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Writer's pictureyifei huang

The competition of luxury apparel brand in digital market

Updated: Dec 13, 2018

According to the 2016 Luxury Brands Online of PMX Agency’s Trend Report, social media drives 6.3% of website traffic to luxury brands and Luxury brand sites remain mobile-dominant, with over half (52%) of all traffic coming from a smartphone or tablet. Digital marketing is an important marketing trend in the present and in the future. Let’s take a look how luxury brand (Micheal Kors, Burberry, Ralph Lauren, Louis Vuitton, Gucci) compete with each other in digital marketing.


In August 2017, Michael Kors announced a partnership with the Alipay Ant Credit Pay, where Chinese consumers can purchase products in a time-scheduled manner and book a limited number of products in advance; then as the first person in the luxury industry, Micheal Kors joined in the Mini Program of WeChat; in November, Michael Kors announced the cooperation with China's short video app TikTok, and the two parties will jointly conduct a full range of online and offline marketing. In October 2018, Micheal Kors acquired Versace with the intention of bringing it back to the luxury market in the future.



In 2009, Ralph Lauren launched the Make Your Own Rugby iPhone mobile application that allows customers to select blank shirts, polo shirts, sweater or jacket, and customize them with football themed patches and letters. In addition, Ralph Lauren has invested in children’s virtual storytelling by the online video platform which is called "The RL Gang” , and the clothes in the video can be ordered in real-time. What’s more, in order to cater to the millennials in Asia market, Ralph Lauren used a tailored approach that “it works with “Wearistas” in Japan, who uses the fashion app “Wear”, to enable click-through purchases and also works with WeChat in China.” said Ms. Juarez, Ralph Lauren’s senior vice-president of digital commerce international. (Photo source: <Ralph Lauren Launches the iPhone Rugby App>, Chip Chick)


In 2014, Burberry realized a successful digital marketing in Chinese social media network WeChat and Weibo through driving celebrities to share their photos with Burberry Trench coat and writing their own stories, this will largely resonate with customers and form a certain effect.

Photo source: Burberry on WeChat, Pinterest


As one of the top luxury brands, Louis Vuitton always has a good performance in the digital market and it knows well how to build customer-centered service and implement smart online search. In the Chinese market, Louis Vuitton is the first luxury brand that opens the WeChat service. According to the Garner L2 report, Louis Vuitton has the most sophisticated brand zone feature on WeChat. And since the search engine now becomes the single biggest source of traffic for luxury brand, Louis Vuitton has a very keen market insight that it has adapted the investment of SEO and social search strategies for a long time, allowing it to become the first brand of non-specific search of luxury brand on Chinese search engines.

Photo source: App Store


And last year Gucci launched a customizable gift card plan on WeChat.

Gucci's gift card mini program combines two highly shareable features - one is that users can add customized Gucci stickers to their photos through photo editor, and the other is that an electronic gift card for small items, such as perfume, candle and cup. Users can send the gift card directly to their friends via WeChat, and then receive the gifts from the Gucci retail store.


Photo source: Sohu


Cheers,

Yifei Huang



Sources:

<Ralph Lauren – A Brand Capturing The American Spirit> by Martin Roll, July 2018. <https://martinroll.com/resources/articles/strategy/ralph-lauren-a-brand-capturing-the-american-spirit/>

https://www.drapersonline.com/news/ralph-laurens-strategy-for-digital-brand-building/7030101.article

https://www.luxion.com.au/case-studies/gucci-launches-customisable-gift-card-mini-program-for-wechat-followers/

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