With Article 50 about to be called any minute now everyone in the UK is understandably uncertain about what the commercial future holds. But one thing that seems to be certain is that the luxury sector is experiencing quite a bonanza year so far as a consequence of the falling pound.
Just before Christmas, London’s Oxford Street was crowded with overseas visitors who appeared to be buying up the town as inbound tourism, principally from USA, China & Japan continued to surge. Tourist spending in UK stores increased considerably over the festive season clocking in at over £24 billion in visitor spending!
The falling pound
Let’s face the facts – luxury handbags, fashion apparel, eyewear and watches are all now cheaper here in the UK with their relative affordability making this market the top destination in the world for luxury shopping. OMD’s research further shows that roughly 65% of luxury products are currently selling for less in Britain than in the US, China, Japan and France, making it easier for inbound shoppers to offset the cost of their airfare against these bumper savings!
Seducing the Chinese traveller
Despite growing talk of China moving to a more national consumption economy, Chinese male millionaires still prefer Burberry & Chanel to top Chinese brands and love the shopping experience at Harrods, which has been acclaimed as the Best London Luxury Shopping Destination for the fourth consecutive year. The fact that they have hired over 100 Chinese interpreters to offer excellent and often personalised customer service to visitors is obviously a strategy that seems to be paying off! As high-paying customers who are used to the browsing and purchasing standards of WeChat & AliPay, the Chinese luxury shopper expects the very best service, including a choice of payment options, online chat assistance pre & post purchase and delivery within 1-2 days if not immediately.
An estimated 133 million Chinese outbound travellers will spend a forecasted $322 billion in 2017 and the UK wants to ensure it gets its fair share. The secret of success here appears to be getting in earlier on the shopping consideration journey and fully leveraging the research phase via social media and messaging apps to ensure you create the right list of ‘must have’ brands to buy before you set off travelling.
Duty-free has become a luxury shopper ‘destination’ in its own right
The global duty-free market is expected to grow to $64 billion by 2020, driven by a combination of low-cost tourism and increased demand for high-end brands, particularly from Asia-Pacific. With increasing numbers of High Net Worth individuals passing through airport terminals, luxury houses have realised the importance of producing items specifically for the duty-free market only which cannot be found on the High Street. Spending 50% of my life dashing through airports myself, I can understand first-hand the importance of squeezing in that luxury purchase as a critical moment of self-gifting to reward a few days of hard slog. Why not? We are worth it!
London Heathrow’s head of e-business and CRM, Simon Chatfield, recently said that when travellers describe what’s important to them at airports, retail is one of the highest priorities after punctuality and safety. Heathrow is also increasingly leveraging its own data sources from car park bookings to terminal Wi-Fi connections to help them hone their strategy around the profile and specific needs of the millions of different people who pass through their doors every day.
In 2014 Heathrow started their personal shopping service and over one million passengers have actually used the service to date. They also have approximately 25 personal stylists who speak over 14 languages to try and boost that special pre-flight luxury purchase. The recently installed social networking mirror at Terminal 5, inspiring friends to be part of the purchase decision, will undoubtedly also help protect Heathrow’s reputation for being the World’s Best Airport for Shopping.
A fresh approach
Global economic shifts and technological disruption are clearly redefining the rules of luxury marketing. It has never been more challenging to design a path to success and link the power of brand storytelling to the commercial importance of ‘getting that sale’. The power of video is now undeniable and some of OMD’s recent work with Tubular Labs has highlighted the fact that there is a growing consumer desire to get ‘behind the scenes’ of the once rarefied world of luxury – increasing its overall accessibility but without destroying the allure of scarcity.
We are playing a huge part in challenging our global luxury clients to ‘change the marketing model’ to better align with a new breed of influencers and brand evangelists. The Instagram generation are clearly luxury ‘owners in waiting’ and are dictating exactly how they want to search, browse and buy. Satisfying their needs will undoubtedly secure a bumper sales year for luxury in the UK and beyond.
Originally published by Luxury Daily.
With Article 50 about to be called any minute now everyone in the UK is understandably uncertain about what the commercial future holds. But one thing that seems to be certain is that the luxury sector is experiencing quite a bonanza year so far as a consequence of the falling pound.
