The luxury network: How social media lure is still compelling enough for any brand

Affluent consumers continue to lose trust in social media, with one in five affluent consumers discouraging peers from using platforms like Facebook, proclaims the Luxury Institute’s 2018 Index.

Luxury brands and their esteemed clientele primarily thrive on personalisation, customisation and exclusivity that “premium’’ entails. So is social media, perceived as a  mass market channel, not pivotal for luxe brands? “Not really”, claim experts.

Madhuri Bajaj, co-founder of Dua Vivo, a platform that connects buyers and sellers of pre-owned luxury, says there might be a set of consumers who could be losing touch with social media due to the privacy crisis that platforms like Facebook have been facing. “And there are other consumers who may be taking a break as they generally end up spending way too much time on such platforms.” But by and large, the social media lure is compelling enough for any brand.

“Luxury brands have adopted tactful social media marketing strategies to garner optimal impact. Brands such as Chanel, Louis Vuitton and Gucci have created a massive social presence with over 100 million followers combined on Instagram alone. Luxe brands have been steadfastly cautious in their social media approach to maintain their aura of exclusivity,” says Arvind Jain, CEO, NetBiz, a digital performance driven agency.

Brands believe that social media has become the focal point of all activity today and the premium category cannot afford to overlook the medium. As per industry estimates, the value of the global luxury industry was €212 billion, while the online global luxury market was €23.5 billion last year. “Moreover, about 40% of all luxury goods purchase decisions are influenced by what consumers see online. This is a clear indicator that the social media influence is a major driver of growth for luxury brands,’’ says Jain.

Shishir Mehta, founder of niche luxury perfumery Scentido, says, “In India, a luxury brand’s social media presence in unavoidable when the consumer is ‘’always on’’ and looking for inspiration across multiple platforms. The focus, however, should be on genuinely engaging with consumers, rather than merely having a social media presence.’’

Mehta feels one of the prime reasons customers follow social media accounts of luxury brands is because “they want to see what is really behind the products, what is worth their attention and their money.”

Experts say social media helps in churning out an introductory story about brands.

But in the premium space, brands have an added responsibility to create an “experience’’ for those who engage and buy into them and the social media strategies they employ need to be effective enough to do that, explains Mehta.

Experts believe affluent consumers are astute at picking out insincerity on social media. “Poor social media etiquette can be harmful as it devalues the brand. Interrupting people’s feed with pointless marketing is extremely detrimental to the brand equity,” says Mehta. 

Experts say with fake products getting listed on social platforms, affluent consumers are wary of interacting with brands through this medium since transparency and authenticity are a concern in the online world. “Even though social media might give consumers the first feel of the product, when it comes to ultimately making a purchase decision, they still visit the high-end stores, interact with the brand representatives and only then make their ultimate buying decision. Luxury is not merely a purchase, but an investment,’’ say experts.

Looking beyond the realm of social media, premium brands can gain a lot by engaging first-hand with their distinct customers though high-end exhibitions and pop-ups, feels Bajaj, “as this gives the brand and the customer a channel to interact directly, thereby building trust and confidence.”

Jain says for luxe brands, the trend of exclusivity will never dim and hence they should look increasingly at experiential marketing to give customers a shopping experience that will be as memorable as the actual purchase itself. For example, the Wadhwa Group conducted an event aboard a yacht with members of the yacht club to promote their premium luxury project in Mumbai. “Such exclusive experiences can work well with the niche target customers.”

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• 23.5 bn – Online global luxury market last year
   
• 40% – Of all luxury goods purchase decisions are influenced by what consumers see online