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    The Future Dilemma Of Luxury Brands: Creating A Sense Of Belonging And Personalized Communication For Consumers At The Same Time

    2019/11/6 22:26:00 1

    Luxury Goods

    Although the winter of the luxury goods industry is considered to be basically the past, it is still not easy to restore the glory of the past.

    Ernst & Young has recently released its latest annual research report on luxury goods. According to the report, the market for luxury goods and cosmetics will reach 541 billion euros in 2022, an increase of 20% over 2018.

    In the past few years, luxury brands will face new challenges. Although the scale of the industry will continue to expand in the next three years, the annual compound growth rate will remain at a low single digit level. In particular, the annual compound growth rate of the luxury goods industry is expected to be around 3%. Compared with that, the annual growth rate of the light luxury industry can reach 7.5%.

    "The luxury industry will maintain a relatively stable growth mainly because the brand camps are beginning to polarize. Those who are good at digital work will have a three digit growth performance, while some big brands will maintain two digit growth, but more brands will be dismal." Elena De C, assistant partner of the fashion and luxury department of Ernst & young, said in explanation of relevant data.

       Digitalization is a key word in the global fashion industry in recent years. For luxury brands, how to put down the image of high and cold, and to contact young consumers with more advanced channels and means is a common topic. Gucci and Burberry are all good players. They not only focus on online channels and social networks, but also focus on how to create offline experience scenarios that can ignite hot topics on the Internet.

    But apart from that, brands should pay more attention to a more paradoxical problem. If how to specify and implement digital strategy is a methodological issue, this problem will be a more relevant issue of value, which is related to the brand's long-term image and influence.

    "A brand that can succeed now must know their consumers and guide them to find what value they can find through the brand. At the same time, they know that they should convey the relevant values and ideas to consumers in a way that consumers feel special treated." De C said.

    This is a major trend in the future luxury industry listed in the foregoing report, which is to create a sense of belonging to consumers while providing personalized, point to point communication and communication channels for them. Digital technology can be one of the ways to match this trend, but not all. This requires the online and offline channels to interact with each other, and the marketing means and product development information should be coordinated. It is also necessary to create something new at three or five, preferably with a rich variety and full variety, so as to maximize the probability of affecting the largest number of consumers.

       It is worth mentioning that this report points out that this trend is not only in the luxury industry, but also in the beauty industry. This is reflected in the fact that consumers are looking forward to more targeted products, such as self regulating beauty instruments, but they maintain common concern for the big industries such as environmental protection and social issues. Therefore, it also determines that compared with the space of luxury brand strategy, the cosmetics brand will have a more similar expression -- products will be more natural and environmental protection, and the crowd will be more desalinated.

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