African Fashion Online – Luxury & Digital Trends
There are two challenges and trends we’ve noticed for luxury brands globally— going digital and entering into Africa (or respective markets of interest). The good news however is that both, if leverage properly, can be used to expand business.
For example, if luxury brands embrace the use of digital media swiftly and precisely, they can reach, at very least increase demand and gather research on potential customers in Africa. Seven out of ten of the world’s fastest growing economies are in Africa, with 70 percent of the continent’s population living in countries that have incurred economic growth rates of more than 4 percent over the past decade. According to a 2011 report by the African Development bank, there is a large demand for products like mobile phones, televisions, and fashion. Roughly, 210 million people on the continent are considered middle class, and
“The Digital Challenge”
As the luxury fashion market enters the digital age, many high-end luxury retailers are concerned with their customers losing the feeling of exclusivity that comes with the experience of buying luxury goods.
With everything heading towards the digital realm, customers are losing that face to face experience and impeccable service they once had going into a luxury boutique or department store, but luxury brands are getting creative to give that special exclusive treatment back to their buyers, however, through digital means.
More importantly, brands should use the opportunity to leverage digital engagement to acquire consumers in other parts of the world. Africa, for example, specifically Nigeria
Here are some ways:
1. Augmented Reality. Recently, Tissot watch company handed out wristbands in front of a Harrod’s department store in London that when worn in front of an Augmented Reality (AR) screen let you virtually “try on” a watch and showed your wrist with the watch placed on it. This technology could be expanded to a variety of luxury boutiques giving you the ability to try on any number of watches, handbags, or jewelry right in your own home.
2. Dynamic, Creative, Video. The biggest problem these luxury retailers are having is how to create the in-store experience again. Many are turning to these videos that are interactive and change according to the users preferences and likes so just as if they were browsing through a boutique eyes purse after purse, the video will know where to go next so you are not directed to a slew of men’s products that would otherwise have little to no interest to you.
3. Facial Recognition. You’ve already seen this technology in movies where government agents and spies use it to gain access to restricted areas, but some companies are beginning to use this advancement in business as well. Unilever’s facial recognition kiosks dispense free ice cream to smiling fans, but imagine if this could be employed in your favorite luxury boutique or department store. Your experience could be instantly individualized based on past purchased, preferences, and gender and age statistics.
The “Entering into Africa Challenge”
Foreign Luxury Brands :
A. Partner With Local Brands & Consultants
B. Connect To Distribution Outlets
Entering into Africa, “Digital First” may be a viable option for many foreign luxury brands looking to penetrate the various markets on the continent, especially since opening stores in Africa presents brands with unknowns and challenges in logistics. However, to enter into markets properly, luxury brands will need to identify and establish connections with local distribution outlets.
Indigenous Luxury Brands
A. Evaluate your competitors
B. Align yourself with celebrities, luxury brands (even if on a consulting level), Globally
For Africa’s indigenous luxury brands – especially those involved in Africa’s fashion industry- may want to take note as to how established luxury brands are responding to the digital trends and quickly adopt the digital age and new advancements. Engaging the growing middle class in Africa through social media, irrespective of the “Gold Rush” will be essential in keeping or expanding market share.
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