New Clarivate Report Reveals Luxury Brands are Accelerating Digital Transformation to Meet Demands of Changing World
Brand IP and analytics from Clarivate shed new light on the luxury brands sector; brands are growing their presence in non-traditional sectors and adapting to a new generation of consumers
Clarivate Plc, a global leader in providing trusted information and insights to accelerate the pace of innovation, today released a new report, Luxury brands: Re-calibrating brand strategies for a changing world. Luxury brands are re-calibrating and advancing their digital brand strategies as they respond to today’s challenges and target new audiences and markets, according to the report.
Brands brave new sectors
Luxury brands are entering new sectors such as software, gaming and electronics, blurring previously clear lines between sectors. Computer, software, electrical and scientific products rank among the top five in terms of trademark filing activity for luxury conglomerate Moët Hennessy Louis Vuitton (LVMH), according to trademark research data in the report.1 The diverse business interests of LVMH, which range from luxury hotel management and fashion to wine and spirits, means that it is a microcosm of the luxury sector and therefore, a bellwether of broader industry trends.
Gordon Samson, President, IP Group, Clarivate, said, “Organizations faced unprecedented uncertainty in the last two years. Luxury brands were no exception. Spurred by the changing world, they have evolved the way they operate, from boosting their digital presence and embracing e-commerce to revamping the in-store experience to an immersive or hybrid experience. It will be interesting to see how and when luxury brands, masters of the art of brand building, accelerate the science of IP intelligence to inform decision making.”
Targeting Gen Z and millennial consumers
50% of luxury consumption globally is expected to come from young consumers by 2025.2 Generation Z and millennial consumers are less settled in their purchasing preferences, more adventurous and digital savvier than the older demographic luxury consumer. Brands are turning to digital to engage with these young consumers, adopting augmented reality (AR) and virtual reality (VR) technologies to bring virtual fashion shows and virtual showrooms to consumers’ living rooms. Trademarks filed by LVMH mentioning AR/VR in 2019 were more than double compared to the previous year, according to the report. Off-White, part of the LVMH family, registered marks for a VR headset, speaking to the brand’s appeal to a younger demographic.
Brands are also tapping on the Generation Z and millennial audience’s love of computer gaming, creating games to entertain and engage. Louis Vuitton launched Louis, a computer game aimed at the Generation Z demographic. The report revealed a spike in trademark filing activity for Louis Vuitton in the computer games and software category between 2018 and 2019, which preceded the launch of Louis.
Brand protection in the digital sphere
The digital era offers new opportunities but also increased risks. Luxury brands, like other brands, can fall prey to alleged scammers and profiteers. In fact, the report revealed that luxury brand owners are often present in arbitrations and litigation against domain names that are acquired for high-risk activities such as deliberately diverting web traffic. A growing number of arbitrations involve luxury brands’ trademarks being used in their entirety in domain names, as profiteers seek to benefit from luxury brands’ reputation.3
Samson concluded, “There are green shoots of recovery all over the world including in the luxury sector, but this recovery remains fragile. Luxury brands are contending with changing times, new audiences and greater expectations. Our brand IP and analytics, first unveiled in Top 100 Best Protected Global Brands 2021 offer context and fresh clarity to the luxury sector, helping to guide and inform brand owners’ strategy and decision making in a volatile landscape.”