We have now entered into an era where everything is connected through the click of a button. Facebook, Instagram, Twitter, and Tumblr have made getting the word out, as well as purchasing items, effortless. But how has this new wave of connection affected the fashion industry – where business is totally dependent on constantly changing trends and the extravagance of their products?
The infographic below shows that in 2012, an astounding 69 per cent of luxury brands had a presence on Facebook, 46 per cent had one on Twitter and 34 per cent had their own mobile app. These percentages have risen even higher today, creating a hand-in-hand relationship between social media and luxury brands. Understandably, this has both positive and negative effects on the industry.
Firms are now able to sell their goods faster and more efficiently, making the need for physical dollar transactions unnecessary. This has also allowed the range and amount of supply available to consumers to rise dramatically. For example, if you wanted to go to the shops and buy a scarf, but it’s out of stock when you arrive, you’re now able to purchase the very same scarf online without the risk of the shop being out of stock.
But the best thing about this movement into online marketing is that the advertising is free! Luxury consumers love to brag about their new Gucci bag or Prada shoes on social media, therefore spreading the word resourcefully.
Of course, there is a downside to this. Sixty per cent of Burberry’s promotional budget was committed to digital advertising in 2012, meaning that it’s an incredibly costly process to produce the best form of online P.R. As well as this, the real value of all these brands has now become more apparent due to the constant attack of online advertising that we face everyday. The Internet has created an incredible amount of substitutes for all these trends, making originality less and less apparent. This has forced a massive increase in the competition within the industry, which already is naturally quite competitive.
With these changes it’s important to stay up-to-date on the latest trends and challenges, which is exactly what we’re trying to help you achieve at Terrapinn Training.
Our team offers a 3 Day MBA in Luxury training course, including a look at digital strategies for luxury brands, as well as other tips and tricks for developing or maintaining a successful luxury brand.
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