Market Summary - Luxury Advertising Media

At a Glance

Whilst the majority of retailers face the dark reality of the economic downturn, the luxury industry feels little turbulence and remains to be an untouched playground for the rich and famous. Although there has been a shift in consumers’ behaviour and acts of conspicuous consumption have declined, the power and also the desire to consume luxury products goes from strength to strength.

Europe is the epicentre of the luxury market, with BRIC countries acting as a catalyst in driving luxury consumption. For many luxury stores, the Middle Eastern customer has traditionally played a significant role. More recently there has been particular growth from the Asian market, especially China and Hong Kong, where there is a high demand for the luxury houses across categories, such as clothing, fine jewellery / watches, handbags, shoes and even wine and liquors.

“As of the end of March 2011, China’s total consumption of luxury goods reached $10.7 billion and the country now accounts for a quarter of consumption worldwide”

Luxury Press titles, have always dominated and showcased the best of the luxury brands; it is inevitable that this will always be a popular medium, but how stimulating are they for the reader and how effective are they in driving consumers to purchase. As we increasingly spend more time out of home, digital media, whether it be signage, online or social media has an ever increasing role in influencing consumers.

Hot Topics

Digital Driving Luxury

The future of publishing is debateable for fashion brands, but what is apparent is the shift from traditional media to more engaging and innovative digital platforms. Digital, online and social media are becoming more popular for the luxury industry. Engaging content is the key to a successful ad campaign and these innovative mediums are a perfect fit for the forward thinking luxury market.

Retail houses in particular are creating cutting edge campaigns, which veer away from what is traditionally perceived as ‘bought media’. Thinking outside of the box naturally has positive effects; word of mouth advertising is as precious as any marketing.

Digital Case Studies:

What Is Luxury Media

Traditionally, the term luxury is perceived to be an expensive and desirable product or brand. Today, luxury can be determined and influenced by a number of elements; audience, environment, location, brand and medium.

Luxury media therefore can fall under the same umbrella of categories… a luxury brand can advertise on an outdoor site, in addition to having a premium position in a glossy high-end magazine, both mediums can be defined as luxury media, due to the brand who is advertising. The reason behind a premium brand advertising on two very different mediums can be driven by location and by audience, mass footfall / impacts for that brand and or quality of the audience.

Audience is a prominent influencer in defining luxury media. The Asian market, in particular China is currently driving the luxury market. There is a clear correlation between this forward thinking technology savvy country and the increased use of digital media, from both a consumer perspective through the increased use of online shopping and consequently from a brands perspective.

Boston Consulting Group’s recent report, The World’s next E-Commerce Superpower identified “China as home to the largest population of internet users: 457 million in 2010, more than in the United States and Japan combined. As internet usage ramps up, so too does adoption of online shopping, aided by a umber of circumstances that set the stage for a coming e-commerce explosion”

The benefit for luxury brands as like any other sector is that digital media platforms offer the capability to track and measure online campaigns and measure the ROI of an advertising campaign, something that is challenging for other media.

How Does Advertising within a Retail Environment Work?

Key Features & Benefits of Harrods Media

Environment
Harrods is an environment that captures consumers in a relaxed and receptive mindset. Advertisers can create a high impact campaign that also offers a point of sale opportunity. Whilst the majority of Harrods Media clients are stocked within the store, there are also a number of external companies who buy media to connect with the niche consumer and utilise Harrods as a platform to expose their luxury brand.

Cross Media Platform
Harrods Media is a unique media owner with a portfolio of above and below the line opportunities, offering advertisers a 360 media solution. Harrods Media portfolio consists of in-store media (digital, posters, displays, windows), Harrods Magazine (ABC accredited C.104,997),  CRM (targeted marketing to Harrods Loyalty Card customers), Online (Harrods.com), store App.

Audience
Harrods is a destination that welcomes the world and has en enviable consumer base. Harrods CRM team are able to provide audience demographic and behavioural data using information sourced from the Harrods rewards card member.

Key Audience Strengths

In-Store Media
Our media is strategically located in key areas that capture the flow of consumers throughout the store. Although the number of impacts cannot be measured by advertising site, footfall per door can accounted and a measurement per advertising location can be interpreted.

Based On Active Harrods Rewards Card Members (406,000)

• 70% female
• 80% ABC1
• 69% 21-49 years old (average customer is 42 years old)
• 72% UK residents

• 75% are female; 25% are male
• 47% are aged between 31–50
• 39% live within 1.5–10 miles of Harrods
• 18% live less than 1.5 miles from Harrods