Part 2 of digital fashion marketing

Digital Fashion Marketing

Content 1. Introduction 2. Current situation Distribution Social media and digital tools Digital advertisement Shopping experience Customer relationship management 3. Future forecast Changing digital environment and attract customer Impact and opportunity of luxury fashion brand 4. Conclusion 5. Reference

Introduction With the rapid development of science and technology, digital becomes to an important part in our life, and make strong influence in luxury fashion brand. Digital tools and techniques available within the context of luxury fashion brand, as well as changing digital environment. It is obviously the influence from digital trend is not only for luxury fashion brand but also customers, digital changing consumer behavior that makes luxury fashion brands face more chances and challenges as well.

The report will include current situation and future forecast of luxury fashion brands that cover distribution in present, the using of social media and digital tools, the shopping experiences of luxury fashion brand under the digital trend, and the management of customer relationship management. For future forecast the report will mention the analysis of changing digital environment, discuss the best way to attract consumer, and in the future, the opportunities for luxury fashion brand.

1.

Distribution

Nowadays, many of luxury fashion brand main sales still in-store, but consumer’s shopping behaviour is changing because of digital technology, thus, luxury fashion brand is influenced at same time. It shows in 3 ways.

Firstly, customers shopping by e-commerce become more and more popular. According to the result of investigation, Internet users still increase on the basis of widespread, so that e-commerce users are grow visible. For example, during 2010 to 2012, Internet users of Canadians are increase from 80% to

Current situation

are grow 4% and 3% each.

83%, in the meanwhile, online orders are grow from $15.3 billion to $18.9 billion. That same year, also have a survey data shows 42% of Americans mostly shop online. It is worth mention that China’s luxury e-commerce trend.

The rates of China online shopper penetration of luxury fashion brands are achieve 51.8% in 2015. In short, growth rate of consumer shopping by e-commerce is remarkable.

Secondly, consumer shopping by e-commerce is more frequently.

Statistics suggest that customer who “do not shop online” is decrease from 20% to 12% in 2012, “shop 1-2 times a month” and “shop 3-6 times a month”

Eventually, consumer face more choice of e-commerce in present. Last year, customers shop by laptop/PC is decrease sharply from 63% to 47%, shop by mobile and social networking is new trend of shopping by e-commerce. Therefore, luxury fashion brand are making the buying channels diversification.

2. Social media and digital tools Social media and digital tools influence our life with no doubt, every 60 seconds have 510,040 comments on Facebook, more than 320 new twitter accounts, 694,445 search on Google etc. This shows social media and digital tools give very strong affect on consumer. Consumer get fashion trend or information from social media immediately, for example, people get newest runway photos from latest show on fashion week from Instagram or Twitter.

Burberry is the best example that how to connect and engage with cyber crowds using social media. For luxury fashion brands, lots of them are seeing the value of social

media, such as Chanel, which only recent years began post photos on official account on Instagram that got 1.7 million followers. Meanwhile, Burberry is now dedicating 60% of its budget to digital thanks to social media successes. On the whole, a lot of luxury fashion brands still sidelined with social media, but they know the affect from social media obviously that carefully monitoring and analyzing those conversations gives your luxury brands the chance to gain deeper insights into what your customers like – and dislike – and who's talking about your brand that clear brand position.

On the other hand,

Current situation consumer become more rely on digital tools that 1/3 consumer search on smartphone or website before visiting store, and 15% consumer in store activities is searching product or price on smartphone.

In short, social media and digital tools become

popular in consumer’s life that change consumer behaviour a lot, luxury fashion brand are seeing the value of them and start to using them to affect consumer as well.

Current situation

3.

Digital advertisement

In recently years, luxury fashion brand spend more on digital advertisement, especially on video and mobile, as well as social media. As the report mentioned before, customers are influenced by social media, and they are more relayed on mobile, so that make an increase rate of consumer get the information of a brand from digital advertisement. Thus, luxury fashion brand spend more on digital advertisement, it get more effect from the promotion. For the past of few years, luxury fashion brand do promotion on official platform like Facebook, Instagram, Youtube, Pinterest etc. For example, Cartier update advertisement video often, the videos are pay attention on storytelling, the meaning and spirit of the product as well as close to the image and culture of the brand that give a strong impression to consumer.

