Luxury retailers have set themselves apart from their competitors within the industry. They have done this because they are known for having a fantastic product with all the ‘bells and whistles. Overall, luxury Retailers on Social Media have made it their own as have every other market. Social media has thus impacted luxury marketing as social media has impacted brands of other industries and quality levels. Therefore, luxury brands have the same advantages and disadvantages as other brands when they utilize social media. In conclusion, luxury customers have the same advantages and disadvantages as other customers regardless of the type of product.
Advantages of Social Media to Luxury Retailers & their Brand
- No longer are they limited to a specific geographical location for sale, delivery, and promotion. Being on social media platforms and online local (and global) search forums has increased their profit as they can advertise to different people. For instance, a brand can market to people that they never were able to before.
- Brands can save on logistics, employee hours, and complications by utilizing social media for marketing, reporting, e-commerce payments, and so on.
- Providing promotions, sales and discounts in a way that furthers their financial benefit as well as their reputation as a luxury brand such as ‘secret sales’.
- Social media, if used correctly, provides the opportunity to be “exclusive and accessible” (Laudon & Traver, 2017).
- Customers can shop around to find the best price, best quality, best delivery, best value of whatever product they are looking for throughout the entire internet. Adding a customer’s research is the already established recommendation and reviews systems through Yelp, Google, Facebook, and so many more.
Disadvantages of Social Media to Luxury Retailers & their Brand
- Luxury items combined with the internet have caused an interesting increase in the number of knock-off brands.
- Translating their brands, and the look and feel of luxury shops, into websites, can be very difficult as it takes away from the rarity of it. It is easy to compare to other things on the internet that are presented the same way but having a lower price.
- Social media has taken the world by storm, as you all know. However, it is well known that there is a disconnect between reality and what is posted online. This illusion can help luxury brands by building up excitement about their products. This can backfire on the poster if they are misrepresenting themselves and it looks bad on the brand’s reputation.
- Consequently, t can be difficult to see exactly what is being purchased. Without being in person, a customer relies on their best attempt at perceiving what the seller is showing. As a result, their idea of the product isn’t always what they think it will be or should be. If there is a disconnect between the product and the perception, it is something as simple as a miscommunication to a misrepresentation.
Luxurious Parody songs of Macklemore’s “Thrift Shop”
With all of these in mind, get ready for some music in this section. Let us take a look at the lighter (possibly more comical) look at luxury brands. Prepared to laugh in luxury with the following parodies of Macklemore’s “Thrift Shop”.!
“Insight on Business: Are the Very Rich Different from You and Me?” (Laudon & Traver, Chapter 6, pp. 372−373)
Hooley G., Nicoulaud B., Piercy N., & Rudd J. (2017). Marketing Strategy and Competitive Positioning ePub. [VitalSource Bookshelf]. Retrieved from https://online.vitalsource.com/#/books/9781292171456/