As the retail industry battles with rising rents on the high street and declining wage growth, many brands have begun re-drawing their digital tactics in the hope to boost their sales, both online and offline.
Understanding how digital channels grow and evolve is key to finding success online. As consumer segments mature, so do the products offered by businesses. In this blog, we walk through how leading luxury brand, Gucci, has done so.
Identify what products your audience is searching for, and adapt lines to meet fresh demand.
Over the past few years, under the direction of a new creative director, Alessandro Michele, Gucci has effectively transformed its brand from a traditional luxury house that prided itself on heritage and legacy, to one that is fresh, hip and digital.
Gucci re-invented its image, offering and digital strategy to attract a key demographic, the luxury millennial. These people are digital natives with high disposable incomes, who follow their favourite go-to brands on a variety of channels.
Leading in this direction, Gucci expanded their product lines to now offering products such as hoodies and sliders, taking a clear aim at this youthful audience. Going one step beyond this strategy, Gucci is now also actively collaborating with designers like Harlem tailor Dapper Dan, resonating with luxury millennials beyond Gucci.
Gucci’s strategy has paid dividends. Exclusive visitors to Gucci’s site (those who visit Gucci and not other top luxury brand sites like Louis Vuitton, Chanel, Burberry and Mulberry) were up 9% between April-June YoY. In contrast, other luxury brand exclusives were all down over this same period.
Develop content on digital channels your audience is actively engaged in.
Gucci also understands where this key audience can be found. As a result, the latest medium to have been embraced by Gucci is video, with this form of content becoming key to Gucci’s digital marketing success.
The result of this drive can be shown by traffic to Gucci’s site from YouTube rising by 65% in June YoY. Alongside traditional media campaigns for upcoming collections, Gucci has nurtured their subscriber base on YouTube to reach over 250,000 subscribers with campaign videos hitting millions of views.
Visits to Gucci’s website have been more spectacular, out-pacing their luxury rivals to enjoy 131% growth YoY, thanks to this knowledge of consumer behaviour and audiences.
Gucci’s ability to spot evolving customer segments has been a key to the successful growth of their online channels. By knowing where these evolving audiences are also engaging, Gucci has been able to either collaborate with the right partners or push content to the correct channels.
See more insights about digital challenges and tactics, plus our recommendations for retailers and brands to boost online performance with our UK Fashion Report.