If we talk about the luxury industry before the pandemic, we can say that they were doing great. A major group domited the luxury market, LVMH Group, marking his seventh year in the first place. However, everything changed last year. These companies have changed their strategy adapting themselves to a different behavior of customers. How are the big Fashion Houses doing?
The Covid-19 has affected big fashion brands due to the closure of stores, the collapse of tourism and closed cities. Even so, there are markets that were an exception, such as the Chinese market, but these Luxury brands had to changed the way to approach their customers.
The main marketing chanel for High End Brands used to be fashion shows, large events and showrooms. However, nowadays, they had to adopt other ways of communicating and selling. Technologies such as artificial intelligence and augmented reality have been essential. However, we believe, that physical stores and face-to-face events are still crucial for the shopping experience since luxury is very close to “the senses” and therefore the physical experience is crucial.
Sustainability is also a plus this year and it becomes very important in the nearest future. Consumer expectations are on the rise and fashion brands must be able to fullfil them.
Our answer to the question on this new post: How are the big fashion houses doing?… “They are doing fine but still learning about the Covid19-Era customer behavior”.