1. Introduction
With the background of rapidly developing digital technology, the dissemination model of conventional luxury brands is facing an enormous challenge [1, 2]. Traditional modes of propaganda usually involve expensive collaboration and advertising costs. In this situation, the conventional advertisement mode raises product costs for luxury firms and limits the scope and effect of propaganda. In most cases, the propaganda model can only reach a small target audience and cannot achieve the expected publicity effect. Thus, it reduces the effect and influence of propaganda. Additionally, the traditional ways of propaganda are mainly one-way information dissemination. This characteristic leads to a lack of interaction and engagement between enterprises and consumers, and it isn't easy to establish deep brand loyalty [3]. As a result, luxury companies urgently need to explore new publicity modes, break the restrictions of traditional models, and enhance brand exposure, influence, and loyalty [4, 5].
The emergence of new media provides brands with new publicity platforms and opportunities for luxury brands [6, 7]. It becomes an important way for luxury companies to break through the conventional publicity mode. LVMH, as one of the leading companies in the luxury industry, makes sufficient use of new media to establish a unique brand image and corporate culture [8]. Using precision positioning and promoting new media, LVMH has improved its brand awareness and won wide recognition and praise. Behind the high visibility is the promotion of specific products, which affects the company's sales and product turnover, bringing significant business value.
Based on the above background, this study explores the strategies and influence of new media marketing strategies adopted by LVMH in enhancing brand awareness and product sales. Specifically, this study will analyze how LVMH leverages new media platforms, such as social media, online advertising and content marketing, to interact with target audiences and evaluate the impact of these strategies on brand recognition and sales performance. At the same time, the study will explore the challenges faced by LVMH in marketing new media and put forward relative solutions and suggestions to promote the substantial development of the luxury industry in the new media era.
2. Case Description
Dior, under LVMH Group, is a well-known luxury brand that has shown unique innovation and leadership in marketing. As part of LVMH, Dior actively explores the enterprise strategy of using new media for marketing to adapt to the challenges of rapid digital change. Specifically, Dior's virtual fashion show is a notable example of its new media marketing strategy [9, 10].
Dior's virtual fashion show uses advanced new media technologies, such as filters and special effects, to synthesize virtual costumes and display them online. This innovative initiative brings an unusual visual experience to the audience, attracts focus from potential customer groups and increases interaction on social media. By using virtual fashion shows, Dior has successfully created a unique display platform that incorporates modern high-tech elements, bringing wider exposure and recognition to the brand. It's worth noting that Dior's virtual fashion show does not exist in isolation but in collaboration with well-known digital artists and designers to Improve the popularity of virtual clothing on the show and further enrich the interactive experience of the audience. Through this mode of cooperation, Dior has achieved not only great success in the field of new media marketing but also cleverly combined creativity and technology to inject new vitality and appeal into the brand.
3. Case Analysis: LVMH's New Media Marketing Strategy
3.1. Use of Social Media Platforms
LVMH actively uses a variety of social media platforms, including Instagram, Facebook, Twitter, etc., as the main channel for brand promotion and marketing. LVMH displays its unique brand image and value to users on these media platforms by publishing brand stories, product introductions, fashion information and other content. These social media accounts reach a wide audience range and cover consumers of all ages, professional backgrounds and interests. Everyone from young fashion enthusiasts to sophisticated luxury buyers will find something of interest in the media.
The advantage of new media lies in its two-way communication. Through social media, consumers can not only receive the information released by the brand but also directly communicate and interact with the brand through interactive ways such as liking, commenting and forwarding. LVMH can respond promptly to user comments and questions, establish more intimate and effective communication channels with consumers, and enhance the connection and trust between brands and consumers.
In addition, LVMH publishes timely information on brand events, offers, and promotions on social media; it attracts the attention and participation of many potential customers, enhancing the brand’s awareness and reputation. This intimate interaction with consumers not only expands the effect of the brand but also deepens the three-dimensional depth of the brand image in the market. Consequently, it strongly supports LVMH to maintain its leading position in the highly competitive luxury market.
3.2. Content Marketing and Brand Identity Building
LVMH delivers brand ideas, product information and stories in various forms through carefully planned content marketing to consolidate existing users' loyalty and attract new ones. Among the rest, video content marketing is one of LVMH's main promotional methods. Video has the characteristics of visualization, fast transmission speed and low publicity cost, so LVMH produces a series of high-quality video content covering brand philosophy, corporate culture and product introductions and widely spreads these videos to expand the influence of the brand.
In addition to video content, LVMH also conveys brand messages using various forms of content marketing, such as pictures and articles. The content focuses on visual effects and written expression to display a more comprehensive luxury, innovation and brand values. By publishing well-designed images and in-depth articles on new media platforms, LVMH can attract the attention of consumers and improve the brand recognition and goodwill of users.
