If we had to predict what the most prevalent luxury market trend of the decade will be, our money is on how technology has disrupted the way that buyers perceive and interact with luxury goods and services. The prevalence of digital media in the everyday lives of consumers has given luxury brands good reason to rapidly rethink their marketing distribution channels and how much research their potential buyers do before making purchases.
Take, for example, Tesla, the tech start-up that’s been a subject of interest to us for a while. Tesla’s Model S has revolutionized the luxury vehicle concept with a high-performing, mold-breaking car that runs entirely on electricity and produces zero emissions. Now, after getting the highest rating ever recorded by Consumer Reports, plus consistent consumer satisfaction and other accolades, the Model S surpasses sales of traditional luxury players Audi and BMW in Europe. Sales also continue to climb elsewhere. This should give luxury automakers pause to consider how technology factors into their manufacturing, distribution and marketing.
Tech has disrupted the luxury sphere outside the purview of vehicle marketing, as well. In a recent Luxury Daily article, Sarah Jones highlighted the brand Dymant as another fascinating example of how some luxury retailers are adapting to the new digital sphere with incredible success.
Dymant is an online luxury goods retailer that crafts unique luxury lifestyle items for discerning clients. Founded just two years ago, Dymant already has a seven-figure revenue, with 8,000 member clients and 50 business-to-business clients. Employing over three hundred artisan craftsmen in luxury fields, Dymant crafts luxury objects meant to embody understated opulence for clients who may already seem to “have it all.” In addition to crafting unexpected items like mother-of-pearl decision coins and bespoke gold-plated jars for its member clients, Dymant also works with luxury houses like Chanel.
While Dymant crafts items with the traditionally refined quality of luxury objects, their process is anything but traditional. As Jones reports, digital technology is integrated into every part of the production process at Dymant. Their marketing model is also unusual. Like other successful luxury platforms, such as Gilt, Dymant started out as an invitation-only retailer. The brand has just opened its site to the public, but maintains exclusivity by refraining from doing any marketing whatsoever and opting out of showing up in Google search results. Given Dymant’s continuing success despite its lack of a marketing campaign, we can speculate that the kind of rarefied product Dymant offers and the word-of-mouth brand awareness it depends upon might be the key to success for luxury brands in the future.
Photo Credit: James Jordan