Bain & Company discovered the luxury market took a 20% hit globally during the pandemic, shrinking to where it was in 2015 (circa €1trillion).

But with the market recovering, we look at how digital is driving growth for luxury brands and how marketers can make the most of the opportunity.

The growing online opportunity.

Where in 2019 online purchases had a 12% overall share, that accelerated to 23% in the following year. As consumers become more accustomed to purchasing luxury goods online, marketers have a great opportunity.

Shopping in the luxury market is often an emotive purchase based on aspirations. Brands in this space differentiate their brand identity by using a rich heritage or captivating stories. It’s no wonder that the limelight for marketing is on big brand campaigns featuring high-profile sponsorships, events, and celebrity endorsement.

But as purchases are increasingly taking place online, brands need to evolve their marketing to capture the ‘in the moment’ intent of today’s luxury consumer. Online was the fastest-growing channel, increasing by 50% and nearly doubling its share to reach 23% of luxury sales globally (up from 12% in 2019). Online sales made up €49 billion in 2020, up from €33 billion in 2019 (Bain & Company).

While we are a performance-focused agency, we understand the importance of the brand activity mentioned above, the harmony of brand and performance, the long and the short. But too often, the role of performance marketing is neglected in the luxury market.

Want to find out more on how you can utilise digital strategy to amplify your luxury brand? Check out our full article: www.crafted.co.uk/labs/luxury-marketing/