The allure of luxury goods

The results of the UK Luxury Benchmark survey from Ledbury Research, run in partnership with the Walpole – the UK’s luxury industry body have just been released.

Reading through the summary of findings from the report, it is very obvious that the market dynamics are changing, especially where and when the purchase is made. BRIC markets are in, and the marque of luxury appeals to a a much wider, emerging market, where the consumers are younger and mostly found online.

Following are the highlights..

UK Luxury Benchmark Report 2012

– The UK luxury goods market stood at £5.8bn by the end of 2011.
– The internet has extended the reach of luxury brands: today’s luxury consumer is new to the brand, younger, and found online.
– Tourism remains a key factor in the success of the UK luxury market, and 63% of brands have made plans to specifically target this audience.
– Though London dominates the revenues of the luxury sector in the UK, 60% of stores are based outside the capital.
– Looking abroad, British luxury brands are heavily involved in overseas operations. There is strong interest in the BRIC economies, China in particular, but other emerging regions are beginning to make their mark.
– Assessing the marketing activity of the leading brands, it is clear that focus remains on reaching these younger consumers and growing the client base.
– While 74% of British luxury brands are optimistic for the year ahead, many have expressed a level of cautiousness. This is reflected in the mixed expectations for sales in 2012.

SoLoMo – the mantra for 2012

The talk on the grapevine is that this year is SoLoMo, and if you are feeling slightly lost, that is Social, Local and Mobile.

In marketing, we have all seen the major convergence of channels, and how social, local, and mobile work together as part of an integrated initiative. These three concepts reach to the very heart of a customer’s experience.

Social is what we all do as humans. It is all about how we interact, engage and share experiences, driving our behaviours and influence the behaviour of others.

Local is targeted, reaching out to deliver pertinent messages that are relevant to our immediate environment and handpicked to our tastes and location.

Mobile is key to our lives today. We are always on-the-go, and expect our products, services and experiences to follow suite.

Smart technology makes SoLoMo possible, allowing us as consumers of products and services to interact here and now. SoLoMo is revolutionary in its simplicity. It changes the way we access and process information.

Mobile applications now enable us to search for offers on products and services as we physically move into the area of consumption. Applications detect our location and provide directions. They push offers based on our criteria and location, and even allow us to like or share our experiences in real time.

SoLoMo ultimately provides a complete customer service solution, enhancing any purchased product or service. Mobile applications are fast becoming a key touchpoint in the brand experience and customer journey and integrating targeted loyalty programs into the mobile website experience will be key in delivering this customised user experience.