Luxury brands offer a case study of the benefits and drawbacks of e-commerce.
E-commerce has reshaped the way business is done. It is aptly tapping the interest of today’s customer who is mostly interested in the online market. The fast-paced environment has given rise to the e-commerce industry. Every company is trying to tap the online audience in order to increase their business, and the same is true for luxury brands.
Interestingly enough, not all consumers have embraced luxury brands moving online as much as one might expect. We're going to explore the factors stopping luxury brands and their audience from embracing e-commerce.
Luxury brands, as the name suggests, sell high-end products. Therefore, customers of luxury companies want to make sure they only buy original products. With knock-off brands trying to pass off their goods as original luxury products, the danger of deceit is very prevalent in the industry. This is one of the biggest reasons that stops customers from only buying luxury goods. Depending on the website, it can be difficult to verify if an online seller is truly selling a luxury good or an off-brand duplicate.
Danger of dropping the ‘exclusiveness' element
For years, luxury brand companies avoided the online retail market as they were frightened. They were scared that the reputation of exclusivity, elegance and mystique of their luxury products, and even their brand, may get lost in translation. As we know, the focus of luxury brands is based on holding exclusive events and interactions with their target audience. They used to think that through exhibitions and store visits, they can better explain their product to the audience, and at the same time, they can maintain the exclusivity and the core of their product.
Despite the skepticism of some luxury brands to enter the e-commerce space, there are several factors encouraging luxury brands to move online.
Meet customer demands
We are aware that the present day customer is more inclined toward online markets. The e-commerce industry is not limited to buying and selling clothes or shoes. From used cars to jewelry, everything can be bought online these days. Therefore, luxury brands have to keep up with the changing demands of the public. The target audience does want some exhibitions and store visits, but a majority of them want the products to be available online for easy purchases as well.
Advanced ways to offer a personalized experience
The growth of new-age social mediums including Pinterest and Instagram play a significant part of discovery and research. Therefore, it is not right to ignore these platforms, which help the luxury brands to offer a deeper, and much more customized experience to clients. Through images, and even videos, companies can exhibit their offerings in a more fascinating manner. All they have to do is devise a proper plan to execute their strategy. The companies that have jumped into the world of e-commerce know social media can play a valuable role in their business. Social media is a great way to close the gap between online and offline luxury experience.
Some companies even have chatbots specially designed to enhance the journey of buying luxury brands. With the help of the chatbot, present on the homepage, it is very much evident that the luxury brand is extremely interested in interacting with the customers and knowing their needs.
Strategies to amplify the conversion rate
One of the key factors of successfully doing business online is devising proper plans to convert leads. Attractive leads are important, but conversion rate benefits the company in terms of revenue. Qualitative research processes like customer interviews and surveys help businesses understand the target audience in-depth. This methodology works wonders for luxury brands.
It is always better for brands to communicate the plus points of what they're selling to the audience, and a company can do that with the help of emotional appeal, which creates positive feelings around your products.
Overall, it is very important for luxury brands to explore e-commerce development fully. However. just taking a business online is not enough, it has to be empowered with powerful digital marketing strategies. Things like SEO, social media campaigning and email arketing can deliver more customers. With a specific market like luxury brands, perfecting these strategies is vital for your business to find success online.