Key findings from the report include:
· Adoption of technology as a competitive advantage – Luxury brands must keep up with evolving technology and refine their products, but without detracting from their unique core product offering and expertise. Industry executives identified reputational risk from social media as one of the highest risks in online marketing and distribution, according to Deloitte’s 2014 Swiss Watch report.
“The luxury sector needs to continue to forge a strong relationship with an ever-increasing array of technologies, as it continues to influence the value chain. The legitimate concern about diluting a brand’s exclusivity in the broadly accessible online world requires brands to move carefully to ensure sustainable, long-term value creation,” said Ballantyne.
· Engaging the millennial shopper – Fifty-eight percent of millennials currently go online to search for information on luxury items and 31 percent use social media for gathering information around discounts and promotions, compared with 10 percent for older luxury consumers. In order to effectively target millennials, (who are already emerging as leaders in technology and other industries and are expected to comprise 75 percent of the global workforce by 2025) luxury brands can benefit by fully understanding their buying habits and influencers.
“As the younger generation of luxury consumers the Middle East is becoming increasingly digitally-savvy and socially aware, the consumer and luxury industry will need to understand the changing desires and buying behaviors of its luxury consumers and Rajeev Lalwani, consulting partner, and technology advisory services leader at Deloitte Middle believes that use of data analytics in the collection of information on the customers’ shopping habits will become more prevalent by retail outlets in order to tailor their customers’ in-store and online experiences.”
