Studies by consultancy Bain & Company indicate that after the pandemic, there will be a recovery for the luxury market. Still, the sector will be profoundly transformed.
The coronavirus crisis will force the industry to think more creatively and innovate even faster to meet a number of new consumer demands and channel restrictions.
Among the main changes are emotion and regionalism.
“Let’s look at luxury and wish that it really is close to us and that those purchases are also part of our history.
If luxury can adapt to new realities, there will be consumer adaptation.
Shopping will have more meaning. And so, we are not going to buy just because we need to, but because it makes sense and because that money is benefiting other communities.
So, social and environmental responsibility will bring more meaning to this purchase, and luxury, with adaptations, has full autonomy for this movement to happen”, explains the professor of luxury market at the Instituto Superior de Administração e Economia (ISAE/FGV), Adriano Tadeu Barbosa,
According to Bain, as consumers slowly emerge from lockdowns, the way they see the world will change.
Among the changes are in-store security, which becomes mandatory, and combined with the “magic” of the luxury experience.
That is, brands must adopt creative ways to attract customers to the store or to bring the product to it.
Meet other 05 trends for the luxury market by 2025:
- China’s domestic market growth – Luxury sales within the country have risen 18% in the last year to €23 billion. The numbers point to the strength and size of the Chineses’ desire to consume products in this segment. It is expected that by 2025, they will be responsible for 45% of the AAA market (today they are at 32%)
- Digital channels – Internet sales have fallen into people’s tastes, and even if consumers favor in-person buying, they will go through apps and search sites before making the purchase. The challenge of brands will be to offer a distance experience, whether with differentiated delivery services, or other facilities for the consumer.
- The reinvention of stores – Physical selling points like the ones we know today tend to disappear. And stores will emerge qualified to offer consumer and branding experience. It’s time to plan your brand’s future.
- Super personalized service – It is not today that the luxury consumer should be pampered and remembered. But technology should help even more in this sector. Brands must rely, for example, on geolocation devices that will warn of the arrival of an important consumer. Biometric sensors, in turn, will be able to inform about the state of mind and emotions of that person.
- Agility – Digital life has made immediacy an important currency to generate business. This applies to customer service and their desires, as well as for internal changes in administration, if necessary.
Faced with an unprecedented crisis and a new post-pandemic world, luxury players need to act now to create their future. All aspects of the market, from creation to distribution, from marketing to supply chain and, especially, interaction with end customers, should be rethought.