No matter how sluggish markets are but luxury treads on its own trajectory with a bunch of connoisseurs and hedonists indulging in it with a sense of appreciation.
A new definition of luxury has been established where consumers not only embrace traditional standards of quality, service and craftsmanship but also seek the value and meaning behind the product. 2012 will see the consumers getting more concerned about tradition, heritage and history of the product they are buying while consumer-brand relationship will be a major driving force.
In recent Luxury surveys, it came out that only 10-15 percent of a luxury brand’s customers have a relationship with sales professionals and can name that person. Meanwhile, customer attrition rates in the luxury industry are at an astronomical 80-90 percent. The studies have highlighted that customers who have a true human relationship with a brand ambassador typically buy double from that brand and stay loyal for a longer period of time. The true humanization and relationship-building aspects of brand-building depend on the individuals who interact physically with their customers.
Luxury brands need to deliver outstanding service at the retail environment, fast, accurate, engaging, and unique. Consumers’ ongoing obsession with owning or experiencing the best of the best and their desire for serendipity, excitement, interaction and lack of time will force luxury brands to constantly innovate.
Moreover, customization, exclusivity and usage of rare materials making a product unique for a specified customer will be the order of the industry. However, recycling supposedly will prove to be the game changer in the coming days. The charm of creating something else with the original product besides cost effectiveness and nature friendliness will churn this industry. Similarly, generosity of a label will play a big role in determining its market share. The labels showing empathy, humanity and maturity toward environment and society will attract consumers.
The new consumers are spending more cautiously, but they still want the experience, try and share new things. They want to be surprised all the time. This can affect the way luxury business deal with experiences. The future is all about providing new ideas, experiences and creating new relationships.
Besides the time calls for strengthening of social media and online retail with the consumers taking more and more advantage of new technologies and applications in the comfort of their workplaces and homes to distinguish between two artifacts.
