Published on: 13 Jan 22  |  Reading : 4 minutes

Digitising luxury, essential for the sector’s survival

With innovation and creativity, discover how the luxury sector is renewing itself given the growing digitisation of the retail sector, in order to win new customers.

Although the luxury sector has been somewhat reluctant to carry out its digital transformation, it is currently the business sector which offers the greatest number of novelties, original experiences and innovations to stand out and attract. As how can it deal with the need to modernise and facilitate access to its products when the core of its identity, its prestige and its attractiveness relies on rarity and exclusiveness? The large luxury brands have been able to demonstrate their characteristic boldness and creativity in digitising the sector. The key feature of digitising the luxury sector? An identity which speaks to the younger generations, the upcoming consumers they need to seduce.


Premium consumer experiences offered by the luxury sector

The luxury sector offers consumer goods of second necessity which are defined by their rarity, their excellence and their high prices. The sector is distinguished by a quality of service that is ultra-personalised and premium, in favour of an original experience intended to create strong desirability among consumers. Digital luxury therefore could be viewed as somewhat contradictory since digital technology tends to make things more open to competitors.

However, this drawback can be overcome by reversing its standpoint: easier access does not necessarily reduce the exclusivity and rarity of a product, but may, on the contrary be an innovative gateway to reach a new class of consumers, which is a real growth lever for the brands. Because digital technology is a new purchase habit and a way of continuing to stand out and increasing brand awareness. The luxury sector has therefore seized this opportunity in order to respond to the new consumption habits, or even exceed consumer expectations to make them happy and even more to surprise them. The customary luxury of bespoke products multiplies in-store services and experiences, to enhance proximity and the sense of service at each step of the customer journey.

By taking into account the new consumption behaviours, digitising the luxury sector provides better knowledge of customers thanks to the collection of data, in order to offer them a premium experience and to continue to make them dream. Despite its hesitations, the luxury sector is now one of the most innovative and creative in this field, and is continuing to forge stronger links with their customers.


The use of technologies for an exclusive customer relationship

One of the differentiating strengths of the luxury sector is the exclusive and special relationship it has with its customers. It relies on the close connection it creates between the luxury brand and the consumer who owns their product and who feels valued by it. With regard to digital technology, it promises to strengthen customer knowledge and to structure exchanges thanks to data collection.

With what potential? A golden opportunity to develop experiences which are increasingly ambitious and personalised, to increase satisfaction and a greater feeling of exception. The brands are therefore able to expect an enhancement of their image thanks to the digitisation of the luxury sector, as its viral nature makes it a fantastic growth lever. Between reviews, shares and social media, the brands no longer hesitate to offer “instagrammable” experiences with the help of influence marketing, to create a real community around their products.

By making people the focus of their attention, the luxury houses maximise the impact of their offerings and services thanks to data: this data is key for analysing consumers’ behaviours and purchase signals in order to understand expectations and anticipate needs to be able to make more conversions. Monitoring customer reviews and interacting with your community is the opportunity to make a brand image more human. The constitution of dedicated services and the use of tools to offer premium support are two ways of marking an attachment to customers, to promote your difference and to favourably affect your sales. Digital luxury produces an unbeatable level of service to make the purchase experience a delight and to provide satisfaction and loyalty.

Their use of technologies (Augmented Reality for fitting, virtual reality (VR), voice recognition combined with artificial intelligence, drones for faster deliveries) for original services and experiences for customers with an appetite for exceptional and immersive experiences.


The gradual digitisation of the luxury industry

The brands surprise their targets by providing exceptional, multisensorial experiences, or even artistic experiences in their sales outlets. A store visit must create and even maintain a need, so as to make a new customer a regular one. The luxury industry is copying e-commerce practices, with stores which carry no stock but which offer efficient ordering and delivery services which are increasingly fast. Here again the challenge is to reproduce the fluidity of the online experience, while maximising the advantages and experience of the in-store visit. Boosting their prestige and expertise while placing digital technology and innovation at the centre of the customer experience, is what the digitisation of the luxury sector promises.

This is where interactive digital signage comes into play, as it becomes a relay of digital store fronts within physical sales outlets. No means should be overlooked to offer a heightened and immersive sensorial experience.

The British brand Burberry, is a pioneer of digitising the luxury sector with its monumental and connected installations in its famous London concept-store. Touchscreen tablets and interactive screens, placed in strategic points of the store enable customers to order, view the catalogue and also pay for their purchases. Time-saving, an enhanced brand image and personalisation, digital signage is the ideal tool to offer a remarkable customer experience. Attractive and interactive, it heightens attention and transfers information in an instant, in a centralised and automated way.

Fashion-show videos, interactive catalogues, personalisation platforms or advertisements, digital signage offers brands a dynamic showcase, a fantastic space of expression. It is one of the most cost-effective ways of enhancing your brand image, generating in-store footfall and maximising your sales. Cenareo and its management system dedicated to digital signage meets the needs of the digitisation of the luxury sector, for bespoke communication offering a unique premium experience.


Generation Z, the customers of tomorrow and a new luxury target

The luxury sector has understood that 15-24 year-olds, called Generation Z, are tomorrow’s consumers. Quite naturally, they are now the new target to develop, thanks to several levers.

In addition to collaborations which are unmatched ways of integrating the codes of another entity, for the short-lived moment of a mix & match where anything goes, the luxury goods houses are intensifying their efforts to extend their empires. As well as an active and essential presence on social media, in particular the latest one, TikTok, some brands have expanded their range of services by offering sales over the networks, the creation of Instagram filters for trying products, advisory services over video as well as the use of augmented reality. Houses such as Gucci or Hermès are also venturing into the online games segment, a successful strategy in the gaming era.

More about the solution

Looking for powerful tools to generate qualified traffic and offer an original experience to your customers? Cenareo supports businesses in deploying their marketing strategy, thanks to its system dedicated to digital signage. Create and broadcast impactful multimedia content on your fleet of screens to surprise and increase your customer loyalty.

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