Luxury is not only about the consumption of a brand, but also about the comfort, excellence and story of the brand. Companies that convey intangible values and deeper meanings to their audience can add value to their services and products. The world, and therefore luxury, is facing the rise of new generations of customers, the Millennials and now the GenZ. These customers are young, very resourceful when it comes to brands and their products, and they are digital natives. Therefore, luxury companies need to use technology effectively to manage their brand. According to a recent report by BCG (Boston Consulting Group) for the luxury sector, about 60 percent of Millennials and GenZ are looking for an experience with a personalized relationship with the brand. They want to build an emotional connection with the brand and receive products that are tailored to them. On the other hand, the Millennial generation is much more likely to buy luxury goods online compared to previous generations. According to a study by mOONshot digital and McKinsey & Company, online sales of luxury goods will more than triple their share of the global high-end market by 2025, reaching $86 billion, or nearly one-fifth of all luxury purchases. It was also found that at least 80% of all luxury purchases made today are influenced in some way by consumer's online experiences. In order to provide a personalized experience to customers and make digital sales effective, the company needs to have a clear view of the data about the customer's history and behavior toward the brand. In this context, it is clear that data and analytics are the most important factors to accelerate the transformation that luxury brands are facing. Big Data can effectively facilitate and transform relationships between customers and companies. By looking at the world from the customer's perspective, companies get to know their customers much better and can minimize the gaps and inconsistencies in their marketing strategies, leading to better engagement through more personalized campaigns and communications. Data analytics tools enable luxury companies to actively build loyalty rather than just respond to customer complaints. Big Data analytics provide a quantitative and qualitative view of the business and help identify meaningful trends that can be translated into better products, services or operational activities. Big Data also offers luxury manufacturers the opportunity to gather valuable customer information without having to discuss it with their affluent customers. Such information can provide luxury brands with important insights into their customers' lifestyles, shopping preferences, and buying behaviors. Data maturity is a measure of the extent to which a company uses its data. To achieve a high level of data maturity, data must be deeply rooted in the company and fully incorporated into all decisions and practices. This paper discusses the necessity and importance of Big Data and data analytics for the effective management of luxury brands.
Il lusso non riguarda solo il consumo di un marchio, ma anche il comfort, l'eccellenza e la storia del marchio. Le aziende che trasmettono valori immateriali e significati più profondi al proprio pubblico possono aggiungere valore ai propri servizi e prodotti. Il mondo, e quindi il lusso, sta affrontando l'ascesa di nuove generazioni di clienti, i Millennials e ora la GenZ. Questi clienti sono giovani, molto intraprendenti quando si tratta di marchi e dei loro prodotti e sono nativi digitali. Pertanto, le aziende del lusso devono utilizzare la tecnologia in modo efficace per gestire il proprio marchio. Secondo un recente report di BCG (Boston Consulting Group) per il settore del lusso, circa il 60% dei Millennials e della GenZ sono alla ricerca di un'esperienza con un rapporto personalizzato con il marchio. Vogliono costruire una connessione emotiva con il marchio e ricevere prodotti su misura per loro. D'altra parte, la generazione dei Millennial è molto più propensa ad acquistare beni di lusso online rispetto alle generazioni precedenti. Secondo uno studio di mOONshot digital e McKinsey & Company, le vendite online di beni di lusso aumenteranno di oltre il triplo della loro quota nel mercato globale di fascia alta entro il 2025, raggiungendo 86 miliardi di dollari, ovvero quasi un quinto di tutti gli acquisti di lusso. È stato inoltre riscontrato che almeno l'80% di tutti gli acquisti di lusso effettuati oggi sono in qualche modo influenzati dalle esperienze online dei consumatori. Per fornire un'esperienza personalizzata ai clienti e rendere efficaci le vendite digitali, l'azienda deve avere una visione chiara dei dati sulla storia del cliente e sul comportamento nei confronti del marchio. In questo contesto, è chiaro che i dati e l'analisi sono i fattori più importanti per accelerare