There is an inescapable parallel between the global scale of the luxury market and the global threat of Covid-19. The luxury market and Covid-19 are inextricably bound up in consumer spending power all over the world, but especially in relation to China.

As a major player in the luxury market representing 35% of global luxury consumers, its sales decline has been catastrophic with store closures and reduced manufacturing hours. Despite the severe burden on the financial markets, wavering consumer confidence and a depleted market of tourist shoppers notorious for their deeper pockets, more luxury retail outlets are reopening their doors all over Asia, Europe and America. The sector has reported an enthusiasm amongst consumers and the beginnings of a healthy recovery for the sector. 

What is left to discuss is the way this will change the nature of marketing in luxury. For me, there are two key points to consider when approaching marketing strategies for luxury brands in the new normal. Much like the luxury market itself, the way we frame, discuss and experience it has to adapt to the unprecedented times in which we are living.

The first of a two-pronged approach to the necessary changes in luxury marketing is a short-term win, immediately actionable and completely intuitive. There is immense power in digital marketing and public relations, and its unrivalled reach pays service to the global nature of the luxury sector itself. Online sales in the luxury market are enjoying double-digit growth in America and Europe and only a slight lag across Asia throughout the crisis. The best communications campaigns listen to the constant commercial thrum and respond with innovative strategies to support the most viable route to market. With this in mind, marketing luxury brands in the new normal will involve a heavy digital focus, grounded in compelling, sharable content and slick, engaging social media campaigns. 

When it is safe to do so, consumers will return to physical stores with all the enthusiasm that comes with the novelty (and perhaps nostalgia) of offline retail experience, but many buying patterns developed throughout the lockdown will doubtless endure. If brands are wise to the benefits of developing a more engaging online presence, a more diversified online offering and a more considered digital marketing schedule now, they will reap the rewards of a more durable hybrid retail landscape of ‘clicks-and-mortar’.

The second way the marketing of luxury brands has to do not only with the way in which we develop new business strategies but with the stories we tell about these businesses. The consumer market is arguably more discerning and investigative than it has ever been before. Environmental sustainability and ethical treatment of workers are now non-negotiable factors in the establishment of any new brand across design, healthcare, beauty and technology, driven by an iron-willed market with spending power and good conscience. In the wake of the outbreak, the ethical issues that concern consumers have been heightened. Marketers will have to switch on to the rise of what Bain has coined the Post-Aspirational Mindset which sees consumers equating ethics with aesthetics when it comes to making buying decisions. The demand for conscience-led brands in the luxury sector will determine the stories commissioned by editors, dictating editorial and advertorial angles as luxury brands clamour to cut through the noise in the race to absolute product or service sustainability.