Go digital or go home: the digital transformation of luxury brands

• Autor(a) principal: Ferreira, Leonor Picciochi Goes
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/21947
• topic: Luxury; Luxury brands; Digital; Social media; Consumer perceptions; Luxo; Marcas de luxo; Redes sociais; Perceção do consumidor

Luxury industry have been perceived incompatible with digital technology for many years. The present dissertation purposes to understand how a digital strategy can coexist with a luxury one, assuring the respect for the brand fundamentals. Since there is an important trend of growth in the sales of luxury products through digital channels, and apps, it is essential to understand in depth the consumers' preferences and motivations while buying luxury goods or services online, in these. To investigate this topic in more detail, a survey was conducted in order to understand the perception, motivations and preferences towards luxury as a more globalized and digitalized sector, and their openness to buying these products through digital channels. The theoretical perspectives on this matter are extensively discussed in this thesis to understand how a digital strategy can influence a luxury brand's performance, and how relevant it is to include the digital tools in the brands' strategies. Research states that the profile has been changing in the past few years, being now, on average a younger consumer, leading to a change in his consumption patterns. In 2025, millennials are expected to represent 50% of the market, and Generation Z 8%. For this reason, it is key to understand what they expect from luxury brands, since they will be the big share of the pie in about five years. Consumers nowadays value more the experience, the proximity with a brand that they can relate to, making them feel understood, connected and unique. 75% of people already have a digital influence, partial or full, in their purchase experience of luxury. The quality of the product, the exclusivity of the product/service, social and environmental responsibility of the brand, the value of the product/Service perceived by others, social media presence, the engagement with Influencers and collaborations with other brands, revealed as the most important factors when choosing a luxury brand.