Luxury brands are increasingly leveraging technology to reduce uncertainty and enrich experience throughout the customer journey
As consumers become more conscientious about their purchasing decisions, the demand for transparency has become paramount. Knowing where a product comes from and how it is made is a critical factor before committing to a purchase. This shift in consumer behaviour has reverberated across industries, prompting brands to rethink their value propositions in the face of increasing scrutiny.
The luxury sector faces a unique challenge in meeting consumer demands for transparency. Indeed, what makes products luxurious – taste, heritage, prestige – is often difficult to assess. As a result, there is a lack of clarity in how value is generated in luxury markets, how it progresses through various stages of production and distribution and how it is ultimately conveyed to consumers. Such a situation offers favourable conditions for counterfeit products to flood the market, eroding consumer trust and brand reputation.
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