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Luxury Marketing Trends in 2022: Why Brands Invest More in Digital Content

What separates successful luxury brands from their competitors is the ability to understand and speak the language of high-end consumers, and, above all, appeal to them using the right marketing strategies. Only those willing to innovate, to respond quickly to new trends, will be the ones who beat the competition. Let’s discover luxury marketing trends for 2022, find out why brands focus on the digital space, and what kind of content comes to the forefront when promoting luxury items.

According to Gartner, luxury brands are spending 33% of advertising costs on digital marketing. The three most important strategic priorities for luxury goods and services companies in 2021 were website enhancements, content marketing, and influencer marketing (Luxury Daily Survey). High-end brands focus on improving their online websites due to the rapid growth of e-commerce. They strive to make online shopping not only more convenient but also more entertaining for the new luxury consumer — millennials and gen Z who will be the dominant luxury market demographic by 2025. Content marketing, in turn, is a great tool to target these generations since they feel completely at home in the digital space and expect superior online experiences.

Since modern consumers prioritize experiences over things, they demand to be entertained by brands with more immersive formats holding stronger appeal. That’s why high-quality and engaging content production is in the spotlight for luxury brands. Trying to embrace the latest digital trends to keep up, high-end retailers incorporate rich media into their marketing strategies. Rich media is much more dynamic than text and flat images and, therefore, provides a ‘richer’ user experience. Luxury marketers use videos, live streams, podcasts, Instagram stories, 3D imagery, Augmented Reality, and Virtual Reality to make the audience engage with the content rather than simply consuming it.

For example, Swiss watchmaker IWC Schaffhausen has partnered with Google to release an interactive Virtual Reality movie to engage with the brand’s audience. The movie allows consumers to embark on a motorbike ride with award-winning actor Bradley Cooper. The decisions the viewers make along the ride influence the outcome of the story. According to the brand, the key was to make the experience accessible to everyone, whether a collector of luxury timepieces or a tech enthusiast excited about the latest in VR innovation.

In a similarly content-driven effort, Balenciaga has created multi-platform game Afterworld: The Age of Tomorrow. Players are invited to take an interactive journey based on “mythological pasts and projected futures”, exploring the Fall 2021 collection modeled by game characters. Initially, a select group of people were invited to play the game via VR headsets instead of attending an in-person runway show. Now anyone can access the video game via Balenciaga’s website. This is a great example of how a luxury brand can use rich media to present new items and attract consumers’ attention to them online.

By introducing rich media into content marketing and product demonstration, luxury brands provide a more interesting experience to consumers, which accelerates customers’ journey and increases their engagement. Since modern luxury consumers have high expectations for experiences which shape how they feel about brands, rich media can have a massive impact. As we reach into 2022 and beyond, luxury brands will invest more in rich media, such as audio and visuals, that encourage viewers to engage and interact with their content.

One of the most effective formats of rich media is immersive content. Immersive technologies like 3D imagery, AR and VR turn customers’ journey into a memorable experience and bridge the gap between online and offline. They help high-end retailers replicate the in-store experience, allowing consumers to “feel” luxury items without actually visiting brick-and-mortar stores.

With Cappasity, providing such an experience gets easier than ever. Cappasity lets companies create & deliver 3D/AR experiences to blur the line between online and in-store shopping. It is a scalable solution for large-scale businesses that allows them to shoot 3D Views (data format developed and patented by Cappasity) at the speed of 1 SKU per 3 minutes (vs 30 min for alternative solutions) while maintaining the maximum content quality.

When it comes to luxury e-commerce, the quality of product visualization plays a crucial role in consumers’ decision-making process. The Norstat study found 60% of consumers have abandoned the purchase of luxury goods because they can’t see enough of the product. Unlike other content formats, Cappasity 3D Views provide photorealistic quality and 4k resolution, allowing consumers to interact with items like they would in real life: rotate them, choose different angles of perception, zoom in, and inspect all tiny details. By engaging with a 3D View of a luxury item, consumers have the opportunity to estimate its quality and materials in detail and make an informed purchase decision.

After embedding interactive 3D Views into online stores, Cappasity’s clients see higher time on the product page, higher conversion rates (30%+ increase), fewer returns, and fewer customer inquiries. For example, Claris Virot, a leather goods fashion house, noticed significant improvement in consumers’ engagement after integrating with Cappasity:

“Our customers are a priority for us and we want to deliver the best possible browsing experience to them. Cappasity’s cutting-edge technology makes online shopping easier and more natural for them, allowing them to study materials, textures, and colors in every detail. This helps us to differentiate in the market and showcase our unique products as never before. With Cappasity, our visitors spend an average of 19 seconds more time browsing products and 26 seconds more on the most popular bags,” comments Jean-Christophe Ankaoua, President of Lion-Snakes (Marque Claris Virot).

The more time a customer spends on a product page, the more likely they are to add the product to their shopping cart and end up with a purchase. According to Google Benchmarking, the average time on a product page for e-commerce websites is 38 seconds. Yet, purchase probability is at its highest when a person spends around 50 seconds on a product page. Data obtained by Cappasity shows that the average interaction time with a 3D View is 15–30 seconds, depending on the product category. As a result, interactive 3D Views increase the average time on a product page by 40%, leading to the highest possible purchase probability. Aurelia Ammour, Co-founder and CEO of SHOES 53045, pointed out that the Cappasity solution has helped the brand to increase the average time on page:

“Cappasity’s technology is just as innovative and edgy as we are. By offering the possibility to discover our shoes from every angle, it is the perfect technology to improve customer experience. We have noticed that our clients now spend more time on the product page than they did before. The Time on Page has been improved by 18% thanks to interactive 3D images.”

On top of interactive 3D Views, Cappasity’s solution for fashion allows brands to create AR holograms within as little as 15 minutes (vs 3–5 days for alternative solutions). AR holograms let consumers place items into real-life environments and better understand how they look and fit in real life. AR technology makes the online shopping experience more engaging and allows luxury brands to replicate the in-store experience.

To experience the 3D View in AR, click the Cube icon.

Additionally, Cappasity provides virtual try-on for watches and rings. Accessories, watches and jewelry are the third returned category of products; among the main reasons for returns are the wrong size or fit and a mismatch between the item and its description. All of these reasons for returns are connected to the fact that while shopping online, the consumer doesn’t have the opportunity to examine the item in close detail as they would in a brick-and-mortar store. With watches, consumers usually aren’t able to evaluate the size of the watch dial and compare it with the size of their wrist, often causing frustration when the product arrives.

AR watches try-on solves this problem by allowing consumers to try on watches from the comfort of their home. Unlike other try-on solutions, it doesn’t require a wrist marker, which makes it easy to use. The user simply needs to choose their wrist size in cm or inches and then try the watch on to see how it fits. Providing consumers with try-before-you-buy experience is a great way to increase their engagement and reduce the number of returns.

To provide your luxury consumers with unforgettable online shopping experiences, feel free to contact our team at support@cappasity.com

Stay tuned and follow us on Instagram, Twitter or Facebook for more news on immersive content!

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Bring an in-store browsing experience to online retail with Cappasity, the first complete 3D product imaging solution for your website, mobile app, VR and AR applications.

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