Just before Christmas, London’s Oxford Street was crowded with overseas visitors who appeared to be buying up the town as inbound tourism, principally from USA, China & Japan continued to surge. Tourist spending in UK stores increased considerably over the festive season clocking in at over £24 billion in visitor spending!
The falling pound
Let’s face the facts – luxury handbags, fashion apparel, eyewear and watches are all now cheaper here in the UK with their relative affordability making this market the top destination in the world for luxury shopping. OMD’s research further shows that roughly 65% of luxury products are currently selling for less in Britain than in the US, China, Japan and France, making it easier for inbound shoppers to offset the cost of their airfare against these bumper savings!
Seducing the Chinese traveller
Despite growing talk of China moving to a more national consumption economy, Chinese male millionaires still prefer Burberry & Chanel to top Chinese brands and love the shopping experience at Harrods, which has been acclaimed as the Best London Luxury Shopping Destination for the fourth consecutive year. The fact that they have hired over 100 Chinese interpreters to offer excellent and often personalised customer service to visitors is obviously a strategy that seems to be paying off! As high-paying customers who are used to the browsing and purchasing standards of WeChat & AliPay, the Chinese luxury shopper expects the very best service, including a choice of payment options, online chat assistance pre & post purchase and delivery within 1-2 days if not immediately.
An estimated 133 million Chinese outbound travellers will spend a forecasted $322 billion in 2017 and the UK wants to ensure it gets its fair share. The secret of success here appears to be getting in earlier on the shopping consideration journey and fully leveraging the research phase via social media and messaging apps to ensure you create the right list of ‘must have’ brands to buy before you set off travelling.
Duty-free has become a luxury shopper ‘destination’ in its own right
The global duty-free market is expected to grow to $64 billion by 2020, driven by a combination of low-cost tourism and increased demand for high-end brands, particularly from Asia-Pacific. With increasing numbers of High Net Worth individuals passing through airport terminals, luxury houses have realised the importance of producing items specifically for the duty-free market only which cannot be found on the High Street. Spending 50% of my life dashing through airports myself, I can understand first-hand the importance of squeezing in that luxury purchase as a critical moment of self-gifting to reward a few days of hard slog. Why not? We are worth it!
London Heathrow’s head of e-business and CRM, Simon Chatfield, recently said that when travellers describe what’s important to them at airports, retail is one of the highest priorities after punctuality and safety. Heathrow is also increasingly leveraging its own data sources from car park bookings to terminal Wi-Fi connections to help them hone their strategy around the profile and specific needs of the millions of different people who pass through their doors every day.
In 2014 Heathrow started their personal shopping service and over one million passengers have actually used the service to date. They also have approximately 25 personal stylists who speak over 14 languages to try and boost that special pre-flight luxury purchase. The recently installed social networking mirror at Terminal 5, inspiring friends to be part of the purchase decision, will undoubtedly also help protect Heathrow’s reputation for being the World’s Best Airport for Shopping.
A fresh approach
Global economic shifts and technological disruption are clearly redefining the rules of luxury marketing. It has never been more challenging to design a path to success and link the power of brand storytelling to the commercial importance of ‘getting that sale’. The power of video is now undeniable and some of OMD’s recent work with Tubular Labs has highlighted the fact that there is a growing consumer desire to get ‘behind the scenes’ of the once rarefied world of luxury – increasing its overall accessibility but without destroying the allure of scarcity.
We are playing a huge part in challenging our global luxury clients to ‘change the marketing model’ to better align with a new breed of influencers and brand evangelists. The Instagram generation are clearly luxury ‘owners in waiting’ and are dictating exactly how they want to search, browse and buy. Satisfying their needs will undoubtedly secure a bumper sales year for luxury in the UK and beyond.
Originally published by Luxury Daily.
Now that CES is behind us for another year, we look beyond the Vegas Strip at tech news and developments from around the globe. First up, China’s leading messaging app ‘WeChat’ has released ‘mini programs’, embedded apps which require no download or install. By removing this step in the consumer experience, could this be the “app store” as we know it? We’ll just have to wait and see.
In the meantime, Facebook and Instagram’s Stories are increasing their ad usage. Whilst we’re seeing more and more ads, recent research has found the majority of Instagram users find their presence to be a seamless integration into the experience. Instagram demonstrates that branded content can work if done with thought and purpose. And finally, with a turbulent year behind us, check out this visual roundup of 2016 to change your perception. Go on…you might be surprised.
