Keeping in mind the effect of COVID-19 on businesses, it is expected that the country’s economic growth rate will be between 7.5-8.5 %. The Covid-19 pandemic had a lot of restrictions. And many a business sectors were affected due to it. And though now, businesses are reviving after a particularly daunting two-year period, the luxury goods industry in the country, exhibited phenomenal growth during the pandemic phase. And this has been possible due to different strategies adopted by various brands.
The luxury goods industry is expected to become a $200 billion industry by the end of the decade. Now, what is the sector doing right, amidst the prevalence of this deadly pandemic?
Digital marketing and video-assisted sales, helped in keeping the luxury goods industry in good shape. Communicating the product in the right manner and customizing it according to people’s wants, helped brands achieve sales. For example, the jewellery market, has literally exceeded performances and companies’ sales have seen phenomenal rise.
But how did this happen? We all saw laborers returning to their homes and factories being shut, for lack of labor. And also, safety became of utmost importance, for which, the industry came together and temporarily halted the import of rough diamonds. Along with this, various exemptions offered by the government helped the jewellery sector in starting to return to normalcy. Along with this, celebrating festivals and weddings on a low scale had people left with more cash-in-hand, that could be used for buying jewellery. And as jewellery always has enduring value, people preferred spending more on it, rather than on temporary gratification options.
Another example can be that of The Collective, which sells a plethora of luxury brands, like Versace, Ralph Lauren, Ted Baker etc. in the country. The brands managed to achieve sales, as they stayed connected to their customers, right from when the pandemic began. Communication, focusing on the consumer’s reality, is what kept it going for them. They also focused on personalizing the customer’s experiences, by assigning Partner Relationship Managers to customers. All of these strategies helped them sail smoothly on the sales front, throughout the pandemic.
Personalization, was the keyword for many other luxury brands too. Like Major Brands (India) that retails brands such as Aldo and Victoria’s Secret and even Faberge, a fine jewellery brand kept it real and personalized with customer interaction and giving attention to customer preferences by holding one-on-one online meetings, talking to them and understanding their requirements etc.
