There is a reason why the Cannes Lions committee decided to add a ‘luxury and lifestyle’ category in this year’s awards season.
It’s because luxury has quietly taken the advertising world by storm. Since Covid, the demand for luxury has been growing at an incredibly rapid pace, all the while the landscape in which it resides continues to transform.
For us, at Oui Agency, this was an opportunity to go niche and cater to an industry that doesn’t follow the playbook of traditional marketing.
The rise of the luxury industry
The luxury market is expected to generate a revenue of US$ 368.90 billion in 2024. It is projected to grow about 3 per cent in the next four years. So needless to say, this is an industry we, as marketers, cannot ignore.
As the demographics and thus consumer behaviour have dramatically changed, the old-school way of marketing luxury goods just won’t cut it anymore.
Online shopping and digital marketing are at an all-time high. Meanwhile, there’s been a growing demand for luxury in non-Western countries such as China, the UAE, KSA, Qatar and India.
We are seeing the middle class increasing and they are starting to have a deeper appreciation for premium goods.
As the ‘new money’ consumer is more intentional compared to previous generations, marketing to them is different. They value experience, sustainability, convenience and brands that emulate their values and lifestyle.
Niche marketing
Before, luxury brands would feature their ambassador, often an A-list celebrity to evoke a sense of romance and allure in their commercial. Women would want to be like said celebrity and the men wanted to be with the celebrity or vice versa.
This was a classic recipe for desire and it that worked for years. Until now. Our target audience wants more than an aspirational video that doesn’t say much.
With social media and the internet, consumers have a very short attention span. So to keep them interested, the brand needs to engage with them uniquely. Nowadays, Luxury consumers want to experience impeccable storytelling.
Take Tag Heuer for example. They created the ‘Chase for Carrera film’ with Ryan Gosling. They used a charismatic actor in a 5-minute short that felt like a movie within a movie within a movie.
Because it was action-driven, funny, innovative, and on brand, people watched it till the very end while most of them would have scrolled past another 30-second cookie-cutter ad. If it feels like an ad, it probably won’t work as well.
With consumer behaviour changing, so has perception. Luxury brands are no longer just appealing for the sake of one’s image, people want to align with the brand on a deeper level. While these changes are relevant for the entire advertising industry, how we do this is, is unique.
Lamborghini understands this like no other. The premium car brand does not advertise on television, because it believes its value speaks for itself. Now, I don’t think luxury brands should take this route, but I agree that confidence is quiet and insecurity can be loud.
A brand that knows its worth, doesn’t need to scream it from the rooftops—it is elegantly, strategically quiet. And that’s a very different approach than the one used by the mainstream marketing industry, where mass exposure is encouraged.
So, how do we do it?
Marketing for luxury brands is different in every way. It’s in the tone of voice, in the way we produce a film and capture photos, in how we create the branding. We always have to ensure that it is understated, confident, elegant and sophisticated. Simplicity always trumps extravagance.
We tell brand stories that intrigue the consumer, make them feel like they are in the know and proud to be part of an exclusive group.
Traditional ad agencies tend to adapt their artwork to fit the various media and platforms. But at Oui, we create deliverables that are tailored to the medium. Just like luxury brands, we ensure that every detail of our work is intentional and qualitative.
I genuinely believe that luxury clients benefit from a boutique agency that knows how to deliver groundbreaking work with big ideas and sleek executions. As the industry further grows and evolves, I look forward to seeing how we will all creatively expand our horizons and pave the way for luxury.
By Remy Abouchakra – Founder of Oui Agency
