By M. Isi Eromosele

With over 75 percent of wealthy Internet users actively using social media, the question is no longer if luxury brands should utilize the web as a luxury market, but rather a question of how to do so.

The dynamics of the online marketplace continue to shift with the exponential growth of social media platforms. Consumer behaviors and expectations are also changing with the growth of these social media platforms.

As social media establishes itself as the premiere venue for information exchange, the conventional methods of messaging favored by many luxury organizations will become increasingly irrelevant.

Although luxury brands face unique hurdles, they also stand to reap significant rewards by embracing social media. Social media is still a relatively uncharted frontier for luxury brands and the early adopters will have a large advantage moving forward.

Success will be dependent on these companies developing strategies that address the new behaviors of the modern affluent consumer online while appreciating that luxury brands in social media must remain just that, luxurious.

Today, the more informed and newly empowered consumer is demanding more from brands, especially luxury brands than they had traditionally received. With the power they have acquired through social media, these consumers now essentially dictate how organizations market to them.

The Luxury Difference

Luxury brands distinguish themselves through superior quality, from the actual product itself to the in-store experience to the cachet of the brand. Purchasing a luxury good is

akin to making an investment.

This is why luxury brands take pride in every step of the process, from design conception to production. Social media can help demonstrate to consumers the level of craftsmanship that goes into production and can serve as a powerful way to showcase the luxury difference.

Impactful, turn-key solutions such as telling the distinguished story of the luxury brand help affluent consumers appreciate the significance and history of what they are buying.

Social Media – The New Luxury Marketing Paradigm

While social media has empowered consumers with deeper insight, it has also had an unintended consequence for luxury brands. In the past, communications from luxury providers to consumers were provided through tightly controlled traditional media channels (print, television, direct marketing, etc.) to influence the conversations of the elite.

As such, only those with the means to purchase luxury goods had influence on the desirability of particular goods and services. Simply put, luxury consumers made purchase decisions based on other luxury consumers.

Social media has opened doors to give a wider range of consumers access to both information and products previously unavailable to them. With respect to luxury brands, what is desirable or undesirable is no longer the sole purview of the traditional luxury audience.

While portraying that image remains crucial in social media, the reality is that even non-luxury consumers can now have an impact on the success or failure of luxury brands. Over time, a crowd of relative unknowns can create a tipping point for a luxury product’s success or, if they so desire, failure.

Many of the qualities that luxury brands are built on such as tight quality control and immersive shopping experiences, may seem contrary to the nature of social media communications.

Certainly, the use of social media inherently trades some control for increased engagement. The reality is that discussions about brands are happening already and will continue to flourish with or without the direction of the brands themselves.

Many of the qualities of luxury brands are built on such attributes as tight quality control and immersive shopping experiences, which may seem contrary to the nature of social media communications.

However, the use of social media inherently requires the luxury marketers to relinquish some control for increased engagement with their prospects and customers. The reality is that discussions about brands are happening already and will continue to flourish with or without the direction of the brands themselves.

Luxury brands face a choice: influence the conversations themselves or be drawn into the discussion through less desirable circumstances. These brands can no longer afford to differentiate thenselves purely on higher price points and claims of quality. They need to prove their worth online in other ways.

A luxury brand requires stringent attention to the qualities that make the brand what it is. To maintain that level of quality online requires a commitment of both human and financial resources. Corners cannot be cut just because it is the Internet.

Cheapening a brand’s image online will have the same negative effects as it would in the real world. A semi-functional website; a dead social media profile; an inadvertently tacky sponsorship can all factor into a luxury brand’s downfall online.

Due to the fickle nature of brand equity, any social media marketing done without a well-researched approach and full scale commitment is highly risky. Social media marketing shares a fundamental similarity to other marketing activities: with a well-developed strategy and good execution, luxury brands stand to gain in the short and long term.

Challenges Online

Social media for luxury brands is no longer an optional marketing consideration. The definition of a luxury consumer and of luxury itself has changed. Luxury brands must deliver brand experiences online to see continued success.

With a deep understanding of how these new tools can be used appropriately, brands can harness the power of social media to directly communicate with their audiences, promote their brands and raise their brand equity.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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