Luxury brands Louis Vuitton

In response to emerging market consumers having increased wealth, luxury brands Louis Vuitton have also worked to establish sales networks within new markets to spur awareness and drive purchases through a physical store presence.

To further strengthen ties to a local market, a number of luxury brands have looked to secure raw materials by acquisitions. TRM cites an example of LVMH acquiring a Singapore-based leather business in 2011 to ensure its supply of finished leather and hide.

This trend is bound to continue, with Chanel recently purchasing a French lace mill and both Louis Vuitton and Hermes acquiring tanneries .

Despite best efforts, brands are finding it difficult to truly crack into potential markets, especially Brazil, India and China, due to high tariffs. While the growth potential of at-home retail struggles due to a lack of knowledgeable sales associates and other factors, travel retail has seen a growth in demand in the past five to 10 years.

Emerging market consumers, from counties such as China, Russia, Brazil, India and South Africa, have a penchant for travel retail, but due to currency devaluations, purchasing luxury goods abroad is poised to slow by 2020.

Comparably, TMR found that tourists from North America and European countries are now more likely to buy luxury items while abroad.

Acting accordingly, luxury marketers have developed innovative campaigns and activities via digital platforms to inspire travel retail purchases.

For example, LVMH-owned luxury travel retailer DFS Group is exploring the concept of loyalty with help from influencers and its own employees.

The company's fall "Loyalty is Everything" effort gathers personalities including designer Tory Burch, blogger Susanna Lau and model Caroline de Maigret to discuss their devotion to everything from their hometown to new experiences. While designed as a promotion for DFS' Loyal T program, none of the individuals speaks directly to their relationship with the retailer, allowing their stories to resonate on a human level.

DFS introduced Loyalty Is Everything on its social channels and its online content hub T Journal starting Aug. 1. Each featured individual is seen in a short video, with a corresponding text interview delving into their packing preferences and travel habits (see story).

At the local level, luxury brands are finding it difficult to truly relate to consumers in the many emerging markets due to the cultural differences between established markets and developing nations.

To best appeal to the cultural differences of an emerging market, a localized approach, with regional exclusives and promotions on local social platforms, can be beneficial for luxury brands looking to appeal to newly-affluent consumers.

French atelier Christian Dior recently tried its hand at social selling by offering its followers on Chinese messaging and social application WeChat the opportunity to purchase a limited-edition handbag directly through a post. While not alone in its WeChat efforts, Dior has become the first luxury house to sell a high-end handbag through the app, showing its potential for direct-to-consumer sales.

Acting accordingly, luxury marketers have developed innovative campaigns and activities via digital platforms to inspire travel retail purchases.

For example, LVMH-owned luxury travel retailer DFS Group is exploring the concept of loyalty with help from influencers and its own employees.

The company's fall ��Loyalty is Everything�� effort gathers personalities including designer Tory Burch, blogger Susanna Lau and model Caroline de Maigret to discuss their devotion to everything from their hometown to new experiences. While designed as a promotion for DFS' Loyal T program, none of the individuals speaks directly to their relationship with the retailer, allowing their stories to resonate on a human level.

DFS introduced Loyalty Is Everything on its social channels and its online content hub T Journal starting Aug. 1. Each featured individual is seen in a short video, with a corresponding text interview delving into their packing preferences and travel habits (see story).

At the local level, luxury brands are finding it difficult to truly relate to consumers in the many emerging markets due to the cultural differences between established markets and developing nations.

To best appeal to the cultural differences of an emerging market, a localized approach, with regional exclusives and promotions on local social platforms, can be beneficial for luxury brands looking to appeal to newly-affluent consumers.