Online customer engagement in the post-pandemic scenario: a hybrid thematic analysis of the luxury fashion industry

Abstract

The COVID-19 pandemic had a strong impact on all businesses, and especially the luxury sector. As an adaptation strategy, businesses are engaging in a digital transformation, moving all or most of their activities to online platforms. However, the nature of the luxury industry, deeply rooted in exclusivity and a high degree of human contact, is at odds with the mass-oriented, accessible, and automated nature of e-commerce, thus raising concerns about this industry's ability to reap the benefits of digital transformation. The present paper elucidates how luxury fashion firms can overcome this apparent incompatibility with e-commerce and engage with their customers successfully. Through hybrid thematic analysis of qualitative data from YouTube videos of 96 luxury fashion industry experts and using a conceptual model of Customer Engagement, recommendations were developed to help luxury firms improve their current and prospective online customer engagement efforts systematically. By highlighting their top priorities-including innovative solutions, era adaptation, and resource allocation-, luxury firms could enhance and manage customer activities more effectively in the context of a digital transformation, and ultimately establish a strong post-pandemic position.

Has the pandemic altered luxury consumption and marketing? A sectoral and thematic analysis

“…The literature suggested the innovation through digitalization and how luxury product manufacturers and service providers manage their organizations. Hoang et al (2022) suggested that organizations should restructure the enterprise's team structure from the traditional e-commerce team to a matrix team that works based on the customers' segments. Asian et al (2020) suggested that luxury products companies, especially luxury sports goods (LSG) companies, should conduct innovation in their supply chain by applying the risk-sharing and coordinating roles of flexible trade credit contracts to generate optimal decisions of wholesalers and LSG suppliers.…”

“…To induce the consumption of sustainable luxury products, the manufacturers should show the intangibility of the sustainability of their products by showing the related certificate or animal testing-free product guarantee (Hoang et al, 2022).…”

“…Digitalization has become imperative for luxury fashion products (Cattapan & Pongsakornrungsilp, 2022; Hoang et al, 2022; Pang et al, 2022; Syed & Haq, 2021; Watanabe et al, 2022). The sales of luxury products have declined in offline channels, but increased online during COVID‐19 (Pang et al, 2022).…”

“…The sales of luxury products have declined in offline channels, but increased online during COVID‐19 (Pang et al, 2022). Omnichannel and technologies like augmented reality, virtual reality, Livestream commerce, electronic wallets, and virtual fitting rooms are recommended to enhance the online shopping experience (Cattapan & Pongsakornrungsilp, 2022; Hoang et al, 2022). Luxury fashion manufacturers should also use these technologies to maintain brand exclusivity and authenticity by providing product tracking numbers.…”

Social media marketing for luxury brands: parasocial interactions and empowerment for enhanced loyalty and willingness to pay a premium

“…However, the conventional wisdom suggests that the luxury industry has not significantly benefited from social media due to the inherent nature of luxury brands, which are characterized as exclusive, scarce and prestigious, contradicting social media's attribute of mass access. In addition, the personalized physical interactions and services received in physical stores, which are essential to the luxury experience, are deemed unlikely to be replicated in an online setting (Hoang et al, 2022). In order to obtain a nuanced picture of the scenario, the present study strives to probe this phenomenon to examine the impact of social media communication and social media engagement on luxury brand outcomes.…”