Out of all the days in the year, it is for some, only on Christmas day and New-Year’s eve, that we decide to enjoy the finer things in life. Such as champagne, fine dining, or luxurious presents.
Research conducted by Bazaarvoice showed that in 2018, 76% of UK consumers turned to Luxury shopping for Christmas gifts.
The same research team found that in 2019, the UK had spent £78.580bn during the six weeks before Christmas, higher rates than France and Germany.
These are extravagant numbers, but how are luxury brands making so much profit during the lead up to Christmas? How are they reaching crowds that usually can’t afford these types of products?
How do luxury companies achieve this?
· The use of crowd-pleasing publicity campaigns right before Christmas is the primary tool to catch the consumers’ attention.
Publicities from luxury brands during the Christmas period are very important for their sales. In the last few years, we have seen many luxury brands producing campaign videos and interactive publicities for their Christmas collections.
For example, in 2019, Tiffany & Co launched their new perfume Tiffany & Co. Eau de Parfum. To promote this, they created an ice rink on Covent Garden which diffused the perfume onto the ice rink for onlookers to enjoy.
2019, London, Tiffany and Co Eau de Parfum publicity campaign
People turn to luxury publicities and brands because of the positive ‘feel good’ spirits that luxury products bring. During these troublesome times, it is necessary for Luxury brands to hit the right note, to not dismiss the world’s suffering but to bring positivity and happiness.
Lewis Hackney even says: “Purchasing a luxury item is a pick-me-up – it makes us feel better and like we are moving up in the world (albeit perhaps temporarily) when everything around us feels negative. Many people feel sad right now, which means there is a demand for these products and the feelings they bring.”
They cannot make it seem as if they are profiting from the pandemic and the misfortune of people. Even if people cannot afford to buy a full outfit, purchasing a small key chain or wallet from these brands creates a positive feeling.
Amy Kean, the founder of Six Things Impossible, agrees with this stating: “If there’s one thing that luxury brands are good at, it’s being slick. Based on the response we’ve seen to ads like Gucci’s Christmas party, people just want brilliant filmmaking that gives them all the positive feels.”
2020, Gucci “Christmas party” campaign:
· Luxury brands also use celebrities to promote their products. Using popular celebrities is a well-known tactic in the industry, from Luxury watches to cars, etc.
Pandora’s Christmas 2020 publicity “One lovely day” communicates diversity, inclusivity, and joy. They invited nine celebrities to take part in their campaign: Millie Bobby Brown, Coco & Breezy and the Pandora Muses – Nathalie Emmanuel, Halima Aden, Georgia May Jagger, Larsen Thompson, Tasya Van Ree and Margaret Zhang. Strong women that represent their values.
2020, Pandora “One lovely day” campaign
“United in their mission to spread holiday spirit, love and the joy of gifting, Pandora’s celebrity ambassadors have been transformed into their animated selves for the first time – celebrating their unique personalities and style. Passing through Los Angeles, New York, London, Australia and Shanghai in their giftbox sleigh, they will connect with Pandora fans across the globe. ‘One Lovely Day’ reminds us of the importance of coming together over the holiday season: be it physically, virtually, or even in animated form.” (Pandora)
Luxury brands heavily rely on Black Friday. It’s an important business strategy.
In 2018, it was found that 61% of consumers in the UK turned to Black Friday sales to buy luxury gifts for their loved ones for Christmas. With online shopping, it has become even easier to shop for sales.
Online retailers, especially this Christmas, are winning a lot of new customers. Making their stores accessible on online platforms is important, they must cater to the same experience as in-store service. It is predicted that in 2025, e-commerce will account for 30 percent of the luxury goods market.
With the current pandemic and shops being closed, many people have turned to online shopping. It will represent a large portion of their revenues. It is important for them, that when releasing new publicities, that the products offered can also be ordered online
For example, the Champagne House Moët & Chandon is offering for their 2020 Christmas campaign, limited edition gift boxes which can be personalised with a name or message. Their campaign is titled as “Specially yours”. This might seem to be a simple marketing tool, but it will make the difference compared to more traditional packaged champagne brands. These can be ordered online or bought in store.
2020, Moët & Chandon “Specially yours” campaign.
The mobile industry also profits as in the UK, in 2018, UK mobile ordering at Christmas (using smartphones or tablets) was more than half of all online retail spending.
People gift electronics as they often please everyone and anyone.
Big electronic companies also create publicity campaigns and also use celebrities to reach different consumers during Christmas.
Such as Samsung, that has come out with a Christmas campaign in collaboration with the famous Kpop band BTS, to promote their new wireless headphones.
2020 Samsung campaign, “Say yes to galaxy buds”
Luxury companies put a lot of effort into representing the “Christmas spirit” and selling a “dream” during the year, often only realised at Christmas.
With everything that has happened this year, why not splurge a little, and if you just want to get into the Christmas joy, luxury publicities are very entertaining.
Luxury does not have to be expensive, from what we have learned during the Pandemic is that the little things in life can make any situation enjoyable, even Christmas.