Marketers of luxury brands in 2023 daily face questions as – How to stay relevant? How to keep the interest and reinvent the consumer exictement? Likewise, an everlasting question that pop ups daily for marketing executives is how to mantain a balance between performance marketing – (sales), and brand building – a more intangible but rather valuable asset, measured by users’ resonance and recognition. In other words, should marketing tactics focus on generating sales or building a strong brand image? The correct answer is both and remains a current issue in 2023, but how should we acquire it?
According to the last marketing research (Bof, 2023), the keys for brands to thrive in 2023 are:
- Use diverse channel mix and be cohesive thruought all the channels. Do not focus only on digital, regardless of the proven digital marketing cost-efficiency. Combine reliable channels as out-of-home and product placement ads with social media channels.
- Place the brand wherever the consumer is, and communicate a consistant message to achieve consumer resonance. Instagram and TikTok are commonly used platforms, but is your brand on Be Real platform? The French originating app BeReal became world wide popular in mid-2022. The app sends only one notification —at random times each day, and notifies the user to take a photo. A user has two minutes to take a snap with front and back cameras simultaneously, which is shared instantly with friends. The app leaves no room for planned posting demanding rather spontaneus and authentic content.
- Use organic marketing. Find a way to get people talk about your brand without paying them.
- Invest in long term brand strategies and mantain consistancy to build a strong recognition. A roll model for consitant strategy is undoubtedly Chanel. The brand is adhered to respect the strategy of exclusivity and scarcity, and remains successful at it. Unlike the most luxury brands, Chanel still has no e-commerce presence, event after the pandemic. Refusing to drop the brand strategy and turn to sales, the brand still remains the most desirable and wildly profitable brand.
- Collaborate with influencers who can provide tangible evidence of their conversion rate. Influencers are no longer brand image advocates, they are a sales tool and must prove their ability to drive sales. Brands no longer question the investment in influencer marketing. Instead, the question is how to reach the target audience cost-efficiently. Influenser marketing sector has developed during the last years in a significant global industry and brands are just strating to understand how to leverage the content creators on social media and obtain the aimed KPIs.
- Invest in experience. Whether a pop-up store, events, or digital or physical experiential activation, brands must iniciate consumer excitement by telling a great story. As a most recent example, in February 2023, Moncler and Mercedes Benz hosted an immersive live event to unveil the collaboration materialised in the iconic G-Class dressed in Moncler Puffer Jacket! Not only the event generate immense thrill with the G-Wagen, but it also offered its invitees an immersive night that intersected art, design, entertainment, music, sport, and culture.