There?s no doubt that the luxury industry relies heavily on tradition, from reputation to tried and tested production methods and a certain level of service which resonates with customers willing to spend significant amounts of money. And this strategy has largely paid off?until digital technology began its stellar rise across the globe.
With the ubiquity of personal technology?mobile phone ownership is now almost at a saturation point in China?and consumer appetite for digital experiences beyond simple e-commerce, luxury brands are having to re-evaluate their engagement strategies.
According to research by Deloitte, for the luxury market to continue to thrive in China, ?leadership will need to break free from nostalgia. Luxury is different, but not that different. Luxury is special, but not that special. For some luxury brands, there will be different pressures which come from heritage or private/family ownership?resulting in a risk of inertia, over-control, caution and a lack of agility.? In a nutshell, luxury brands that have been reluctant to follow their peers into the digital arena need to become more flexible and move with the times or, as with brands across the industry, they will risk becoming increasingly irrelevant.
This presents some unique challenges to a sector steeped in tradition. According to the report, those challenges are:
? Avoiding ?throwing the baby out with the bathwater? and ensuring any engagement strategy maintains all the good things associated...