Another key feature of new media marketing is two-way communication. LVMH uses social media platforms to establish direct communication channels with users so consumers can receive content posted by brands and interact with brands through comments, likes and shares. This two-way communication not only enhances the interaction between the brand and the user but also enables a better understanding of the user's needs and feedback to adjust the marketing strategy better and improve the user experience.
Through carefully planned content marketing, LVMH has successfully built its brand image on new media platforms, emphasized the brand's high-end, luxury and innovative image, solidified the loyalty of existing users and attracted the attention of new users. This new media marketing strategy has enabled LVMH to maintain its competitive advantage in a highly competitive market and laid a solid foundation for the brand's long-term development.
3.3. Opinion Leader and Netflix Collaboration
LVMH actively seeks brand-related opinion leaders and influencers to partner with and leverage their social media presence and large fan bases to expand brand exposure and influence. By partnering with well-known opinion leaders and influencers, LVMH can showcase its products on social platforms, invite them to participate in brand events, and publish related content. This kind of cooperation can fully use the personal recognition of opinion leaders and influencers. It improves product awareness and credibility and expands brand exposure and influence.
Especially for young consumers, LVMH can take advantage of its love of influencers and celebrities to inspire young consumers to spend on luxury goods driven by emotional support through partnerships with these familiar social media personalities. This kind of collaboration can help young consumers understand the brand and psychologically close the distance between the brand and consumers to establish a deeper emotional connection.
For specific consumer groups, LVMH can also customise the content of the collaboration to make it more in line with the brand's image, so as to arouse the audience’s resonance and attention. By collaborating with opinion leaders and online celebrities, LVMH is able to organically combine its brand image with the needs of its audience, achieving a closer connection between the brand and its consumers, and thus enhancing the brand's influence and competitiveness in the market.
4. Luxury Digital Marketing Suggestions
In the digital age, the luxury industry must completely transform its marketing strategy to adapt to the new market environment and consumer needs. Luxury brands need to adopt new marketing strategies in the digital age, including providing sophisticated marketing content, personalized service, innovative experience and high-quality after-sales service. These strategies will help the brand maintain a competitive edge in a highly competitive market and achieve long-term development and growth.
4.1. Content Marketing
Luxury brands should aim to provide sophisticated and compelling marketing content. That means a detailed display of product features, processes and brand unique features, such as through video introductions, so that consumers understand the brand more deeply. In addition, brand endorsers can also bring additional exposure and credibility, further increasing brand awareness. At the same time, regular publication of fashion-related design elements and inspirations helps to maintain engagement with potential customers, strengthening brand recognition and user engagement.
4.2. Personalised marketing
In the digital age, personalized marketing has become an important strategy for luxury brands to gain competitive advantages and increase market share. By utilizing advanced digital technology and data analysis techniques, brands can gain more precise insight into consumers' preferences, interests and shopping behavior to provide personalized services. This personalized marketing strategy can meet consumers' diversified shopping needs and enhance their trust and loyalty to the brand.
Customized service is a key aspect of personalized marketing. By analyzing consumers' purchase history, preferences, and body size data, luxury brands can provide products or services tailored to their unique needs and tastes. For example, brands can customize clothing, accessories, or other products based on a consumer's body characteristics, preferred style, and personal preferences and provide a unique shopping experience that enhances their purchase intention and satisfaction. Personalization recommendations are also an important part of personalized marketing. By analyzing consumers' shopping history, browsing history and preferences, brands can recommend products or services that meet their interests and needs for consumers. For instance, Based on consumers' buying preferences, brands can recommend new launches, limited edition items or products related to their interests to stimulate their desire to buy and enhance their confidence in purchasing decisions.
4.3. Technological Innovation
Luxury brands should explore new experiential marketing methods to create a different shopping experience. With new technologies such as virtual reality (VR) and augmented reality (AR), brands can offer consumers unique and engaging shopping experiences, such as virtual fitting rooms and AR product displays. Through the virtual dressing room, consumers can try various clothing styles and matching schemes in a virtual environment; without having to go to the physical store to try them on, they can enjoy a full range of shopping experiences. This virtual dressing room not only saves consumers time and energy but also makes it more convenient for them to choose suitable products and improves the satisfaction and experience of purchasing. With AR product displays, brands can place virtual products in real-life scenarios and allow consumers to experience the product's appearance, functionality and performance from their phone or tablet. Consumers can enjoy the charm of luxury goods at home or anywhere else through AR technology, enhancing their goodwill and awareness of the brand.
This innovative experience can attract consumers' attention and increase their goodwill and loyalty to the brand. By providing a distinctive shopping experience, luxury brands can establish a unique brand image and competitive advantage to attract more consumer attention and support. In brief, innovative technologies play a crucial role in the digital marketing of luxury brands, bringing more business value and market opportunities to brands.
4.4. Brand Services
In the digital era, brands should pay special attention to the quality of after-sales service. This is not only to meet the needs of consumers but also to enhance brand loyalty and reputation. To resolve consumers' questions and concerns promptly, establishing a sound after-sales service system, including multi-channel feedback mechanisms, such as online customer service and social media customer service, is essential. Through timely and effective after-sales service, the brand can gain the trust and support of consumers and enhance the brand image and reputation. Besides, brands can motivate consumers to buy luxury goods through customized member benefits and activities, further enhancing brand loyalty and competitive advantage.
