Consumer shifts in 2024

Consumer shifts in 2024

As the profile of luxury consumers changes, luxury brands face the challenge of adapting their digital and physical experiences to new expectations and demands. Younger generations, especially Generation Z, have different criteria and standards when it comes to online shopping. Their quest for digital excellence often goes unsatisfied, with less than 50% of luxury shoppers expressing satisfaction with their overall digital experience. Even more alarming, only 11% found the experience overwhelming.


The key issue is that the digital experience of luxury brands often lags behind mainstream competitors in terms of technical features and delivery services. This shortcoming is particularly pronounced in categories where physical product try-on is key, such as sunglasses, where the online experience lags the in-store experience by 18%. The challenge facing luxury brands is how to effectively integrate the digital and physical experience, to ensure that the online presence is as immersive and satisfying as what is experienced in physical stores. This requires an innovative approach, which may include advanced technologies such as virtual reality or augmented reality to simulate the product trial experience, improve the user interface and experience, and improve logistics and delivery services.


To remain relevant and attractive to modern consumers, luxury brands must develop digital strategies that match the high standards of their brick-and-mortar stores. This includes not only technical improvement, but also the creation of a digital environment that reflects the exclusivity, quality and uniqueness of the brand. Through such an approach, luxury brands can maintain their prestige and relevance in the digital era, staying true to their essence while adapting to new generations of consumers and their expectations.


To overcome the satisfaction gap between physical and digital experiences, luxury brands must adequately meet the emotional and functional needs of their consumers. And while functional needs, such as speed of delivery and ease of process, are important, emotional needs play a key role in creating a true luxury experience. The lack of human interaction and reassurance during online shopping has a strong impact on consumer dissatisfaction.


In addition, analyzes indicate that digital dissatisfaction is more pronounced in certain geographic regions, as well as among certain demographic groups. Understanding these differences can help luxury brands adjust their online strategies to better suit the needs of their target audience. In light of these challenges, luxury brands must intensify their efforts to create an online experience that reflects the prestige and exclusivity expected of them. Personalization, innovation in the digital space and targeting the emotional needs of consumers will become key elements in building customer loyalty and satisfaction in the luxury industry in 2024.


In 2024, luxury brands will work intensively on transforming their communication strategies in order to achieve a deeper and more authentic connection with their consumers. In a world where consumers are increasingly seeking authentic experiences and a personal relationship with brands, a key strategy will be to focus marketing efforts on brand storytelling. This will include creating an emotional connection with consumers through various channels, including social media, digital platforms, as well as traditional media.


One of the most effective ways to achieve this kind of connection is to use real personalities who are at the heart of the brand – founders, creative directors, or key designers. Personalities like Miuccia Prada, Jonathan Anderson or Brunello Cucinelli represent more than just names; they are living symbols of the brand and its values. Through their stories, anecdotes and personal perspectives, brands can create organic content that reflects the authenticity, passion and commitment behind each product. This strategy of storytelling and personal connection is not only a tool to increase brand visibility; it is a way for brands to take deeper roots in the emotions and lives of their consumers. Authentic stories and personal perspectives allow consumers to connect with a brand on a level that goes beyond the physical product, creating a strong emotional response and sense of belonging.


In 2024 and beyond, this practice is expected to become more prominent as luxury brands strive to stand out in an increasingly crowded and competitive market. Through authentic storytelling, innovative storytelling and leveraging personal narratives, luxury brands can create unique and invaluable connections with their consumers. However, in addition to emphasizing brand personality, there are other strategies for building community that do not necessarily depend on individual personalities. Brands with a rich history, like Hermès, build stories of craftsmanship and tradition, providing consumers with deeper insights into the brand’s unique qualities. At Tiffany & Company, the brand was revitalized after its acquisition by LVMH, balancing well-known brand stories and new campaigns with stars like musicians Jay-Z and Beyoncé to reach a new generation of consumers. Emotional connection with consumers is becoming increasingly challenging in a world where attention is scattered in digital reality.


