The luxury goods market has witnessed rapid changes in the last decade or so. Previously, these items were only accessible at exclusive stores in select locations, but the focus has now shifted to accommodate the ever-changing needs of luxury consumers.
While new channels and tools were being adopted by luxury brands much before the COVID-19 crisis, there are several other factors that have changed the consumer landscape now. For a large majority of customers, the crisis has affected not incomes and financial stability but has also altered shopping patterns and consumer behaviors.
Here are the top 3 consumer trends that have emerged during COVID-19:
1. Consumers are more mindful about their spending
Global surveys from McKinsey suggest that consumers across the globe have witnessed a decline in savings and incomes. Earlier in May, 52% of Italians, 42% of British, 38% of Americans, and 45% of Korean respondents in the survey reported that their incomes had fallen due to the COVID-19 pandemic.
Brands must also keep in consumer expectations for the future. In most countries, a majority of respondents had a pessimistic outcome about the future. Many consumers believe that financial recovery will take time and thus are being more careful with their spending and opting for less expensive products.
2. Consumers are going digital
Although the market has seen tremendous growth in online sales over the last few years, the shift towards online retail has accelerated during COVID-19. Essentials and home-entertainment categories have witnessed a 35% increase, and even discretionary categories such as makeup, jewelry, and apparel have witnessed a growth of more than 15%.
In countries such as China, where consumers already have a high affinity for online shopping, the number of online transactions hasn’t gone up too much. However, the overall order values have gone up markedly.
3. A new desire for ownership
For many years, the luxury market has been all about creating extensive shopping experiences that are spread across multiple channels and social media platforms. However, the Millennial generation has redefined what they want from luxury brands. They want to feel an ownership of the products and the brand.
Luxury brands then have to look for unique ways to personalize the shopping experience for their audiences. This can come from personalization options, limited edition items, customizations, and routinely engaging with audiences on different outlets.
3D product configuration is one technique that can help you build a closer connection with audiences. By letting consumers customize products and visualize them in real-time, they feel a sense of ownership because they contributed to the design. Additionally, a personalized product is much more share-worthy, helping the brand build engagement with users.
If you’re looking to excite your customers with a top-notch 3D Visual Product Configurator, get in touch with the experts at Elementals Studio. We can help you build a stunning and immersive website with our product configuration expertise.
Contact us now for more information.