Digitalization of luxury, essential for the survival of the sector

29/11/2021

While the luxury sector has been somewhat reluctant to carry out its digital transformation, it is now the business sector that offers the most innovations, new experiences and innovations to stand out and arouse desire. Because how to deal with the need to modernize and facilitate access to its products when the basis of its identity, its prestige and its attractiveness is based on rarity and exclusivity? Major luxury brands have known how to use the audacity and creativity they have always shown in order to digitize. At the key of digitalization of luxury ? An identity that speaks to new generations, the next consumers to be seduced.

 

Premium consumer experiences driven by luxury

Luxury offers second-necessity consumer goods, which are defined by their rarity, excellence and a high price. The sector stands out with an ultra-personalized and premium quality of service, with the benefit of a new experience that is supposed to create a strong desire for consumers. Digital luxury therefore seems to be a fairly contradictory expression, since digital technology tends to democratize openness to competition.

However, this disadvantage can be overcome by changing your point of view: easier access does not necessarily reduce the exclusivity and rarity of a product, but can on the contrary prove to be an innovative gateway to reach a new type of consumer, a real driver of growth for brands. Because digital technology is an unprecedented buying habit and a way to continue to stand out and increase your reputation. Luxury has therefore taken this opportunity in order to respond to new consumer habits, or even exceed consumer expectations to satisfy them and even more to surprise them. The traditional luxury of tailor-made products multiplies services and in-store experiences, to cultivate proximity and a sense of service at each stage of the customer journey.

By taking into account new consumer behaviors, the digitalization of luxury allows you to better know your customers through data collection, to offer them a premium experience and continue to make them dream. Despite its reluctance, the luxury sector is now one of the most innovative and creative in the field, and is continuing to build stronger relationships with their customers.

 

The use of technology for an exclusive customer relationship

One of the differentiating assets of luxury is the exclusive and privileged relationship it maintains with its customers. It is based on the close link that is created between the luxury brand and the consumer who owns their product, and who feels valued by it. As for digital technology, it promises to strengthen the knowledge of its customers and to structure its exchanges through data collection.

At the key? A perfect opportunity to develop ever more advanced and personalized experiences, in order to increase satisfaction and even more a feeling of exception. Retailers are therefore in a position to expect a revaluation of their image thanks to the digitalization of luxury, because its virality makes it a great tool. Between opinions, shares and social networks, brands no longer hesitate to offer “instagrammable” experiences using influencer marketing, to create a real community around their products.

By placing people at the center of their attention, companies maximize the impact of their offers and services thanks to data; they cannot do without analyzing consumer behavior and buying signals to understand expectations and anticipate needs in order to convert more. Monitoring customer reviews and interacting with your community is an opportunity to humanize a brand image. The establishment of dedicated services and the use of tools to offer premium support are two ways of showing attachment to customers, of cultivating your difference and of having a positive impact on your sales. Digital luxury makes it possible to produce an incomparable level of service to delight the shopping experience, and bring satisfaction and loyalty.

We can see their use of technologies (Augmented Reality for fitting on, virtual reality (VR), voice recognition coupled with Artificial Intelligence or drones for faster deliveries) for new services and experiences for customers who want exceptional and immersive experiences.

 

The gradual digitalization of the luxury industry

Brands surprise their target audience by focusing on exceptional, multi-sensory, even artistic experiences in their points of sale. Going to the store must create and even maintain a need, in order to make a new customer a regular. The luxury industry is based on e-commerce codes, with stores that have no stock, but offer efficient and ever faster ordering and delivery services. The challenge then remains to reproduce the fluidity of the online experience, while maximizing the advantages and the experience of visiting a store. Cultivating their prestige and their know-how while involving digital technology and innovation at the center of the customer experience, this is the challenge of the digitalization of luxury.

That's where the interactive digital signage, which is becoming a relay for digital windows at the heart of physical points of sale. All means are good to offer a heightened and immersive sensory experience.

The British brand Burberry is a pioneer in digitalization of luxury with its monumental and connected installations in its famous London concept store. Touch tablets and interactive screens, real positioned in strategic points of the store, allow you to order, consult the catalog, but also to pay for purchases. Saving time, valued brand image and personalization, digital signage is the ideal tool for offering a remarkable customer experience. Attractive and interactive, it increases attention and transmits information instantly, centrally and automatically.

Fashion show recordings, interactive catalogs, personalization platforms or advertising spots, digital signage offers brands a digital window, a great space for expression. It is one of the most profitable ways to enhance your brand image, generate in-store traffic and maximize sales. Cenareo and its management system dedicated to digital signage meets the needs of digitalization of luxury, for tailor-made communication at the service of a unique premium experience.

 

Generation Z, customers of tomorrow and a new luxury target

The luxury sector has understood it well, 15-24 year olds, called Generation Z, are the consumers of tomorrow. It is quite natural that they are now the new target to be developed, thanks to multiple levers.

In addition to collaborations, which represent incredible ways of integrating the codes of another entity for an ephemeral mix & match that allows for all fantasies, luxury companies are redoubling their efforts in order to expand their empire. In addition to an active and essential presence on social networks, especially on the latest TikTok, some brands have expanded the range of their services by offering sales via networks, the creation of Instagram filters to try products, video consulting services, and the use of augmented reality. Houses like Gucci or Hermès are also entering the online gaming segment, a successful bet in the age of gamification.

Looking for powerful tools to generate qualified traffic and offer a new experience to your customers? Cenareo supports companies in the deployment of their omnichannel marketing strategy thanks to its system dedicated to digital signage. Create and broadcast high-impact multimedia content on your screen fleet to surprise and retain your customers.

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