Role of Influencers in Luxury Marketing

One topic that I find fascinating is the role that digital marketing plays in the luxury marketing/retail space. The luxury goods market is at an inflection point. It looks radically different than it did 10 years ago and with the current changes will look even more different in the coming years. The internet has wildly altered the luxury landscape and has led to the rise of influencers, which have become an essential part of how brands translate their story and reach their customers. The article notes that “influencer marketing is now worth $1 billion dollars annually and is the fastest growing form of digital advertising. 84% of brands will integrate an element of influencer marketing as part of their plans this year.” This article also points out, the use of influencers to promote luxury brands must be done with caution.

The retail landscape more broadly is changing. Brands are having to work harder to differentiate themselves. They have to be more creative and savvy in the ways that they attract customers. With the emergence of other, smaller, niche brands the larger, legacy brands are not able to rely as heavily on their brand awareness. Generally speaking, fashion brands are attempting to use all the digital tools at their disposal to attract customers and make sales.

Luxury brands however, have relied on their exclusivity – rare, few and finely made products, which is the opposite the democratized approach used by influencers. The aim of using an influencer to be to push the message out to as many people as possible. The author suggests ways that luxury brands can think about the effective use of influencers to promote their products. For some edgier fashion companies, for example the streetwear company Supreme, this might be an easier task than say, what role influencers can/should play in a more established company like Chanel, which is seemingly a much further reach.