What Are the Digital Solutions and Strategies That Could Enable Luxury Brands to Continue Their Activities Even in a Crisis Period?
How six companies are using technology and data to transform themselves. Leadership for a new era. In one European survey, about 70 percent of executives from Austria, Germany, and Switzerland said the pandemic is likely to accelerate the pace of their digital transformation. The quickening is evident already across sectors and geographies. Consider how Asian banks have swiftly migrated physical channels online. How healthcare providers have moved rapidly into telehealth, insurers into self-service claims assessment, and retailers into contactless shopping and delivery.
Even within the same segment and price point, luxury brands’ growth varied from 40 percent to negative percentages, and earnings from 50 percent to single-digit percentages. We expect further polarization based on three fundamentals: the health of a brand’s balance sheet prior to the crisis, the resilience of its operating model (including its digital capacity, the agility of its supply chain, and its dependence on wholesale channels), and its response to COVID-19.
& Fenwick, Ian (2008) stated luxury brands should improve customer loyalty by developing service and customer relationships at the store. The study results showedthat luxury brands can deepen their relationship with the local customers through theirsales people,as service is the cornerstone of customer relationships which includesshopping by appointment, sending hand-writtenthank you notes, the availability of sale shopping, delivering purchases and calling or sending messages through chat applications with the customers.Zhang (2013) remarked that luxury marketers are now limiting their marketing and communication platforms through social media, suggesting that the luxury brands should concentrate on improving marketing communications and customer relationships through social media rather than focusing on mass consumption selling of entry products. The study also showed that developing a storytelling of the brand on social media isthe best approach for luxury brands to build brand loyalty with existing customers, foster brand awareness for potential customers and sustain the brand profile.
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Zhang, Chengmin. (2013). The challenges of luxury brands’ positioning on social media.http://www.brandba.se/blog/socialmediapositionluxurybrand-zhang