Luxury Daily surveyed 599 luxury industry decision-makers, including senior brand, retail and agency executives, for its report, State of Luxury 2018: The Insider View.
This found that 68% of luxury goods brands were selling products online, up from 62% in 2016
And that shift was supported by marketing efforts as social media advertising and promotion has become the channel where the largest number of luxury goods and services brands are investing their budgets in 2018, followed by website improvements and the use of tools such as Google AdWords for search advertising.
“The digital revolution continues to disrupt business as usual for luxury brands,” said Mickey Alam Khan, editor in chief of Luxury Daily, New York.
“This year, however, the survey shows more luxury companies have embraced the potential that internet marketing and e-commerce represent.”
Digital’s gain is print’s loss, however, as the survey results also revealed that only about half as many brands intended to allocate advertising budgets to print this year compared to social media.
“The search is on for the next generation of luxury consumers and, increasingly, luxury brands realize that they must trawl the internet to find them,” said Pamela Danziger, president of Unity Marketing and lead researcher in the study.
Another finding was that while respondents saw the past year as a challenging one, they were more optimistic about 2018. And 58% planned on investing more in advertising and marketing – a marked improvement over the previous year, Luxury Daily noted.
“This is a bellwether of strength in the luxury industry, as brands pick up the pace to attract new customers and communicate their branding messages through media that is most relevant to them,” said Danziger.
“The insiders surveyed believe they have strategies in place to respond to the shifts in the market that will enable them to overcome the headwinds they faced over the last few years,” she added.
Sourced from Luxury Daily; additional content by WARC staff