Engaging an Affluent Audience: Strategies for Luxury Fashion Brands

In a survey by The Kadence Luxury Index 2018, ’luxury' can be determined by the following aspects: quality, brand history, status, distinctiveness, timelessness, the feel-good factor, exclusivity and the experiential nature of the brand. However, there is no set formula, and brands have to constantly evolve to meet the ever-changing tastes of their consumers.

Furthermore, from Bain and Co’s Luxury Study 2017 Spring Update, it was established that in the next 10 years, Millennials and Generation Z will control 45% of the market. Consequently, luxury brands are having to adapt to new tastes, new trends and the demands of a growing younger audience, and their advertising strategies should reflect this. Whilst luxury brands’ OOH advertising approach should continue to focus on existing consumers; they should actively target its potential consumers by fitting in with their lifestyle. 
 

Luxury Purchase Decision

Today, 40% of luxury purchases are influenced by the consumer's online experience, and it is growing every year.  According to Nielsen, OOH advertising is the best offline medium to drive online activity, being indexed at nearly four times more than the expected level considering its relative ad spend.  Indeed, mobile advertising click-through rates for luxury brands have been proven to increase 15% when they are supported by OOH advertising. This relationship should be exploited by luxury fashion brands, using OOH to target consumers and drive traffic online. 

Brands are increasingly attempting to deliver a seamless brand experience across all media channels reflective of their consumers' evolving path to purchase. OOH's amplification of social advertising is being utilised by many brands, though the luxury fashion market is yet to fully utilise this synergy.
 

More Immersive Experiences to Engage the Consumer

Luxury fashion brands must adapt their advertising to their new audience and relevantly engage with them. However, it is crucial that they maintain the balance between brand exclusivity and sales activation.  Brand exclusivity is vital for luxury brands because it attracts and retains its customers to its scarce and rare qualities.To ensure that brands target both their existing and potential consumers, OOH campaigns are becoming more creative and focused on providing personal and memorable experiences. Since the millennial audience is heavily interested in experience over material things, brands have to incorporate an 'experience' into the branding process. Louis Vuitton's "Time Capsule" exhibition is an example where consumers were immersed and could learn about the brand's history.
 

Advertising in The Right Environment

OOH's reach is near universal, but to reach existing and potential consumers, luxury brands must advertise in suitable affluent locations. Due to its ability to confer prestige on a brand, the airport environment is perfect for this. The airport environment has a luxurious ambience, and 92% of "global shoppers" (the affluent and early adopter audience interested in the luxury category) pay attention to the advertising. 

63% of global shoppers browse in airport fashion stores and nearly a quarter of global shoppers buy fashion at the airport. Therefore, it is vital that brands use this exceptional period of engagement to connect with their existing and potential consumers so that they can convert to purchase. 
  It is clear that consumers' tastes in luxury fashion brands are continually changing and brands must keep pace with the evolution. By using OOH as a media platform, brands can engage with consumers by advertising in the right environment, and ensuring that they provide immersive experiences for their customers. 
 

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