Arab Luxury World 2015 wrapped up day one with a few final talks, one of which was presented by Havas LuxHub’s global CEO, Isabelle Harvie-Watt, who spoke on the “Arabian Luxury Consumer Journey”, based on a proprietary global survey, the Luxury Consumer Journey. This survey, according to Harvie-Watt, provides the industry with a “clear understanding of the strategic roadmap luxury brands have to adopt and put in place if they want to survive”. She explained that presently, luxury is becoming less about having and more about experiencing.
According to the survey:
- 16.5 percent of global consumers prefer online retail
- 80 percent of global consumers prefer in-store shopping
- 68.5 percent of global consumers make a product-decision before shopping
- 43 percent of global consumers compare prices on Smartphones in stores
- 37 percent of global consumers take photos on their Smartphones in the store
- 57 percent of global consumers do not follow luxury/fashion brands on social media
- 30 percent of global consumers want product customization
Harvie-Watt continued to describe a luxury and branded world where experience will begin to replace the focus on the product. Brands, especially those in the luxury market, that are focusing on providing a holistic experience for their consumers will get better engagement and, therefore, better sales.
During her talk, Harvie-Watt revealed LuxHub’s five guiding principles for luxury’s strategic roadmap:
1) Think like a platform – Ask how to create new customer value and what are the new ways to consume it, deliver it and scale it.
2) Understand your data – Seamlessly combine the tactile and sensory richness of the physical store with the efficiency and measurability of the digital world.
3) Your store is your marketing channel – Unite all your retail channels with a strong brand-value proposition and deliver it as a coherent, customer-centric experience.
4) Organize for innovation – Corporate silos, conflicting business interests, dysfunctional back-end systems and misaligned sales incentives are not the future of luxury.
5) Know your customer – To remain relevant with the next-gen luxury consumer, think of yourself in terms of experience and technology. Blend the style and craftsmanship of the product with function.