5. Conclusion
Based on the above analysis, this study believes that by actively utilizing social media platforms and focusing on content creativity, social influence and personalized marketing, LVMH has successfully established a closer relationship with consumers, transmitted its brand values, enhanced its brand awareness and influence, and thus promoted its sales growth. Through continuous innovation and optimization, LVMH maintains its leading position in the luxury industry. This shows that in the digital age, luxury brands must actively adopt new media marketing strategies and substantially innovate and optimize to adapt to consumer needs and market changes to maintain a competitive advantage and sustainable development.
References
[1]. Liu, X. (2022). Research on the Digital Transformation of Luxury Brands in China. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 999-1003). Atlantis Press.
[2]. Som, A., & Blanckaert, C. (2021). The Road to Luxury: The New Frontiers in Luxury Brand Management. John Wiley & Sons.
[3]. Joy, A., Sherry Jr, J. F., Venkatesh, A., Wang, J., & Chan, R. (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion theory, 16(3), 273-295.
[4]. Athwal, N., Wells, V. K., Carrigan, M., & Henninger, C. E. (2019). Sustainable luxury marketing: A synthesis and research agenda. International Journal of Management Reviews, 21(4), 405-426.
[5]. Shahid, S., Paul, J., Gilal, F. G., & Ansari, S. (2022). The role of sensory marketing and brand experience in building emotional attachment and brand loyalty in luxury retail stores. Psychology & Marketing, 39(7), 1398-1412.
[6]. Phan, M., Thomas, R., & Heine, K. (2011). Social media and luxury brand management: The case of Burberry. Journal of Global Fashion Marketing, 2(4), 213-222.
[7]. Furui, Y. (2021). Analysis on Marketing Strategy of Luxury Brand under the Context of New Media: Taking Gucci as An Example. J. Econ. Bus. Manag., 9.
[8]. Khelladi, I., & Castellano, S. (2022). Play it like Burberry!: The effect of reputation, brand image, and social media on e-reputation–luxury brands and their digital natives fans. In Research Anthology on Social Media Advertising and Building Consumer Relationships (pp. 1447-1466). IGI Global.
[9]. Antonaglia, F., & Passebois Ducros, J. (2020). Christian Dior: The Art of Haute Couture. The Artification of Luxury Fashion Brands: Synergies, Contaminations, and Hybridizations, 113-139.
[10]. Kim, S. J. (2023). Virtual fashion experiences in virtual reality fashion show spaces. Frontiers in Psychology, 14, 1276856.
Cite this article
Cai,Y. (2024). The Impact of New Media Strategies on Luxury Marketings: A Case Study of LVMH and Dior. Advances in Economics, Management and Political Sciences,116,130-134.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 8th International Conference on Economic Management and Green Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).
References
[1]. Liu, X. (2022). Research on the Digital Transformation of Luxury Brands in China. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 999-1003). Atlantis Press.
[2]. Som, A., & Blanckaert, C. (2021). The Road to Luxury: The New Frontiers in Luxury Brand Management. John Wiley & Sons.
[3]. Joy, A., Sherry Jr, J. F., Venkatesh, A., Wang, J., & Chan, R. (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion theory, 16(3), 273-295.
[4]. Athwal, N., Wells, V. K., Carrigan, M., & Henninger, C. E. (2019). Sustainable luxury marketing: A synthesis and research agenda. International Journal of Management Reviews, 21(4), 405-426.
[5]. Shahid, S., Paul, J., Gilal, F. G., & Ansari, S. (2022). The role of sensory marketing and brand experience in building emotional attachment and brand loyalty in luxury retail stores. Psychology & Marketing, 39(7), 1398-1412.
[6]. Phan, M., Thomas, R., & Heine, K. (2011). Social media and luxury brand management: The case of Burberry. Journal of Global Fashion Marketing, 2(4), 213-222.
[7]. Furui, Y. (2021). Analysis on Marketing Strategy of Luxury Brand under the Context of New Media: Taking Gucci as An Example. J. Econ. Bus. Manag., 9.
[8]. Khelladi, I., & Castellano, S. (2022). Play it like Burberry!: The effect of reputation, brand image, and social media on e-reputation–luxury brands and their digital natives fans. In Research Anthology on Social Media Advertising and Building Consumer Relationships (pp. 1447-1466). IGI Global.
[9]. Antonaglia, F., & Passebois Ducros, J. (2020). Christian Dior: The Art of Haute Couture. The Artification of Luxury Fashion Brands: Synergies, Contaminations, and Hybridizations, 113-139.
[10]. Kim, S. J. (2023). Virtual fashion experiences in virtual reality fashion show spaces. Frontiers in Psychology, 14, 1276856.