93% of Consumer Engagement with Luxury Brands Happens on Instagram
Branded content on Instagram consistently earned the most engagement across social media. Marketers must be mindful in navigating a world of increasingly vocal, socially conscious consumers while safeguarding their brand against controversies.
SINGAPORE, 30 November 2018 – Digimind, the global leader in social listening and market intelligence, released a new report that analyzed consumer discussions and interactions with leading luxury brands, such as Louis Vuitton, Hermès, Gucci, Burberry, Prada, Chanel, and more on social media, blogs, and websites. The report identifies consumer behaviors and trends, and elaborates on how to use these insights to monitor brand reputation and drive engagement.
40% of luxury purchases are influenced by what consumers see online, and their interactions with a brand. With millions of conversations occurring daily on social, the impact of social networks and online channels on a luxury brand’s visibility and reputation cannot be understated.
Furthermore, today’s consumers gravitate towards brands whose social values align with their own. Thus it is important for brands to not only have a point of difference, but also a point of view that resonates with their customers. For the luxury goods industry, this means standing for the exclusivity and sophistication customers come to them for, as well as maintaining prestige and trust.
How should brands leverage social media as an extension of their brand values and customer experiences, and to manage their online brand reputation?
Instagram is the King of Engagement
Branded content posted on brand pages revealed Instagram was the king of engagement for luxury goods, accounting for 93% of total interactions earned. On top of that, the average engagement rate for a branded posts on Instagram during the period studied was 30%, far higher than the 2% of average engagement earned on Facebook and Twitter posts.
In an age of fast changing trends, it is important for luxury brands to retain their timelessness, as well as their position at the forefront of fashion and lifestyle trends by staying relevant and engaging.
At the same time, the rise of social media has given both band advocates and critics a louder voice. Luxury marketers must be mindful when navigating a world of increasingly vocal, socially conscious consumers. The need to safeguard their brand against emerging controversies and potential fallouts with customers is high, as we recently witnessed with Dolce & Gabbana and Balenciaga, earlier this year. Monitoring trends in conversations on social media is the first step in being able to avert such crises.
Gucci, Chanel, and Hermès Shine in User Discussions
50% of online consumer discussions were dominated by three brands: Gucci, Chanel, and Hermès. Discussions peaked for these brands due to offline activities such as product launches and fashion events, which sparked discussions among consumers and the media.
Celebrity appearances at fashion shows and on the catwalks were also frequently discussed by fans, demonstrating the traction of fandom in Asia Pacific. For luxury brands, celebrity influencers are a key factor in marketing strategies, and thus being able to choose an influencer that aligns closely with brand values is critical.
Comparison of Discussion Volume and Trends about Gucci, Chanel, and Hermès
Now Streaming: Fashion Week
Paris Fashion Week 2018 was highly talked about on social media in Asia Pacific, with an estimated 3.3 million reach and 35,000 social interactions in the week alone. Discussions related to this exclusive industry event peaked on 26 September 2018, with fashion and lifestyle magazines covering runway looks and collections.
Australia and Indonesia accounted for 54% of online discussions around fashion week. In addition to discussions about various runway and red-carpet looks, livestreams from Christian Dior, Gucci, and Burberry were also discussed prominently.
This effort to livestream major events, such as Fashion Week, has resulted in increased online visibility and word of mouth for luxury brands. Far from diluting exclusivity, livestreams allow luxury brands to build aspirational values by allowing a much larger audience to preview upcoming collections than in the past.
“Social media has caused a shift in luxury marketing. What used to be an extremely controlled and elite industry has now become one whose main aim is to be aspirational. While luxury brands have embraced a digital mindset in their marketing and communications strategies, there is still a huge potential to use social media intelligence to further elevate customer experiences and sales,” says Mr Stephen Dale, General Manager APAC, Digimind. “For example, during livestream fashion shows, luxury brands can attain consumer insights to help stores plan purchasing and merchandising of stock based on the items and colours of the images consumers share geographically.”
Digimind is the global leader in AI-Powered social listening platforms and market intelligence software, designed for brands and agencies who want to accelerate digital transformation through an insights-driven approach. Recognized by Forrester and Gartner, Digimind’s best-in-class technology transforms social and online data into actionable business insights, enabling marketers to effectively plan, execute, and analyze their marketing strategy.
Digimind is based in New York, Paris, Singapore, Grenoble, and Rabat, serving more than 600 customers worldwide including LinkedIn, Sony, McCann Worldwide, and Lexus. Learn more at www.digimind.com.
Sophia Guan, Marketing Manager APAC
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