Coincidentally, Van cleef & Arpels use 3D skills to introduce the new collection “the poetry of time�. On the other hand, luxury fashion brand make their official website under the technology trend like a latest advertisement video played at first time. In short, nowadays, digital advertisement is more creativity, better for expand influence in bigger range, and make consumer know more about the brand identity or brand culture for luxury fashion brand.

4.

Shopping experiences

Even though the data shows that customers shopping online for luxury fashion brand are increasing in recent years, on the whole, luxury fashion brand sale still main in store. A part of luxury fashion brand can make order online that with simple and easy checkout process. Therefore, shopping experience of luxury fashion brand is generally old and normal. But under the digital environment trend, some luxury fashion brands understand and utilize digital and make potential power of the brand. Burberry is the best example of luxury fashion brand that use digital makes them as much as a media content company. “They

have launched a number of interesting ideas like live streaming their runways shows, a 3D holographic immersion film for its launch in China and the best e-commerce experience of any major fashion house that includes a trench coat builder that can yield over 12 million possible combinations.” And they did digital innovation in regent street store that “plasma tile video walls and touch screens streaming content bring a high-tech approach to the luxury retail experience in a larger-store environment.” Elsewhere, Louis Vuitton have rolled out “exclusive” salons, which focus purely on providing a bespoke bag design service.

However, luxury fashion brand realized that improve their shopping experience under the digital environment cater to customers.

Current situation

5.

Customer relationship management

Customer relationship management is usually cover the organize, automate, sales, marketing, customer services and technical support. Now, the strongest relationship which luxury fashion brand keeping is brand loyalty from customers.

For keeping this relationship with customer, luxury fashion brand is pay attention to marketing which target promotion. Such as promote on social media for brand identity that make consumer know deeper of the brand. On the other hand, luxury fashion brand are realized the value of technical skills that paying attention to improve technical support. As the report mentioned before that Burberry as a luxury fashion brand make itself a modern fashion company with high creativity to keep customer’s focus. Luxury fashion brand are improving customer service as well. They supply excellent customer service from shopping to after sale. Make customers feel luxury fashion brand worth they spend.

Current situation

Future forecast

1.

Changing digital environment and attract consumer

Based on current situation, it shows that luxury fashion brand stayed out of digital marketing still in traditional way generally, but now because of digital develop and influences customers behaviour so that luxury fashion brand is starting changing digital environment. A lot of luxury fashion brand created official account on different social media that sharing information and news of brand, even through a part of them post information several times a year. However, luxury fashion brand starting do promotion on social media, in the future luxury fashion brand just need use social media more frequently and shows brand identity clearly so that make strong connection with consumer to build great digital environment. It is absolutely a creative way to attract consumer in present because of social media making and will make strong influence for consumer.

On the other hand, for buying process, luxury fashion brand need do more innovation for better shopping experience to consumer.

Firstly, luxury fashion brand can improve digital tools for customer’s searching. Easy to understand and easy to find is the best way to attract consumer to close luxury fashion brand. Then, luxury fashion brand have space

to optimize online shopping for customer as well as checkout process. Such as cooperate with PayPal or Alipay make international customers more convenience. In the future, luxury fashion brand should make online shopping have more choice like in store shopping. Another example for luxury fashion

brand improve shopping experience definitely Burberry that the report mentioned before, the main point is in the future, how Burberry could keep the innovation of digital environment. After that, luxury fashion brand should improve product and customer service quality. In digital environment that e-commerce shopping will be more popular that product quality should shows on e-commerce way that high quality products will attract consumers with no

Future forecast

doubt. At the same time, customer service should keep in luxury fashion brand ways that in high quality even in e-commerce sale. Finally, special and typical packaging will attract consumer and give them strong impression such as Tiffany & Co. Thus, use digital marketing well can help luxury fashion brand do better in the future.

2. Impact and opportunities for luxury fashion brand 1) Social media using: develop the usage rate of social media in the future so that influence consumer behaviour and attitude of luxury fashion brand.

