How Will Luxury Brands Market Themselves in 2021?

After surpassing the one year mark since the onset of COVID-19, companies continue to face disruptions - whether directly to their supply chains or to how they reach existing or future audiences - that will leave a permanent impact on how they run their organizations. Despite the turbulence, the pandemic has accentuated the way businesses now market their products. However, this opens new doors that allows brands to re-evaluate their audience, and different ways to market their product. So was this a disruption, or an open door for brands to reset?

In the previous financial crisis in the United States, the luxury industry came back stronger as luxury stocks were among the first to rebound. With brands taking a social responsibility role during the pandemic and Millennials and Gen Zs becoming the main consumer, the way the luxury industry markets to their customers is changing. Here are a few marketing trends we may see within the luxury industry in the next few years.

Social Responsibility

During the pandemic, many luxury brands took to stage to show support for their communities during the pandemic. Some donated to hospitals and non-profit associations and others transformed their production sites to produce materials to help combat the COVID-19 pandemic. This past year luxury brands Rolex and Tiffany & Co. among others made commitments to COVID-19 relief efforts. As younger generations care more about a brand’s values and what a brand stands for more than older generations, luxury brands should reevaluate their social responsibility moving into 2021.

Values and experience

Due to the COVID-19 pandemic, people are not purchasing as much. Individuals now not only shop for a product, but for something that will also add value to their life. As a result, luxury brands have and will continue to make shopping for their product more than an experience. Especially when it comes to jewelry and diamonds, one’s purchase is an investment and companies are creating new ways that jewelry can be a valued purchase.

A new virtual world

Now more than ever, convenience is something easy to come by, but also hard to come by due to the pandemic. People are able to hop on a Zoom call and communicate virtually; however, when it comes to the luxury industry, individuals do not have the privilege to easily try something on in person anymore. Therefore, luxury brands must formulate creative alternatives to market themselves virtually. Additionally, with everyone on zoom, virtual events will become a new way for companies to market their lines. Virtual events will allow marketers to do two major things, reach a larger audience as individuals will be able to join worldwide and also allow brands to have an authentic conversation with their customers.