A Luxury Brand offers exclusive and rare products and/or services. The whole premise of a luxury brand is a curated, aspirational experience that builds on every purchase. However, looking ahead, luxury brands will need to do more.
As noted in this recent article from "The Sociology of Business" by Global Chief Brand Officer Ana Andjelic (fan girl here!), she writes: "In the past decade, luxury brands enjoyed quick growth (from 2019 - 2023 sales grew thirty percent), and did not think what will happen when this growth slowed down."
Consumers are savvier than ever, and with that, they expect a level of validation from luxury brands in terms of quality, experience, and worth.
Top 5 Luxury Marketing Trends for 2025:
1.
SUSTAINABILITY AND UPCYCLING
With the fragility of our planet and the impact we as humans create, more consumers are turning to brands that are intent on reducing their environmental footprint by practicing sustainability. The overall goal for luxury brands is to reduce the need for new raw materials, reuse scraps, and create less wasteful packaging in tandem with bolder, minimalistic graphics to carry the "clean" vibe forward.
From Style Lujo, Joseph DeAcetis shares how companies such as Louis Vuitton are "redefining luxury through sustainable fashion" with their Upclying Program. By definition, upcycling is creating something of more value from something of less value, such as unused or recycled materials.
With their program, Louis Vuitton is creating exclusive limited edition pieces, thereby positioning itself as a luxury brand focused on the future of fashion with sustainability practices already in place.
Takeaway? Show the world that you care about the planet and are doing something about it while still delivering unique pieces that make a bold statement to the world.
2.
HERITAGE AND CRAFTSMANSHIP
While luxury brands are generally known for being more innovative in design and materials, many consumers are unaware of the stories behind powerhouse luxury brands such as Hermès or Bruno Cucinello. Now is the time to highlight the brands' history.
Legacy or heritage brands must highlight their artisanal quality and timeless craftsmanship to reinforce their legacy and validate their price points.
By doing this, the luxury brand resonates with consumers because they will feel more emotionally connected. In contrast, a luxury brand that is fast and furious and punches out new products for profits builds no emotional connection to its audience.
Takeaway? Luxury brands must dive into their archives, revisit their DNA, and build on the customer journey and brand experience.
3.
PERSONALIZATION AND DIGITAL EXPERIENCES
By creating more personalized campaigns targeted to their Buyer Personas, luxury brands will want to create immersive online experiences to be more visible. As the technology toolbox explodes, consumers demand a more personalized journey throughout their brand experience.
Luxury brands need to engage their markets more by using storytelling and the latest technology to interact with consumers the way they feel most comfortable with - not the other way around.
Takeaway? Foster deeper connections and appeal to a broader consumer base by building personalized campaigns that inspire interaction and aspiration.
4.
STORYTELLING
As mentioned in my "I want more metrics" video, storytelling has become integral for all brands. Luxury brands must revisit their mission statement and core values and integrate them into their marketing campaigns to forge a deeper connection with their clients.
Building a narrative shows that they are more than a company that sells expensive products; they stand for their principles. A brand brings its audience closer by sharing its core values in the marketing collateral because consumers feel more connected to the brand. A sense of "we share the same value sets" leads to "I want to buy from this company."
Takeaway? These days, people are looking for honorable brands. A luxury brand will enhance its relationships by creating storytelling campaigns that reflect a brand's core values and mission statement.
5.
ACCESSIBILITY
Enabling financial tools that allow more customers to buy is how luxury brands can capture market share.
Creating a mobile-friendly website with e-commerce functionality, making it easy for consumers to buy, is another tactic that works.
Believe it or not, many luxury products are still unavailable to purchase online. Often, people give up and go elsewhere where it's easy to buy.
Finally, luxury brands must integrate FinTech to include alternative payment methods and offer options such as BNPL to help aspirational customers make a purchase.
Most people want to live the good life. They want to have nice things, and they want to feel good. Luxury brands need to make it easy for them to get there.
Takeaway? Give people the chance to buy in the middle of the night with a tap or a click using an e-commerce, mobile-friendly website that offers multiple forms of payment.
Until next time, Keverne Denahan
Luxury Brand & Marketing Strategist
Fractional CMO
Copyright © Keverne Denahan 2024