The 5 Biggest Luxury Marketing Trends of 2024, Predicted
Every year, new marketing trends emerge that present unique ways for luxury brands to grow their customer base, engage with their existing customers, and find innovative ways to sell their products.
With the new year right around the corner, it’s time to prepare for the trends that will influence the luxury retail space in 2024. So, what will be the biggest digital marketing trends in the coming year? Get your notes at the ready, because if you want to hit all your KPIs for next year, you’ll need to incorporate these five biggest trends into your brand’s digital marketing strategy for 2024.
2024 Biggest Luxury Marketing Trends
1. EXPERIENTIAL MARKETING
Experiential marketing and the digitization of stores have risen steadily over the last couple of years and, in 2024, will be more significant than ever.
Experiential marketing is essentially the creation of a better, more engaging brand experience for your customers. Rather than having your customers passively receive your brand’s marketing message, it prioritizes a more holistic experience in which the customer actively engages with the brand, for a more memorable, lasting impression.
“As many as 85% of consumers say they’re more likely to purchase from a brand after participating in experiential marketing events. ”
This can be done through a range of innovative technologies that blend the physical and digital retail experience in a phenomenon known as phygital retail. Examples of this trend include the use of virtual or augmented reality (AR), QR codes, or other modern marketing initiatives like live shopping events.
Experiential marketing is especially important for luxury brands looking to build stronger, more loyal customer relationships. Over 80% of event marketers agree that experiential marketing helps to achieve deeper and longer-lasting connections with customers, while also helping to drive sales. As many as 85% of consumers say they’re more likely to purchase from a brand after participating in experiential marketing events.
2. PERSONALIZATION
In 2024, it’s getting personal. Again, personalization isn’t necessarily a new trend, but it’s becoming increasingly more popular amongst luxury brands.
Personalization can come in various forms, the most common of which is the customization of physical products with names and initials through engraving or monogramming. Louis Vuitton has gone down this route with its 'Mon Monogram' service that lets customers add their initials to bags or choose a specific stripe pattern.
Thinking beyond physical products, brands can also get personal with the way they interact with customers. Rather than creating one-size-fits-all ad campaigns, luxury brands can tailor Google and social media ads to very specific customer segments, in a way that feels uniquely crafted just for them.
Personalized product recommendations are another way to provide customers with a tailored experience. Using browsing history, purchasing history, as well as the activity of similar customers, luxury brands can suggest specific products to customers who are more likely to enjoy them.
3. SOCIAL COMMERCE
Social commerce is an innovative way to shop online. It’s similar to e-commerce, except that the shopping is done through social media.
While the ability to make purchases through apps like Instagram and Facebook has been around for a few years, live shopping—selling through livestream events—really took off in this past year. And it’s by no means slowing down. More and more consumers are conducting their shopping through social media, with 82% of consumers having discovered a product through social media and purchased it directly on their phone.
“82% of consumers have discovered a product through social media and purchased it directly on their phone. ”
Social commerce is a particularly good way to target the luxury industry’s biggest market, millennials and Gen Zers. Gen Z are actually anticipating even more social media usage next year, with 41% of the demographic believing they’ll use more social media networks in 2024. Millennials value social media the highest out of all the demographic groups, with 72% stating that it’s an essential part of their lives.
Burberry is one luxury brand that’s leaning into social commerce and reaping the rewards. They’ve partnered with big social media apps like TikTok and Snapchat to create more immersive experiences for their customers, including AR filters and shoppable ads. This allows them to virtually try on Burberry’s products, then, if convinced, to make a direct purchase via the social media platform.
4. BUY NOW, PAY LATER
Buy Now, Pay Later services—including Klarna, Afterpay, QuadPay, and Affirm—have become more popular among consumers. It allows them to spread the cost of their more expensive purchases over a few weeks or months, rather than paying upfront.
This is good news for luxury brands, as it makes high-ticket items more accessible to a wider range of customers. During periods of economic uncertainty, like the cost of living crisis, it can allow luxury shoppers to continue to shop with their favorite brands with more peace of mind.
So, if you’re not already utilizing this feature on your websites, 2024 is the year to start. You could even consider offering it in stores too.
5. RETARGETED MARKETING
Retargeting is a type of paid ad or email marketing that specifically targets people who have previously visited your brand’s website or app.
It’s a cost-effective form of marketing, because these customers are already familiar with your brand, have been researching your products, and are therefore already part of the way along the customer funnel. This means that when they come across your ads, they’ll be more likely to make a purchase.
Retargeting is an essential part of a luxury brand’s marketing strategy, where the customers tend to be more loyal, and returning customers make up a larger proportion of their customer base.
Your Luxury Marketing Partner for 2024
Working these five trends into your luxury brand’s marketing plan will help to shape your success for 2024. Whether you want to focus on just one or incorporate all five, Block & Tam can help you to stay at the forefront of these growing marketing trends.
To get started, reach out to our specialist luxury marketing team today.
