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Key Trends In Luxury Retail And What They Mean For African Travel

Key Trends In Luxury Retail And What They Mean For African Travel

The growing role of digital is one of the strongest trends in the luxury consumer journey, according to LuxHub, a newly launched luxury consulting boutique.

Owned by Havas Media with headquarters in France, LuxHub recently completed a global luxury survey of the top 10 percent of consumers by household income, MarketingInteractive reports.

It found nearly 57 percent of all respondents and 72 percent of millennials felt that luxury brands should engage with social media.

LuxHub identified five key trends in global retail for 2015, and two of them involve Africa. Here are eight points to take away from the report.

From MarketingInteractive.

1. Retail will move in three different directions to service the needs of luxury consumers. The digital channel will drive research and stocking up on favorite products, while brick-and-mortar stores will reach out to their clients through customized offerings such as express counters, “top-10 product” style kiosks and assisted shopping services. Lastly, entertainment is key as experience, lifestyle and theater drive the physical retail experience, while content will create pleasure in digital retail.

2. Given the ongoing softness in Europe and slowdowns in Russia and China, looking into new geographical areas such as Africa is rapidly becoming an alternative. While fashion brands including Zegna, MAC and Hugo Boss have recently opened stores in Lagos, Nigeria, the new luxury hotspot, online retailers are now shipping to Africa, and are starting to focus marketing efforts on this region.

3. Especially in Europe, luxury brands are increasingly relying on international travel and tourism to fuel sales, primarily from China, Russia, the Middle East, U.S. and now Africa. Tourists purportedly account for 55 percent of luxury sales in the U.K., 60 percent in France and 50 percent in Italy.

4. While in the past luxury brands attempted to offer multiple price points, brand confusion and erosion of luxury credentials was often the outcome. Now, luxury is being pulled in two opposite directions, and brands will need to choose sides: accessible or ultra luxe.

5. Media wise, magazines, newspapers and TV will become the new digital storefront reinventing themselves to allow customers to buy their favorite items, looks or beauty products straight off the editorial pages.

6. The men’s wear market is extremely bullish, growing at 1.5 times vs. womenswear. While 35-plus male consumers still dominate, the millennial generation drives retail spending through its modern aesthetic and digital knowledge. To which, many women’s wear brands are either launching or revamping their men’s-wear offering.

7. The openness of digital platforms dictates that to make luxury customers feel special, brands need to get personal. The rapid rise of Instagram, live streaming, and behind-the-scenes footage will leave consumers feeling like they’ve already experienced everything. Brands are now challenged with creating truly personal, fresh, and meaningful experiences.

8. Luxury brands will increasingly become media channels, creating content that is far richer than today’s aspirational blogs, videos and magazines. Retailers will offer multiple channels with high-quality and entertaining shoppable content updated on an hourly basis.

Read more at MarketingInteractive.