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When it came to the retail market, the industry took a hit, just like many other industries during COVID-19. In regards to luxury retail, the market has returned to it’s pre-pandemic state. However, that doesn’t mean that businesses can relax and continue as they did before the pandemic.

Marketing for the luxury retail sector is still needed and more so with customers who’ll expect more from the brands they shop with. With that in mind, this guide will look at the predictions on consumer behaviour for 2022, as well as vital luxury retail marketing trends to implement this year.

Predictions of consumer behaviour for 2022

Consumer behaviour is certainly shifting as we enter 2022. There are certainly some predictions to be made about how this will change over the year and beyond.

For example, many consumers are seeing the world as all-digital, rather than there being any sort of divide. This has likely been influenced more due to COVID-19 and the limitations that have been put in place. 49% of UK online adults started making online transactions for the first time and 35% of UK consumers upgraded their in-home technology.

The future of luxury retail is like other industries, they rely on user experience and the behaviour of consumers. Post-pandemic consumers are more in tune with their values and morals when it comes to shopping with new brands too. That means being more conscious of what your users are passionate about and how you can align the brand’s morals and values with theirs.

It’s also been found that users online have been making use of social media to influence their purchasing decisions since the pandemic. eMarketer found up to 51% of adults were using social media platforms during the pandemic at higher rates than before.

7 Vital luxury retail marketing trends

What are some key trends in luxury retail today? There are some great marketing trends being used in the luxury retail sector right now that can benefit any business looking to make improvements.

From building customer relationships to brand storytelling, here are some of the luxury fashion trends for 2022.

1. Using sales and brand ambassadors to build trust and reliability.

Sales and brand ambassadors are proven to be a great way of connecting with users and building trust in the products that are being sold. If you’re using the right influencers or offering the right ambassador programme, then you’re more likely to see positive results.

In millennial shopping trends, many users find they’re influenced by who they follow when it comes to making purchasing decisions. Not all ambassadors need to be influencers either, they could be your every day, average person.

Consider implementing a sales or brand ambassador program in order to attract loyal customers or those with influence over others.

2. Increasing demand for personalisation.

Consumers want more personalised experiences when it comes to the brands they buy from. It’s not just about the transaction anymore for brands but a focus on providing an experience that’s tailored to the individual.

As a luxury brand, this expectation is heightened because many consumers, whether they’re new or regular, will be expecting a certain level of premium service. So offer that world-class service where possible. It’ll help maintain your regular customers and it’ll also leave a lasting first impression on new customers too.

3. Sustainability is a need that consumers are looking for.

When you’re conscious about the environment, you’re more than likely to impress a wider audience. 67% of consumers consider the use of sustainable materials to be an important purchasing factor. The same study found 63% also considered a brand’s promotion of sustainability in the same way.

With that being said, look at how you can be sustainable as a luxury brand. Even luxury retail brands can have an impact on the environment and when they’re considered to be more financially flush, consumers will expect you to be making an active effort to be sustainable.

This comes as a reaction to the fast-fashion industry and more consumers looking to shop with brands that are more sustainable in their production and distribution.

4. Authentic storytelling and a brand story is key.

Brand stories are a great way to connect with your audience because everyone loves a bit of history to the brand and how the brand came about.

When it comes to telling a story, whether that be the brand’s story or via social media platforms, authenticity is key. Consumers can easily see through lies both online and offline, so it’s critical that every tweet, story and email is honest and truthful.

Building trust is important to securing regular customers and to converting leads, especially as a luxury brand. When you’re authentic in your marketing, you’re more likely to convince your audience that you’re the best luxury retailer for what they’re after.

5. The rise of ‘phygital’ stores

The rise of the ‘phygital’ store is apparent, especially due to the pandemic. Whilst physical stores remain a crucial feature for many brands, including luxury retailers, online shopping is not going away.

The use of experiential retail is expanding with in-store experiences that go beyond just displaying a product. The same can be said for online shopping where you have social media platforms providing the capabilities to purchase via the platforms.

Augmented and virtual reality are also seeping into both the physical and digital domains, offering an immersive and interactive experience.

6. Video advertisements are highly engageable

Video content has become a popular form of content that many enjoy watching, especially when it comes to short videos. Tiktok has proven the need for short-form videos and many other social media platforms have followed suit.

Video advertisements are highly engageable
Image Source: Youtube.com

Video advertisements are a great way to showcase the luxury products being sold and to keep your audience engaged for longer when it comes to content.

7. Use of chatbots for 24/7 interactions

Consumers don’t adhere to the working hours of your sales agents, so make sure you’ve got chatbots in place. These can provide 24/7 interactions, even if they’re limited in what information they can provide.

By keeping up with these marketing trends, it can help sustain the success of a brand. The future of luxury retail is forever changing, so don’t get lost in the outdated ways of promoting to your customers, else you might lose them.

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