Social Commerce for Luxury Brands: Strategies, Trends and Future

19/06/2023 By Ghia Marnewick Reading Time: 4 minutes

We spend a huge amount of time on social media today. In fact, research shows we spend roughly 2 hours and 31 minutes every single day on social media platforms.

Savvy businesses are taking advantage of this with social commerce, which combines social media and e-commerce in a brilliant fashion. It involves the use of social media platforms, such as Facebook, Instagram, or TikTok, to facilitate product discovery, promotion, and purchase.

It’s an area of commerce that’s thriving at present. In fact, in 2022, social commerce generated approximately $728 billion in revenue worldwide.

Social Commerce Strategies for Luxury Brands

When developing a luxury brand social media strategy, one area you need to consider carefully is social commerce. Here are some strategies you could leverage:

Social listening and engagement – Luxury brands should actively monitor social media channels to listen to customer feedback, address inquiries, and engage in meaningful conversations. Prompt and personalised responses help build trust and enhance the overall customer experience.
Host virtual social media events – Hosting virtual events, such as live-streamed fashion shows or behind-the-scenes tours, can generate excitement and foster a sense of exclusivity among their loyal followers.
Create a seamless purchasing journey – Implementing seamless and secure shopping experiences across social media platforms is crucial for luxury brands. Integrating “buy now” buttons, simplified checkout processes, and secure payment options can reduce friction and increase conversion rates.
Offer personalisation – Luxury brands should leverage data analytics and customer insights to personalise the social media shopping experience. Tailoring product recommendations, providing personalised styling tips, or offering personalised packaging can enhance the luxury experience and create a sense of individuality.
Share exclusive social media offers – Luxury brands can leverage social commerce to offer exclusive discounts, limited editions, or pre-access to new collections.

Trends in Social Commerce for Luxury Brands

Luxury brands need to stay attuned to the evolving trends in social commerce to remain relevant and effectively engage with their target audience. Social commerce trends that are thriving at the moment include:

Livestream Shopping

Livestream shopping has gained immense popularity, allowing brands to showcase their products in real time while offering interactive shopping experiences.

Luxury brands can leverage livestream events to unveil new collections, provide behind-the-scenes glimpses, and offer exclusive deals, creating a sense of excitement and urgency among their audience.

Augmented Reality (AR) Experiences

AR technology enables virtual try-on experiences, allowing customers to visualise how luxury products like clothing, accessories, or cosmetics would look on them before making a purchase.

By incorporating AR into their social commerce strategies, luxury brands can enhance the online shopping experience, mitigate the inability to try products, and improve customer satisfaction physically.

User-Generated Content (UGC)

UGC plays a vital role in social commerce as it fosters authenticity and builds trust among consumers.

Encouraging customers to share their experiences and images of luxury products can amplify brand reach and influence purchasing decisions.

Luxury brands can feature UGC on their social media platforms or leverage it in their advertising campaigns.

Social Cause Marketing

Aligning with social causes that resonate with their target audience can be a powerful way for luxury brands to connect with consumers on a deeper level.

By advocating for meaningful social or environmental issues, luxury brands can differentiate themselves, build brand affinity, and attract socially conscious consumers.

Future of Social Commerce for Luxury Brands

The future of social commerce for luxury brands holds immense potential for innovation and growth. As technology continues to advance, luxury brands can expect even more seamless and immersive shopping experiences for their affluent customers.

Augmented reality (AR) and virtual reality (VR) technologies will enable virtual try-on experiences, allowing customers to interact with products virtually, visualise how they look, and make more informed purchasing decisions.

Social commerce platforms will likely become more sophisticated, incorporating AI-driven personalisation algorithms that deliver tailored recommendations and curated content based on individual preferences and purchase history.

Furthermore, the integration of social commerce with emerging technologies such as voice assistants and smart devices will provide new avenues for luxury brands to engage with their customers.

With the rise of social media influencers and micro-influencers, luxury brands will continue to forge strategic partnerships to expand their reach and connect with niche audiences.

Overall, the future of social commerce for luxury brands promises enhanced personalisation, immersive experiences, and greater connectivity, creating a seamless blend of exclusivity and convenience for their discerning clientele.

Social commerce statistics

There are 4.9 billion social media users
The social commerce market size is expected to grow, with Forecasts suggest that social commerce sales will reach $2.9 trillion worldwide by 2026
87% of online shoppers use social media while making shopping decisions
Social commerce represents 10% of eCommerce sales today
68% of consumers have made at least one purchase directly from social media

Luxury brands using social commerce

Many luxury brands have recognised the potential of luxury social selling, and have successfully integrated it into their marketing strategies.

Here are a few social commerce examples from familiar luxury brands that have embraced this area of online retail:

Gucci – Gucci has been at the forefront of social commerce, utilising platforms like Instagram and WeChat to engage with its global audience. The brand leverages shoppable posts, interactive storytelling, and virtual try-on experiences to showcase its products and create a seamless shopping experience.
Louis Vuitton – Louis Vuitton has embraced social commerce through collaborations with influencers and celebrities, allowing them to showcase and promote their luxury products. They also use live streaming events and interactive campaigns to engage their audience and generate excitement around their collections.
Burberry – Burberry has partnered with popular platforms like TikTok and Snapchat. They have leveraged augmented reality (AR) filters and shoppable ads to create immersive experiences for their customers, enabling them to virtually try on products and make purchases directly through social media platforms.
Dior – Dior has effectively utilised Instagram and WeChat to engage with their audience. They have incorporated user-generated content (UGC), influencer collaborations, and behind-the-scenes content to create a sense of exclusivity and authenticity, enhancing the overall shopping experience.
Chanel – Chanel has embraced social commerce by integrating eCommerce features into its Instagram profile, enabling users to shop directly from their posts. The brand also leverages social media influencers and live-streaming events to engage with their audience and provide personalised experiences.