HEADLINES
INSIGHTS
COOL
- BMW have developed an AR ‘Product Visualiser’ – interestingly powered by Google’s Tango technology – that enables customers to get close to and customise selected BMWi models that appear before their eyes.
- Beautifully put together and mightily impressive: Kickstarter’s 2016.
- Uber Movement aims to help cities ‘grow in a way that works for everyone’.
DEEP READS
As ever, please read, learn and share away, #OMDFWD
Now that CES is behind us for another year, we look beyond the Vegas Strip at tech news and developments from around the globe. First up, China’s leading messaging app ‘WeChat’ has released ‘mini programs’, embedded apps which require no download or install. By removing this step in the consumer experience, could this be the “app store” as we know it? We’ll just have to wait and see.
In the meantime, Facebook and Instagram’s Stories are increasing their ad usage. Whilst we’re seeing more and more ads, recent research has found the majority of Instagram users find their presence to be a seamless integration into the experience. Instagram demonstrates that branded content can work if done with thought and purpose. And finally, with a turbulent year behind us, check out this visual roundup of 2016 to change your perception. Go on…you might be surprised.
HEADLINES
INSIGHTS
COOL
- BMW have developed an AR ‘Product Visualiser’ – interestingly powered by Google’s Tango technology – that enables customers to get close to and customise selected BMWi models that appear before their eyes.
- Beautifully put together and mightily impressive: Kickstarter’s 2016.
- Uber Movement aims to help cities ‘grow in a way that works for everyone’.
DEEP READS
As ever, please read, learn and share away, #OMDFWD
Technology is affecting in dramatic fashion how we live, work, eat, socialise and play. 2016 saw the rise and rise of virtual reality, with virtual assistants moving out of our phones and into our homes and smart home technologies finally breaking into the mainstream. Undoubtedly 2017 will see a plethora of new technological breakthroughs and the Digital Trends piece below details five of the most revolutionary – including the Internet of Things based on interoperability, artificial intelligence, the rise of synthetic food, augmented reality and 3D printing for all. Will Christmas 2017 see us eating man-made turkey and asking our artificial assistants to wrap the latest 3D printer to go under the tree?
HEADLINES
INSIGHTS
COOL
DEEP READS
As ever, please read, learn and share away, #OMDFWD. Happy new year to all!
Just in time for this summer’s Olympics in Rio, Facebook has launched its very own Snapchat-style camera. It comes at a time where, despite strong business success, Zuckerberg’s social platform has recently seen a 21% decline in the amount of posts shared per user and a rise in competition from rival Snapchat. According to the company, “people are increasingly sharing via videos and photos”, so this measure has been taken with the aim of boosting the number of posts uploaded daily. So now, when someone wants to share what’s on their mind, they will now be given the option of an open camera. After all, video is definitely on the rise. Please do share anything interesting you spot on Twitter with #OMDFWD
HEADLINES
INSIGHTS
COOL
DEEP READS
Over 28 million people have committed Netflix infidelity by watching a TV episode without their partner, with 12% of “cheaters” then admitting to re-watching the show with their other half pretending it’s the first time they have seen it. So to help couples stay faithful, ice cream brand Cornetto has come up with the perfect solution. Coined the Commitment Rings, couples can register the NFC-connected rings via the app, log in and watch their favourite series, but only when the rings are together, putting an end to what Cornetto has called the “worst type of cheating”. Cornetto is currently negotiating with streaming apps, including Netflix, Hulu and Amazon Prime TV, with a view to launch the rings in the near future. While this sounds a truly brilliant insight-led idea, we do wonder if this will become more than a PR stunt and be used on a day to day basis by consumers. As always, share anything interesting you spot with #OMDFWD
HEADLINES
- With DeepText Facebook will be able to ‘instantly’ understand every post and every message, and react accordingly.
- Instagram officially launches new tools, confirming much of what had been rumoured previously, including new business profiles and analytics. Recode have not been alone in commenting how the Instagram business model is looking more and more like the mother ship, Facebook.
- Google AMP is getting mixed reviews from publishers.
INSIGHTS
COOL
DEEP READS