To create memorable shopping moments, brands will increasingly turn to innovative cross-channel activations. Immersive stores, with visually striking spaces and interactive experiences, are becoming key elements of attracting consumer attention in a world where attention is increasingly scarce. Examples like Jaquemus’ handbag vending machines or Chanel perfume-themed restaurants illustrate creativity in creating spaces that not only attract attention, but also provide consumers with a unique experience.


The strategy of merging marketing efforts with similar creative industries such as music, film and sports is becoming increasingly important for luxury brands that strive to remain relevant and attractive to their customers. In 2024, this trend is expected to continue to grow, with brands looking to strengthen their presence through cross-industry collaborations, joint ventures and sponsorships.


LVMH has already laid the foundations for such a strategy with the announcement of its “premium” sponsorship deal for the Olympic and Paralympic Games in Paris 2024. This move not only confirms their commitment to the sport and the global event, but also allows individual brands within the group to make their own unique contribution in the run-up to Games. This strategy is an example of how luxury brands can use major international events to promote their values and heritage. Likewise, Kering’s owner, François-Henri Pinault, took a similar step by buying a majority stake in the Hollywood talent development company through his family firm Artemis. This investment represents a strategic move to strengthen ties with the film industry, opening new avenues for the integration of luxury brands into the world of entertainment and culture.


These two examples illustrate how luxury brands can use strategic partnerships and sponsorships to expand their market presence and increase their visibility in different sectors. By integrating into adjacent industries, luxury brands not only increase their relevance among a wider range of consumers, but also create new ways to tell their stories and represent their values.


Therefore, in 2024 and the following years, the continuation and intensification of such strategic moves by luxury brands is expected, in order to keep up with dynamic changes in consumer preferences and market trends. Investing in cross-industry collaborations, joint ventures and sponsorships will be key not only to maintaining the brand’s relevance, but also to further strengthening and growing it.


In the race to success in 2024, luxury brands are aware that it is time to change priorities and focus on long-term strategies. In order to achieve long-lasting affinity with their consumers, it is crucial to set a sharp focus on customer perception, develop authentic brand stories and create innovative shopping experiences. This transition requires the support of long-term channel strategies and investments, as well as the wise use of brand-building tools. CMOs and their teams are now faced with the need to be laser-focused on creating a cohesive brand story. In addition, it is crucial to work with creatives, brand experts, analyze data, manage finances and strategy leaders to achieve a harmonious and strong brand presence. After a year of focusing on marketing performance, now is the time to invest in hiring and training teams to strengthen the brand’s marketing capabilities.


In a world where there is more content and consumers’ attention is increasingly difficult to keep, brands must choose their marketing efforts wisely. Instead of constantly refreshing the brand identity or generating a constant stream of content, the focus should be on “less is more”. Carefully crafted storytelling that reinforces brand clarity and maintains a coherent personality has a greater impact on consumers. As many as 68% of consumers feel there is too much sponsored content on social media, while 65% trust fashion influencers less than in previous years. Consumers are increasingly looking for authenticity, fun and relatable personalities, and this opens the door to a “new wave” of creators. Those who manage to embrace a less polished aesthetic, quirkiness, humor and vulnerability become key to capturing and retaining the attention of online consumers in 2024. Brands will need to break established routines and explore new avenues through collaborations with creators to stay relevant in a dynamic digital environment.


Through all these changes, it is crucial to maintain brand clarity and maintain a coherent personality. It will require a change in mentality and a shift towards measurement focused on long-term, strategic horizons instead of immediate return on investment. Blockbuster marketing campaigns can create a temporary buzz, but keeping consumers’ attention after that becomes a challenge. Consumers want consistent and authentic brand stories, and the success of brands like Patagonia indicates that maintaining consistent storytelling about consumers’ everyday lives is key. To conclude, the year 2024 will be about focusing on quality over quantity, about creating carefully constructed stories that will strengthen the brand, and about maintaining authenticity in a world of ubiquitous content. With increasing consumer demands for authentic and less sponsored experiences, brands must be agile and innovative in their approach to capture and retain the attention of their target audience.

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