How To Make Your Luxury Brand Successful in 2022

With 2021 coming to a close, the effects of the global pandemic can be clearly seen in the luxury market. The change in consumer habits has changed the future of luxury brand marketing, and created new challenges to face. In this blog, we will explore how luxury brand marketing has changed, new opportunities and challenges which brands will face, and how brands can change to adapt to changing demographics, buying habits and environments. How Has Luxury Brand Marketing Changed in 2021?It’s no secret that the pandemic was particularly difficult for luxury brands, with the luxury personal goods market falling by 23% in 2020, Before COVID-19, luxury brands often focused their advertising efforts on OOH, and relied on in-store sales and experiences to complete the funnel, so with stores spending the majority of the year closed in 2020, brands were forced to adapt. According to leading experts in brand marketing, luxury brands have taken to digital and social channels, in line with the change in consumer habits that has led to more customers wanting to be able to access digital communities, customer service and curated experiences online. Creative Opportunities For BrandsThe appeal of luxury brands is to deliver a unique experience to consumers, and this shift to digital has increasingly made brands more creative with this, with a great example of this being Balenciaga. Their Fall 2021 collection was released to the public in the form of a video game, which allowed them to access wider audiences and subsequently resulted in much higher brand awareness.The demographic for luxury brands have changed as well, and it is predicted that by 2025 55% of the luxury market will be millennials and Gen Z. The younger audience is digital-first, so increased spending on digital and social allows brands to connect with that audience, and take advantage of new and exciting formats and channels to do that, like Tiktok. How To Make a Brand SuccessfulLuxury brands are successful because they offer something unique, exclusive and timeless, with a brand story that resonates with their audience. Brands also need to evolve, and mindset more often than not is what can make or break a brand. Not accepting the ‘status quo' is what makes brands excel, and create new experiences and tailored offerings to their audience’s ever-changing needs.Want to learn more about how to make your brand stand out? Get in touch!