17 Sep Be prepared for the luxury industry’s changes!
Luxury industry, for those of you who closely follow the actuality, has been through a lot of changes during the past few years. Changes and evolutions within the different industries are not unusual: there are technical progress and companies have to adapt their strategies. There is an emergence of new markets, new consumer’s behaviors and new selling and buying methods. The luxury industry is no exception.
Luxury must adapt to the new consumers’ needs:
A luxury brand’s image and background are so well-known and established that it may be hard for it to question its strategy.
The customers’ nature and needs have changed: millennials have become an important target for luxury brands; the country of origin of the consumers tends to change too as many of them come from emerging markets such as China and India: Being able to understand your customers’ attempts and behaviour is the number one rule!
You can’t sell a product to a Chinese consumer like you would sell a product to European consumers.
Most of them are young consumers who are looking for great luxury experiences. They want to feel special and different and want services that match their needs and attempts: luxury is clearly not only about fashion and branding, it is a concept.
Customers are not loyal to one single brand and tend to buy products from many different companies.
A need a respect and ethic:
The emergence of digitalization and use of sustainable materials is also one of the big changes. Consumers are looking for products that are environment friendly and respect production and work’s ethic. For example, more and more fashion designers will replace animals’ materials by vegetal and synthetics materials.
The luxury industry can’t push away innovation, it is a necessity:
The online sales increase more and more and the luxury companies can’t ignore the online platforms anymore. The use of green materials and ethical ways of production has also become a huge criterion for the consumers.
Being able to meet your customers’ attempts is the second rule.
Consumers want to be connected to the brands, services and products. Waiting has been way harder for today’s luxury consumers: they need immediate replies and services.
In fact, the biggest challenge for a luxury brand is to find the right balance between traditions and evolution. They can’t forget their history and their image but they also can’t ignore all the changes. That’s why luxury trainings are here for! To prepare the brands and the managers to face all the new challenges of the luxury industry.
That is LSL Management Tip, thanks for reading and be sure to check the other management tips on our blog for LEARN. SUCCEED. LEAD.