Gain customer insight: social media as a megaphone from consumer that luxury fashion brand can analysis the consumer who talking

about it, that can help brand clear the position, target consumer and improve themselves. Burberry has succeeded at last Christmas that grows 14% sale by digital offering.

Avoid the damage: it is particularly important that good reputation of a luxury fashion brand. Social media can build and manage the reputation of a brand to consumer.

Get the feedback: social media is the fastest

Future forecast

and best way to get real feedback and advice from customer.

Identify spokesperson of brand: as a platform that give consumer support from influencer. Such as blogger is the best spokesperson fashion brand that make influence to followers on social media.

International influence: it is worth to pay attention that China as a big spends on luxury fashion brand market, which with huge number of online shopping. Therefore, social media is the most useful way to promote and attract Chinese consumer for luxury fashion brand.

As we know, Facebook, Twitter and Instagram are forbidden in China so that luxury fashion brand should find the biggest social media as platform to promotion

social media opinion and fashion of a luxury

in China. According to survey, Weibo is the most popular social media platform in Asia and Wechat is the second, thus, in the future, luxury fashion brand that care about China market should pay more attention on China local social media.

2) Shopping experience: luxury fashion brand still have chance to improve website quality that closer brand image and make every products available online. For delivery that luxury fashion brand have a big space to improve in different ways, like the speed of delivery, delivery range and the price of delivery.

Future forecast

Conclusion

However, digital environment is changing in present, consumer is influenced a lot by technology, that luxury fashion brand are trying to make themselves under the trend of digital market but they still have a long way to develop digital tools and techniques.

Reference Christopher Heine (2014) Luxury Brands Are Still Casting a Leery Eye Toward Social Media. Available at: http://www.adweek.com/news/technology/luxury-brands-are-still-casting-leery-eye-toward-social-media-161155]

Charlie Thomas (2012) Luxury Brands Must Develop Their Customer Experience To Survive. Available at: http://www.huf�ingtonpost.co.uk/2012/11/20/luxury-brands-must-develop-their-customer-experience-to-survive_n_2165351.html

CBC news (2013) Canadians spent $18.9B online in 2012. Available at: �ile:///Users/apple/Desktop/Digital%20fashion%20marketing/Part%202/Canadians%20spent%20$18.9B%20online%20in%202012,%20StatsCan%20says %20-%20Business%20-%20CBC%20News.webarchive Iris Vermeren (2014) How Can Luxury Brands use Social Media? Available at: http://www.brandwatch.com/2014/04/luxury-and-social-media-are-not-mutually-exclusive/

Tracy Vides (2014) Social Media Trends in the Fashion Industry. Available at: �ile:///Users/apple/Desktop/Digital%20fashion%20marketing/Part%202/Social%20Media%20Trends%20in%20the%20Fashion%20Industry%20by%20@ TracyVides%20%7C%20She%20Owns%20It.webarchive

Weijing Zhu (2013) China’s luxury e-commerce trends. Available at: �ile:///Users/apple/Desktop/Digital%20fashion%20marketing/Part%202/China's%20Luxury%20E-Commerce%20Trend%20%7C%20The%20World%20of %20Chinese.webarchive

Market news (2014) Online distribution of garden products set to double by 2018. Available at: �ile:///Users/apple/Desktop/Digital%20fashion%20marketing/Part%202/Building%20Market%20News:%20Online%20distribution%20of%20garden%20p roducts%20set%20to%20double%20by%202018.webarchive Why don't luxury fashion brands understand digital? (2014) Available at: http://blog.stephengates.com/2014/03/14/dont-luxury-fashion-brands-understand-digital/

WeChat and Line triumphs over Facebook in Asia (2013) Available at: http://www.ihubmedia.com/wechat-and-line-triumphs-over-facebook-in-asia/

42% of Americans Will Mostly Shop Online in 2012 (2012) Available at: �ile:///Users/apple/Desktop/Digital%20fashion%20marketing/Part%202/eCommerce%20Blog%20%7C%20eCommerce%20News%20&%20Tips%20%7C %20Fortune3%20Blog.webarchive