Despite cultivating growth in the Mainland China region, Burberry’s sales in the EMEIA region were down 75%. The main culprit? Large discounts.
Most luxury brands have lost a staggering amount of earnings during this crisis, but a lot of these drastic results could've been avoided with brand audits.
If a consumer bought a luxury handbag for $5,000 before the crisis, but it’s now available for 25% less, brand damage will be significant. Brands risk alienating their most loyal consumers in the hopes of attracting ad-hoc, one-time customers.
Luxury brands that struggled before the outbreak will continue to lose momentum in China if they don’t transform their digital capabilities.
Almost all high-priced products get called "luxury" these days, but prices don't define which brands get considered luxury brands. Only extreme value can do that.
Luxury consumers will only get more demanding in the future, and the key to attracting a new generation of buyers will be greater personalisation.
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