 The luxury and fashion sector caters to goods for which demand increases more than proportionally as income rises. A luxury brand is a brand for which a majority of its products are luxury goods, and includes certain brands whose names are associated with luxury, high price or high quality. Due to the nature of the products that these brands sell, all their communication must convey quality, emotion and desire. Since the customer base is relatively small, it is essential to build a strong customer retention strategy given the loyalty of many customers and the high customer lifetime value. Furthermore, most luxury organizations have several different brands, thus offering major opportunities of cross-selling. A large budget is allocated to producing highly emotional and quality marketing and advertising material. Spectacular events are also held to build on the value of the brand. Relationship marketing Given the importance of the brand value, it is essential to convey this value in all marketing activities. This is why i-comm is ideal for luxury brands in building a stronger and closer relationship with their important customers. i-comm will provide many benefits to luxury brands:
Distributors It is essential that these luxury brands communicate efficiently to their distributors in regards to issues such as the marketing of the brand and products, new product launches, events, sponsorships, advertising, testimonials, press articles. Today, this is mainly done through distributor conferences, sales visits, mailings, extranets, and email communications. Most of these are reactive and difficult to measure consumption and effectiveness. Are the right people receiving the right content? i-comm will ensure that the required marketing messages are getting to the right people within these distributor organizations in the appropriate way. Quality will be maintained, messages can be targeted, simple for the end-users to use and the brands can measure the consumption of the messages through a sophisticated reporting tool. Retailers Typically, luxury brands sell through multiple independent retailers who are selling a multitude of brands. Thus, it is important for the brands to stand out and to have a strong communication with the owners and sales people of these retail outlets. It is essential to communicate messages in the right light: new product launches, technical information, events, special offers, training of new people, and that the right people are getting the updated information. i-comm platforms to retailers can also integrate such functionalities as incentive programs, merchandise offers, “best sales person of the month”. |
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