Special Session: Evolution of the Luxury Industry in a Digital World

Abstract

Luxury brands, who have built at least part of their value on traditions and heritage, cannot ignore the increasing expectations from younger generation on digitalization. How luxury marketing can develop an optimal strategy remains a key question for both managers and practitioners.

During the session, we will debate the factors that influence future strategies of marketers to protect and strengthen their luxury brands in the new era of internet and social media. The session will discuss a number of specific topics and issues that are currently being discussed in academia as well as among professionals in the luxury industry.

Using a combination of expert panel insights and a town hall interactive format between panel members and the audience, the session will focus on the following questions:

• 1. How can luxury brands best balance the quest for authenticity/heritage/tradition together with the need for relevance/modernity/innovation?

  • Luxury is appreciated for its savoir faire, craftsmanship, and elegance which are rooted in tradition and history.

  • At the same time, customers—younger audiences particularly—appreciate to stay connected to and go through new digital experiences with their favorite brands.

• 2. What should be the right balance between proximity/accessibility and exclusivity/asymmetry of information?

  • Internet poses a question of accessibility (anyone can go to the website) while luxury brands are thought for their exclusivity/inaccessibility.

  • With Instagram and social media, customers are invited to voice their opinion, influence marketers, cocreate. While it enhances customers’ brand knowledge and engagement, one might question the legitimacy of the customers, especially in industries like fashion and luxury which require a specific domain expertise.

“Image-driven social channels like Instagram are changing the way consumers discover and form affinities for brands,” Mr. Langie said. “The beauty of these communities is that conversations are frequently led by consumers.”

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Luxury brands, who have built at least part of their value on traditions and heritage, cannot ignore the increasing expectations from younger generation on digitalization. How luxury marketing can develop an optimal strategy remains a key question for both managers and practitioners.

During the session, we will debate the factors that influence future strategies of marketers to protect and strengthen their luxury brands in the new era of internet and social media. The session will discuss a number of specific topics and issues that are currently being discussed in academia as well as among professionals in the luxury industry.

Using a combination of expert panel insights and a town hall interactive format between panel members and the audience, the session will focus on the following questions:

• 1. How can luxury brands best balance the quest for authenticity/heritage/tradition together with the need for relevance/modernity/innovation?

  • Luxury is appreciated for its savoir faire, craftsmanship, and elegance which are rooted in tradition and history.

  • At the same time, customers—younger audiences particularly—appreciate to stay connected to and go through new digital experiences with their favorite brands.

• 2. What should be the right balance between proximity/accessibility and exclusivity/asymmetry of information?

  • Internet poses a question of accessibility (anyone can go to the website) while luxury brands are thought for their exclusivity/inaccessibility.

  • With Instagram and social media, customers are invited to voice their opinion, influence marketers, cocreate. While it enhances customers’ brand knowledge and engagement, one might question the legitimacy of the customers, especially in industries like fashion and luxury which require a specific domain expertise.

“Image-driven social channels like Instagram are changing the way consumers discover and form affinities for brands,” Mr. Langie said. “The beauty of these communities is that conversations are frequently led by consumers.”