Luxury goods have traditionally been categorised as being exclusive, designed with exceptional craftsmanship, and being delivered to customers through carefully curated personalised experiences by professionals that cater to their every wish. Luxury experiences were traditionally reserved for the upper echelons of society that could afford to pay the high price tag and were a sign of material wealth and elevated social status.
The arrival of the digital age has redefined the concept of luxury, transforming it from being a solely physical concept into a virtual one.Traditional luxury brands now realise that in order to appeal to the younger generation, they need adapt their marketing strategies to embrace technology and offer digital experiences in addition to their traditional offerings. Gucci for example now offers virtual experiences and created “The Gucci Garden” a shopping experience with virtual items that are identical to their real physical products.
Digital marketing companies like Bounce Media can harness this shift in perception by using media marketing strategies that create emotional and personalised experiences which also emphasise the value of sustainability to meet the modern day expectations of a digitally connected base of customers. Recent research has shown that over 92% of luxury item purchases whether physical or virtual are often initiated through interaction on social media platforms and influencers, therefore it is critical to design campaigns that will help to connect with customers on a personal level to increase and enhance user engagement.
Online Entertainment Has Made Luxury Digital Escapes Accessible To A Wider Audience
Humans are naturally attracted to power and glamour and even before the internet there was a fascination with celebrities and other famous people. Online entertainment has now gone mainstream which has made celebrities much more visible and also makes it easier for fans to connect with them. The average person spends around five hours a day on various apps and platforms and online entertainment is one of the most popular leisure activities. Easy accessibility through mobile devices and OTT services mean that users can access their favourite digital pastimes when it fits into their busy schedules such as watching films, participating in live streamed events, playing games, and shopping.
Digital Platforms Now Are More Focused On Offering Luxury Experiences
Before the digital revolution, luxury items and experiences were reserved for the rich and famous and the glitz and glamour of establishments such as bricks and mortar casinos was a thrilling concept but unattainable for the majority of the population. The internet has broken down these barriers and offers anyone the opportunity to enjoy luxury from the comfort of their home or their smartphone which has opened up a whole new world of experiences that are very economical. Digital platforms offer cutting edge technology and is the portal that is accessed to stay up to date with the latest trends as well as connecting with favourite influencers and celebrities through different social media channels such as TikTok and YouTube.
A luxury digital experience is something that creates a combination of beautiful and rare ingredients that appeal to human senses in a manner that triggers specific creative thoughts and impacts them intellectually, emotionally, or physically.
There are many brands that are now investing in virtual events and experiences due to the change in consumer behaviour. Offering easy access to live streamed virtual experiences is a cost effective way to host global events that can reach large audiences, many of whom may not have otherwise been able to attend due to factors such as travel and time restrictions, different time zones, or limited availability that is often the case in physical events. There are many companies that offer virtual visits through the use of VR which means that attendees can attend concerts , take a test drive in a luxury car, or take a tour of their dream home without leaving the comfort of their sofa.
Virtual shopping has become particularly popular and the luxury brand market has designed experiences where clients can engage in virtual visits to the boutique with the same level of service that they would experience in a physical visit to a bricks and mortar store. With the assistance of a personal assistant, they can try on the clothing and accessories that they are interested in through a VR headset. These experiences alleviate the hassle associated with having to physically be present in a particular location.
Clothes shopping even gives customers the opportunity to see how the outfit looks on them without even raising a finger and avoiding the hassle of changing in and out of clothes and trying to find the right size but at the same time these experiences have a virtual host that ensures that each client enjoys an experience that is personalised and resonates with their needs and desires.
Interactive experiences that are delivered in real time through HD streaming such as fashion shows, concerts, sports matches, online casinos, online forums, and endless other events are not only replacing physical experiences, they are enhancing them and creating deeply immersive experiences that help to increase customer engagement, generate additional revenue, and encourage brand loyalty by creating an emotional connection between the brand and the user.
How Digital Indulgence Now Denotes Status
Luxury used to be associated with material possessions. In today’s hyper connected universe the digital choices that are made especially among younger consumers now are used to denote an individual’s social status. Digital luxury is based around what digital ecosystems an individual frequents and also experiences as opposed to material possessions. Millennials and Gen Z consider personalised online personas to be more important than tangible luxury items.
By offering digital access and exclusive content to a niche group of customers, social media and streaming services have made these experiences into status symbols by making them accessible to a select few. The same principle applies to premium digital experiences such as subscriptions to ad free streaming services such as YouTube Premium, OnlyFan VIP tiers, Patreon, or top end gaming memberships where users get exclusive early beta access or NFT integrated experiences which creates an elitist attitude where they enjoy the luxury of being able to access exclusive digital assets that are not available to everyone.
Other luxury status symbols include investing in the latest technology such as the latest Apple smartphones, Tesla FSD, or the newest AR and VR technology which sends the message to others that an individual is privileged and can afford the latest in cutting edge technology. Indulgence in digital events is another way to elevate social status by spending significant sums of money on virtual events such as masterclasses, online concerts, esports tournaments, or engaging in luxury gamified experiences such as Fortnite.
The Importance of Rethinking Engagement Strategies Around Experiential Content
Being constantly connected to the digital universe has increased digital fatigue, especially since the end of the Covid-19 pandemic. There is so much information available that has made the digital ecosystem become over saturated. If businesses wish to succeed in a very highly competitive market they will need to take a step back and rethink how they can create engagement strategies around experiential content. The average person is bombarded by thousands of ads when they visit digital and traditional platforms. Now as many as 80% of all online users actively ignore these ads by consciously or sub consciously filtering out or even completely ignoring the onslaught of ads that appear when they navigate online throughout the day.
This bounty of ads has also created mistrust and many individuals use ad blockers. By using experiential marketing, businesses can appeal to users by offering personalised, unique, immersive experiences that resonate with consumers in a manner that is meaningful and memorable. Research has shown that inviting individuals to participate in an experiential market event has resulted in around 85% of consumers being more inclined to purchase a product. These days consumers do not want to be passive observers, they are more inclined to choose brands that offer them the opportunity to be active participants throughout the entire process and leaves them feeling like they VIP clients
