury Brands, the Age of Digital Has Arrived
While in years past, the luxury sector may have felt like the last one at the party when it came to the digital customer experience, it’s clear that brands and designers have made monumental movement towards digital innovation.
PMX Agency CEO, Chris Paradysz, shared insight into the state of luxury and digital:
“The digital shift for the luxury consumer was stunning. We knew it was happening, but the acceleration was sudden. From brands with millions of people paying attention to upstart dynamos just on the map, there was a middle-of-the-night realization that customers carry their passions and emotions with them, everywhere. Whether hailing their Uber in Saint Petersburg, Russia, or shopping from this same phone when landing in Oslo, Norway, she knows what she’s looking for or just want to be entertained.”
We were thrilled to take part in another successful WWD Digital Forum in New York City over the past two days, and the success stories retailers shared across mobile, social, ecommerce, and digital in general, were striking.
Kate Spade & Company jumped head first into a digital-only strategy with its wildly successful #missadventures series, starring Anna Kendrick. EVP and CMO, Mary Beech, talked about the brand’s important shift to digital content, which in this case, garnered amazing increases in engagement from customers. She shared her view that:
“Content is king. But distribution is queen, and she wears the pants.”
Kate Spade was able to turn one successful episode of #missadventures into a variety of fun, digestible and shareable clips, helping to extend the reach of the campaign and win the hearts of more followers. In fact, Beech shared that Kate Spade saw a 25% increase in engagement rates across their social platforms, with Pinterest revenue up an impressive 32% year-over-year.
We also heard from Lindy Rawlinson of Neiman Marcus, who talked about how the advent of mobile has significantly altered the way customers expect brands to engage with them. She explained:
“Mobile is the center of what we focus on. It’s given us a new avenue to engage with customers. We’re always balancing the in-store shopping experience with additional features on mobile and in our app, like gift finders, ‘memory mirror’ and ways to connect with an associate.”
In the seventh addition of our annual Trends Report: Luxury Brands Online, we found that consumers are using mobile as the dominant medium to browse brands and products online. Over half (52%) of all traffic to luxury brand websites came from a mobile or tablet device. Our research teams shared:
“Luxury consumers are among the most digitally savvy, and for several years now they have visited luxury sites through mobile devices. Beyond site traffic, purchasing via mobile also continues to grow. With consumers more accepting of location-based marketing, some luxury brands like Michael Kors are automatically pushing nearby retail information on their mobile site.”
The study dives into various trends, including which brands and designers have led the pack in online strategies, and how others have emerged as key players in the social media space. Get your copy of the PMX Agency Luxury Study here.