Arab Luxury World 2018 came to an end and while we at OMD have picked up a few trends in our last blog post, I have particularly noticed a few opportunities for luxury brands that plan to be commerce ready. As I keep up with fashion week and all the new collections and trends that grace my social feed as well, seeing the world of media and fashion collide I realize that these are no longer the only trends to watch closely. It took them a while, but luxury brands have embraced digital and are evolving their businesses as a result. Here are three opportunities happening within luxury fashion, and how to leverage them to get commerce ready:
- “See now, buy now”- this trend has been picking up for the last three years, and it isn’t going away anytime soon. With the advent of live coverage on social media from the front-row, creating a shoppable runway show leverages the on-demand economy to maximize returns.
- Opportunity- data and marketplaces: To make such a model happen means a change in production and distribution operations. The latter can be facilitated by partnering with marketplaces to release collections exclusively to drive revenues. Luxury brands can also harness real-time digital data like the overall buzz and spikes in search to provide indications on which SKUs to focus marketing budgets on or what styles pique customer interests in a particular market. Visual search tools can monitor the category to look at the most shared or talked about pieces and incorporate these findings into creative assets.
- Street style: The street style of influencers outside the shows generate as much online coverage as the shows themselves, and as a result have influenced fashion trends. Luxury brands have embraced this by incorporating elements into their new collections over the past few years. The topic of influencer impact may continue to be debated, but there’s no doubt- used correctly- they are a power to be reckoned with.
- Opportunity- shoppable influencer content: luxury brands need to make influencer partnerships and collaborations work harder to drive incremental revenues for their business. This involves ensuring what they wear is easily accessible to buy online through a seamless experience. Instagram, for example, has rolled out its shoppable posts feature globally, which drastically enhanced the current experience. Using influencer content within a chatbot is another good way of generating that desire which drives transactions.
- Millennial brand appeal: From banning the use of fur, to collaborating with millennial celebrities on clothing lines, to becoming more inclusive in who walks down the catwalk, legacy fashion houses are working hard to revitalize their brands so they can appeal to millennials and their values.
- Opportunity- personalized engagement of consumers: Millennials are digitally savvy, and with all the content and brands they’re being targeted by, they’ve become more informed and sophisticated in their choices. Relevance is key and using CRM data well is imperative to this. From mailing list segmentation and A/B testing, to linking up CRM data to dynamically serve personalized ads, providing an on-site recommendation assistant, and even integrating with in-store systems to create a single customer view and a seamless omni-channel experience to transact.