la trasformazione che i marchi di lusso stanno affrontando. I Big Data possono facilitare e trasformare efficacemente le relazioni tra clienti e aziende. Osservando il mondo dal punto di vista del cliente, le aziende conoscono molto meglio i propri clienti e possono ridurre al minimo le lacune e le incongruenze nelle loro strategie di marketing, portando a un migliore coinvolgimento attraverso campagne e comunicazioni più personalizzate. Gli strumenti di analisi dei dati consentono alle aziende di lusso di fidelizzare attivamente anziché limitarsi a rispondere ai reclami dei clienti. L'analisi dei Big Data fornisce una visione quantitativa e qualitativa del business e aiuta a identificare tendenze significative che possono essere tradotte in prodotti, servizi o attività operative migliori. I Big Data offrono anche ai produttori di lusso l'opportunità di raccogliere preziose informazioni sui clienti senza doverne discutere con i loro clienti benestanti. Tali informazioni possono fornire ai marchi di lusso importanti informazioni sugli stili di vita, sulle preferenze di acquisto e sui comportamenti di acquisto dei loro clienti. La maturità dei dati è una misura della misura in cui un'azienda utilizza i propri dati. Per raggiungere un elevato livello di maturità dei dati, i dati devono essere profondamente radicati nell'azienda e pienamente incorporati in tutte le decisioni e pratiche. Questo documento discute la necessità e l'importanza dei Big Data e dell'analisi dei dati per la gestione efficace dei marchi di lusso.
The study on the impact of big data and data analytics in luxury brand management
Ramamoorthy, Bharat Kumar;Sheik Abdullah, Basith Jamal
2021/2022
Abstract
Luxury is not only about the consumption of a brand, but also about the comfort, excellence and story of the brand. Companies that convey intangible values and deeper meanings to their audience can add value to their services and products. The world, and therefore luxury, is facing the rise of new generations of customers, the Millennials and now the GenZ. These customers are young, very resourceful when it comes to brands and their products, and they are digital natives. Therefore, luxury companies need to use technology effectively to manage their brand. According to a recent report by BCG (Boston Consulting Group) for the luxury sector, about 60 percent of Millennials and GenZ are looking for an experience with a personalized relationship with the brand. They want to build an emotional connection with the brand and receive products that are tailored to them. On the other hand, the Millennial generation is much more likely to buy luxury goods online compared to previous generations. According to a study by mOONshot digital and McKinsey & Company, online sales of luxury goods will more than triple their share of the global high-end market by 2025, reaching $86 billion, or nearly one-fifth of all luxury purchases. It was also found that at least 80% of all luxury purchases made today are influenced in some way by consumer's online experiences. In order to provide a personalized experience to customers and make digital sales effective, the company needs to have a clear view of the data about the customer's history and behavior toward the brand. In this context, it is clear that data and analytics are the most important factors to accelerate the transformation that luxury brands are facing. Big Data can effectively facilitate and transform relationships between customers and companies. By looking at the world from the customer's perspective, companies get to know their customers much better and can minimize the gaps and inconsistencies in their marketing strategies, leading to better engagement through more personalized campaigns and communications. Data analytics tools enable luxury companies to actively build loyalty rather than just respond to customer complaints. Big Data analytics provide a quantitative and qualitative view of the business and help identify meaningful trends that can be translated into better products, services or operational activities. Big Data also offers luxury manufacturers the opportunity to gather valuable customer information without having to discuss it with their affluent customers. Such information can provide luxury brands with important insights into their customers' lifestyles, shopping preferences, and buying behaviors. Data maturity is a measure of the extent to which a company uses its data. To achieve a high level of data maturity, data must be deeply rooted in the company and fully incorporated into all decisions and practices. This paper discusses the necessity and importance of Big Data and data analytics for the effective management of luxury brands.| File | Dimensione | Formato | |
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https://hdl.handle.net/10589/185957