How digital innovations are changing the definition of luxury and impacting luxury retail
Luxury has long been associated with exceptionality, superiority, and exclusivity. Having said that, the luxury market is changing dramatically in the internet age. Being a high-end luxury service management firm, we have closely watched these developments and have modified our tactics to satisfy the changing needs of the contemporary customer.
The Digital-Savvy Consumer
Modern luxury buyers are more technology-aware, and they anticipate flawless online experiences that emulate the customization and exclusivity of classic luxury. A survey by Bain and Company predicts that the country’s fast economic growth will cause the luxury market in India to rise to 3.5 times its current size, from US $85 to $90 billion, by 2030. Based on these projections, India is expected to have the fastest-growing luxury market worldwide.
In the era of digital technology, luxury is more than just having expensive goods—it is about going on a one-of-a-kind adventure that is catered to personal tastes. Personalized experiences are what the modern customer needs and technology makes this possible on a never-before-seen scale. For example, big data analytics and artificial intelligence (AI) enable luxury firms to provide customized suggestions based on a customer’s past browsing and purchasing behaviour.
A Boston Consulting Group study claims that premium brands might see a revenue gain of 10% to 30% because of customisation. Firms offering luxury services today use AI to improve client interactions so that every customer feels appreciated and understood. The options are unlimited, ranging from tailored product offerings to individual styling assistance.
Serving contemporary luxury consumers requires an omnichannel approach. Whether they purchase in-person or online, they anticipate a flawless experience. As many as 92% luxury customers, according to Deloitte, demand a consistent brand experience over all channels.
The Rise of Experiential Luxury
The new currency of luxury is experience. Modern buyers place a higher value on one-of-a-kind, unforgettable experiences than material goods. The rising demand for upscale vacations, spa treatments, and good dining experiences is indicative of this trend. According to a survey by Bain & Company, the rise of experiential luxury is surpassing that of personal luxury items, expanding at a rate of 5% each year.
The Role of Technology
Technology will continue to be crucial to the development of luxury as we move to the future. Technologies like blockchain, augmented reality, and virtual reality (VR) have the potential to completely change the luxury market. For instance, blockchain guarantees the legitimacy and traceability of premium items, while virtual reality (VR) can provide immersive brand experiences.
Businesses are using such technologies, including blockchain to ensure product authenticity and integrating VR for virtual showroom tours. These developments improve the whole luxury experience as well as client trust.
