{"id":23557,"date":"2020-07-02T13:03:22","date_gmt":"2020-07-02T11:03:22","guid":{"rendered":"https:\/\/www.deptagency.com\/?post_type=article&p=23557"},"modified":"2023-07-20T09:56:12","modified_gmt":"2023-07-20T07:56:12","slug":"how-luxury-brands-can-use-marketplaces-as-a-marketing-platform","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-dk\/insight\/how-luxury-brands-can-use-marketplaces-as-a-marketing-platform\/","title":{"rendered":"How luxury brands can use marketplaces as a marketing platform"},"content":{"rendered":"
\n\t\n\t<\/svg>\n\t\t\t\n\t\t\tBack to all articles\t\t<\/span>\n\t\n<\/a>\n\t\tHow luxury brands can use marketplaces as a marketing platform\t<\/h1>\n\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/picture>\n\t\n\t<\/div>
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\n\t\tSanne Huldalgaard\t\t
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\n\t\t\t\t\t2 July 2020\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n<\/div>\n\n
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\n\t\tMarketplaces have earned a reputation for facilitating a fast, transactional relationship, fulfilling supply and demand in the most efficient way. Though this strategy fundamentally clashes with luxury retail brands\u2019 approach to affinity marketing, all types of brands have flocked to marketplaces as a tactic to keep business afloat during store closures and supply chain disruption. The onus is now on the luxury sector to find creative ways to adapt to new boundaries.\t<\/h2><\/div><\/div>\n\n
\n\t\tIn the first quarter of 2020, Amazon reached the $1 trillion market cap, as Q1 net sales rose 26%\u00a0 to $46bn. At the same time, UK high street retailers including Debenhams, Beales, John Lewis and Harrods were announcing job losses and store closures. It\u2019s the end of an era, not only for some of Britain\u2019s longest-standing department stores, but also for the brands that rely on retail concessions.\u00a0\t<\/p><\/div><\/div>\n\n
\n\t\tWith commerce beginning to stabilise, it\u2019s a great time for businesses to re-evaluate their marketing plans and contemplate if the decisions made during a period of crisis will withstand. Marketplaces offer a great solution to start selling online with a straightforward onboarding process, but are they the right way forward for luxury businesses? Can brands in this space find a balance between generating high volume sales, whilst continuing to develop brand equity and customer loyalty? The answer is yes \u2013 and we\u2019ll explain how throughout this article.\t<\/p><\/div><\/div>\n\n
\n\t\tIt\u2019s almost never a straightforward solution when it comes to luxury e-commerce. As consumer expectations continue to evolve, an increasing number of brands are activating marketplaces to enhance their commerce strategy. Continue reading, as we review the top three ways marketplaces are lifting luxury brands to the next level of e-commerce.\t<\/p><\/div><\/div>\n\n
\n\t\tHow to use marketplaces as a marketing platform\t<\/h2><\/div><\/div>\n\n
\n\t\t1. Mainstream marketplaces amplify reach<\/strong>\t<\/p><\/div><\/div>\n\n
\n\t\tTaking into account how much Amazon and other leading marketplaces spiked during the first quarter of 2020, individual shops on those platforms should have also been performing exceptionally well. If you were an existing seller, how does your level of transactions compare to this time last year or the previous period? If you\u2019re a new shop, have you surpassed targets? If so, by how much?\u00a0\t<\/p><\/div><\/div>\n\n
\n\t\tEssential and low-value items, where factors like price-point and next-day delivery, are key to purchasing have historically dominated the top marketplace, but there are other ways for retailers to gain value from Amazon. Don\u2019t forget, it\u2019s by far the most visited e-commerce website, with enormous amounts of traffic that just keeps growing.\u00a0\t<\/p><\/div><\/div>\n\n
\n\t\tHistorically, it\u2019s been difficult for luxury brands to stand out in a sea of sameness; within a confined parameter, displayed in a grid format among the 353 million products currently listed on Amazon. But the marketplace has now released A+ and A+ Premium pages for store owners to better communicate their advantages with a storytelling page design. This functionality, partnered with onsite optimisation and advertising capabilities, is being utilised by more luxury brands to cleverly unlock the value Amazon provides.\t<\/p><\/div><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\n\t