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This article was sponsored by Google.
A human-first approach to innovation in the luxury sector is needed. Data and insights show that consumer mindsets and behaviours are shifting, particularly as ethical and environmental issues are front-of-mind.
As a response, Vogue Business, in association with Google, has created a white paper, titled CUBE: Fashion Takes Shape.
The research offers timely recommendations and solutions for connecting with customers. Featuring deep dive interviews with luxury consumers across the UK, US, Middle East (UAE and KSA), France and Italy, the aim of the study was to explore key shifts in consumer behaviour that are core to future innovation in the luxury industry. We asked luxury consumers about how brands should approach emotional relevance, omnichannel customer experience and Web3 exploration. The answers were then analysed and cross-referenced with Google search interest and consumer survey data from the Vogue Business Index.
In addition, we asked industry experts for their input across these subjects, including Olivier Bialobos, chief communications and image officer at Christian Dior; Francesca Ragazzi, editorial director of Vogue Italia; Virginia Rustique-Petteni, VP of global purpose communications at Nike; Bertrand Peyrat, chief commercial officer at Vestiaire Collective; Thomas Berry, senior director of sustainable business at Farfetch; and Jasmina Banda, chief strategy officer at Chalhoub Group.
As the whitepaper identifies, human-first strategies are about localisation. China’s zero-tolerance policy on Covid suggests the threat of disruption to retail there is ongoing. This means brands and retailers must re-route their focus by getting to know local customers again within the US, EU and UK, as well as understudied regions, such as the Middle East. Technology and social media strategies need to be personalised to meet audiences across different regions.
“We can’t assume that just because something is popular in China that it will become popular in the same way in the West,” says Maghan McDowell, senior innovation editor at Vogue Business. McDowell also sees the luxury industry facing a cultural shift, comparable to when bloggers and social media came to the fore. “In the next phase of the internet, even more transparency and back-and-forth dialogue are valued, which for most marks an almost insurmountable challenge.”
Consumers in the US, EU and the Middle East are having to create technology hacks so that they do social commerce the way they need it. Cultural differences and varying influencer ecosystem legacies mean new localised strategies are needed.
The white paper accompanies a luxury fashion event hosted in Milan by Google, attended by 100+ industry executives, with a series of talks and panels broadcast globally to an audience of 500 industry professionals.
The CUBE offers a model for how brands should approach innovation. It is made up of four parts, with each chapter of the research being a section of the journey which sees us navigate the CUBE.
Create character
This opening section offers key insights on how brands and retailers can connect with consumers. This is about brands and retailers building depth of character via deeper values, so they can be human-first rather than just consumer-first. The parallel lines within the cube illustrate the importance of value-mirroring and relatability.
Unlock ultramatums
Consumers are becoming ultra-committed to pursuing positive changes in their lives to help people and planet, and making ultimatums when choosing brands that share their values. In order to secure purchases, brands need to help consumers put these positive ‘ultramatums’ into action. Brands and retailers need to help consumers navigate these corners of the CUBE, so as to secure future purchases.
Build bridges
Responding to cultural shifts, planetary needs and technological innovation, mean brands need to engage with omnichannel experiences that facilitate self-expression, connection and exploration within Web2 and Web3. This part of the journey sees us traverse and cross the horizontal lines within the CUBE.
Embrace extr(a)ordinary
Peer-to-peer community and relatable content is where trust and influence is native. This is where brands and retailers can venture off-grid with communities to explore physical and virtual worlds. Here the CUBE becomes 3D.
Correction: This article has been updated to correct the spelling of Olivier Bialobos in the fourth paragraph. (4/11/2022)
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