A business case study in the International Journal of Technology Transfer and Commercialisation shows how producers of luxury goods can benefit from a social media presence. Specifically, the team focuses on luxury watchmakers and their Instagram accounts.
Armansyah Adhityo Pramono, and Fitri Aprilianty of the School of Business and Management at the Institut Teknologi Bandung, in Bandung, Indonesia, have tracked the Instagram activities of five luxury watch brands in order to glean information about what works and what does not work on this photography-based sharing platform.
The team discusses the nature of the luxury watch market. It is a growing, sizeable, and profitable market but highly competitive and volatile, they write. There are complexities that need to be understood in order that a brand improve awareness among its target market.
Fundamentally, the team has demonstrated a positive association between social media marketing in this context, the relationship between brand and customer and purchase intention. It seems, as one might expect, that content that engages with the value customers place on status symbols such as luxury watches and their hedonism correlates with purchase intention but has not yet been used frequently in social media marketing for such brands.
In order to reap the rewards of investing in Instagram use for marketing of luxury watch brands, those brands must focus on the values that influence purchase intention the most but also improving the degree of engagement with their putative customers, the team suggests. In a world where social media is commonplace and everyday, brands must highlight exclusivity and authenticity as well as their association with high-status people and world events.
Conversely, there are aspects of marketing commonly used by non-luxury goods, such as consumer feedback and even consumer-led design that do not seem to have much effect on purchase intention of luxury watches. Similarly, special offers and promotions are not as important in this sector. After all, it is the luxurious quality of a brand that is the main appeal not its value for money. Luxury goods are commonly status symbols for hedonists and these characteristics are wherein their appeal lies and can be targeted on social media.
Pramono, A.A. and Aprilianty, F. (2020) ‘Social media and luxury brand: what luxury watch brands need to know when on Instagram’, Int. J. Technology Transfer and Commercialisation, Vol. 17, No. 4, pp.316–336.