The rapid development of digital marketing in the past decade has significantly changed the way people interact with brands and has also dramatically altered consumer purchasing habits. The exponential growth of social media has led brands to turn to social media dominance with celebrity ambassadors. These factors allow brands to effortlessly leverage the large online audience and star power of celebrities associated with the brand, thereby driving brand awareness and revenue growth.
A strong social media presence allows brands to analyze engagement and gather detailed customer data about purchasing habits. This information is valuable to brands looking to appeal to the interests and desires of their most trusted consumer base. However, some brands remain committed to traditional marketing methods to express certain aspects of their brand identity.
It would be unrealistic to deny that establishing a social media presence can be extremely effective in building brand awareness and reaching a wide audience. However, with today's rapidly changing social media culture, brands may feel pressured to publish as much content as possible to grab consumer attention among other digital content. With so much pressure to stay current in a competitive digital space, brands' content can become stale and lose consumer interest.
Moreover, creating such a significant image on social media can be high risk due to unpredictable factors that may expose your brand to further criticism and bad publicity. Conversely, those who do not follow this norm can create a sense of mystique that draws in consumers, leading them to actively research your product and create independent content to satisfy their own and others' curiosity, creating a word-of-mouth effect.
Read more: Dior to exhibit fashion show at Paris 2024 Olympics
The credibility of word-of-mouth creates credibility for the brand
Word of mouth works wonders for brands like Goyard, which chooses not to advertise at all, Loro Piana, which employs traditional marketing methods, and Bottega Veneta, which has no social media presence, all of which rely on the authenticity of their brand identities that boast rich heritage, traditional craftsmanship, and high-quality materials to generate revenue.
Until now, the growth of these brands has relied on word-of-mouth through personal recommendations from loyal customers. Every individual has influence within their own circle, so a referral from an existing satisfied customer gives a brand great credibility and authenticity. This is because word-of-mouth is less biased and more trustworthy than brand advertising.
However, as seen in the last few years, it is worth noting that social media influencers and trends have driven the rapid growth of Goyard and Loro Piana. More specifically, the popular trend of large tote bags and quiet luxury items accelerated sales despite the high price. Bottega Veneta adopted a “no marketing” marketing approach only in 2021 with the intention of relying on the word-of-mouth effect of loyal customers and ambassadors. The brand was already established, very popular and profitable, but the products were ever-present on social media while the brand's digital content disappeared from everyone's feeds. The decision was therefore effective in increasing exclusivity while being effective in maintaining visibility and good sales. Despite these success stories where brands chose to have a lower social media presence, it can be argued that it is unreasonable to deny the huge potential of social media marketing for these brands that have proven to be successful among social media users.
Lack of digital marketing creates exclusivity and demand
The use of traditional marketing and limited engagement with digital platforms builds a quality over quantity ethos, implying authenticity for the brand by letting the products speak for themselves, reinforcing the brand’s reputation and identity. Brands like The Row by the Olsens and Berluti have done this to their advantage, with The Row banning social media and having a low runway show and digital presence. Given that digital media is such a go-to for most brands, pivoting away from this norm creates an aura of buzz and exclusivity and is perceived as not marketing to a mass market. Thus, this not only signals the brand’s focus on quiet luxury, but also demonstrates a demographic that values subtlety over flashiness, allowing the skilled craftsmanship to do all the marketing.
Read more: Home advantage for France
Despite the convenience of e-commerce, the in-store experience remains a priority
The digital environment is not just about spreading brand awareness and collecting consumer statistics; it is also influencing the spread of e-commerce. Efforts to build a digital presence serve the primary purpose of generating sales and revenue. Therefore, brands appeal to convenience by offering in-app purchases and user-friendly online stores. Renowned fashion houses such as Prada, Burberry, and Dior were the first luxury brands to leverage Instagram's in-app shopping feature, which aims to provide consumers with a seamless and hassle-free shopping experience.
The process is quite simple and straightforward. The product worn in the image is linked to a shopping tab, which when clicked will take you to a shopping page where customers can easily check out with just a few clicks of a button. The advantage of shopping on e-commerce is that it is highly accessible and appeals to a digital audience that is mainly made up of Gen Z and Millennials. Marketing your e-commerce sales to this age group is a good fit, as the largest proportion of luxury buyers are 25-34 years old at 27%, followed by 35-44 years old at 24%. Gen Z and Millennials are most present on digital platforms due to their love of trends and pop culture influences. However, potential consumers are compelled and attracted to buy what they see online, but that doesn't translate into buying online.
Despite the convenience of e-commerce shopping, online sales only account for 20.8% of retail sales, according to a 3DLOOK report. Furthermore, this channel may only be viable for existing customers or a few individuals with enough resources to make a large purchase without the need for further evaluation. The majority of consumers approach luxury fashion cautiously due to its price, and often need to research further or evaluate in person to proceed with a purchase. Therefore, while tweaking the e-commerce experience to make it more convenient to execute is beneficial and increases accessibility, this action does not address the needs of the majority.
The importance of prioritizing analog experiences
On the other hand, some brands are prioritizing the importance of analog shopping to improve the consumer experience. Brands such as Hermes, Chanel, and Goyard do not offer e-commerce shopping and can only be purchased through indirect channels such as vintage and second-hand sites. The overall idea of strategically prioritizing in-person shopping is to focus on different aspects that improve the customer experience. The aforementioned brands continue to reign at the top of their industries, each boasting some of the most coveted and desirable items in the fashion world, but the demand is great and the supply is low. The decision to focus on enhancing personalized customer service allows individuals to enjoy the exclusivity and luxury that comes with prominent brands. In addition to making customers feel valued, the in-store experience is likely to increase purchase volume as the entire product can be seen at a glance and customers can touch and feel each product. These attractive elements and personalized shopping experiences create a strong brand identity, which leads to a loyal customer base and word-of-mouth effects.
Read more: The Importance of a Jewelry House's Signature Mechanism
Considering the various aspects of digital marketing in the fashion industry, the success of having or not having a digital media presence depends heavily on the brand's identity. Brands that intentionally lack a digital presence effectively create an aura of exclusivity, enhancing their brand image and generating increased demand by not marketing to the mass market. The decision to sell on skilled craftsmanship and visual appeal generates a strong and loyal consumer base through word-of-mouth effects, but this approach can limit the growth of the brand. Especially nowadays, social media is the most powerful marketing tool for luxury fashion, allowing a deeper understanding of the consumer base and is very effective in generating brand awareness and sales. It would therefore be unreasonable to ignore the huge potential of social media marketing.
For more of the latest fashion news and releases, click here.
