2016 Luxury Industry Predictions From The Experts

The Digital Factor & Luxury’s Challenges

Tamar Koifman, Head of Sales & Marketing and Lead Strategist at Digital Luxury Group looks at the ever-evolving digital sphere and how the entry of new players, fresh channels and changing search behaviours adn technologies will alter the way luxury operates across borders in the year to come.

I think that every single year since at least 2008 has been forecasted as “the year of mobile,” but I believe that in 2015 this finally rang true. For the first time we saw that Google’s mobile search volumes surpassed those of searches via desktop. Companies such as Net-a-Porter (now Yoox Net-a-Porter) reported new records in mobile e-commerce sales and it’s been estimated that mobile commerce now represents 30% of all US e-commerce sales.

On top of that, working with a range of digital marketing luxury execs, I’ve seen that many have finally taken a “mobile first” approach of first designing for mobile interaction, and then making sure it also works on desktop, unlike what was done in past years.

Mobile will continue to be a priority in 2016 but with a more focused look at certain aspects, such as messaging apps.

One of the biggest forces to the digital world in 2016 is the continued growth and sophistication of messaging apps such as WhatsApp, WeChat (mostly in China), Facebook Messenger, and the like.

Luxury brands may wonder what place they have in a world of two friends texting with one another, but if we look at the functionalities quickly being incorporated into these environments, we can see that there is possibility for a real commerce platform.

Today on WeChat it’s possible to: book flight tickets, check your banking account, download product catalogs, order a taxi, find local boutiques, buy products, talk to brand customer service reps, make restaurant reservations, and so much more.

“ We’re seeing new functionalities being rolled out by the minute, with full integration expected by 2016 ”

This advancement in China hasn’t been lost on Facebook, operator of Messenger and WhatsApp, and we’re seeing new functionalities being rolled out by the minute, with full integration expected by 2016.

Of special note is Messenger’s concierge service, M, which aims to revolutionize the way we go about our daily lives.

From asking M, in plain English, to help find an open table at a local restaurant or to book a flight to Miami, it’s believed that we should have a new and very helpful “friend” come 2016.

So there you have it luxury – strap in, and get ready for the rollercoaster ahead. May the force be with you. We have faith you’ll knock 2016 out of of the park – and we can’t wait to see what you’ll come up with next.