Luxury Fashion: Marketing Luxury Handmade Products In Online And Offline Channels- A Study On European Brands
Aug 07, 2023 | Vedang Rastogi
This research report entails a comprehensive overview of sustainable marketing, focusing on luxury and semi-luxury products. It discusses the different types of sustainable marketing strategies employed both online and offline and explores effective ways to market handmade semi-luxury products through various online mediums while highlighting cost-effective methods for offline marketing. Furthermore, the report examines contemporary approaches to marketing products when faced with limited financial and human resources. It presents the example of HeritageCraft, which successfully implemented the Segmentation, Targeting, and Positioning (STP) model through effective campaigns. Additionally, a case study on Aiayu demonstrates the successful implementation of the Attention, Interest, Desire, and Action (AIDA) model. Moreover, the paper includes a SWOT analysis of the European sector for handmade products, providing insights into its strengths, weaknesses, opportunities, and threats. Finally, a case study on Etsy is presented, illustrating how the platform empowers artisans and promotes sustainable handmade products. In summary, this research paper delves into the world of sustainable marketing.
Contents
About Sustainable marketing
Types of sustainable marketing for Luxury and Semi-Luxury Products
Marketing Online and Offline
Ways of Marketing Handmade Semi-Luxury Products in the Online Mediums
Ways of Marketing Handmade Semi-Luxury Products Offline in a cost-effective manner
Contemporary Ways of Marketing Products with Limited Financial and Human Resources
Discussing the example of HeritageCraft and how it implemented the STP Model Successfully by the use of effective campaigns
Case study on Aiayu and its Successful implementation of AIDA Model
SWOT analysis of the European sector for Handmade products
Case Study on Etsy: Empowering Artisans and Promoting Sustainable Handmade Products
Introduction
The purpose of this research report is to examine the challenges and strategies related to scaling luxury fashion products in both online and offline channels. Specifically, the report focuses on the difficulties of marketing handmade products online and how companies are working towards keeping the expenses associated with offline marketing low. The research aims to explore different strategies for selling luxury, sustainable, and handcrafted products, with a particular emphasis on European brands. The report utilises frameworks such as the Segmentation, Targeting, and Positioning (STP) model, the Attention, Interest, Desire, and Action (AIDA) model, a SWOT analysis of the European handmade product sector, and a focus on family-run businesses to provide insights and recommendations. Moreover, it analyses contemporary approaches to marketing these products with limited financial and human resources.
The problem statement addressed in this research revolves around the challenges faced by luxury fashion brands in effectively marketing their products both in online and offline channels, while considering the factors that online marketing generally is difficult and does not yield great results and offline marketing can be expensive. Moreover, the focus on sustainability and handcrafted product characteristics further adds complexity to the marketing process. The research aims to identify different strategies for online and offline marketing that are cost-effective and considerate of limited human capital. Additionally, the study focuses on European brands, highlighting their unique positioning in the market, and specifically examines family-run businesses.
The significance of this research lies in its potential to offer valuable insights and recommendations to semi-luxury fashion brands seeking to scale their products in the online and offline mediums. By exploring sustainable marketing practices and examining successful case studies, the research aims to provide practical strategies for overcoming the challenges associated with limited resources. The findings of this study will contribute to the existing knowledge in the field of sustainable marketing for luxury and semi-luxury products, particularly within the European context.
A) About Sustainable Marketing
Sustainable luxury product marketing is the process of promoting and selling luxury products in a way that is environmentally and socially responsible. It is the strategic planning and implementation of marketing activities for luxury goods and services that are produced and marketed in a sustainable and environmentally responsible manner, involving integration of sustainability principles into the entire marketing process, from product development and sourcing to communication and consumer engagement. [1]
In today's world, sustainability is no longer a business choice, rather a system which is being readily adopted worldwide by all firms. Climate change has become a major global concern in recent years, and people are increasingly becoming more and more aware of the environmental impact of their daily choices, such as the clothes they buy, the cars they drive, and the energy they use. Due to this, almost all brands in most of the industries are moving towards adopting more sustainable techniques in all domains related to their products by implementing various sustainability measures.
Even Luxury brands, which have a typically substantial impact on the environment due to their production processes, sourcing practices, and materials are changing their accustomed practices and moving forward to Contribute to a Sustainable Future as they hold influence and impact on consumer behaviour. [5]
Sustainability has become a key differentiator among brands competing with each other leading to eventually being an important driver of purchase decisions. This is even proved by recent case studies and numerous surveys including a recent study by the Boston Consulting Group which found that the global market for sustainable luxury goods is expected to reach $3.7 billion by 2026, a survey conducted by the Luxury Institute which found that 72% of luxury consumers are willing to pay more for sustainable products.
Human impact on the world is hard to ignore, although not until recently has it begun to influence consumer behaviour at scale.
B) Types of sustainable marketing for Luxury and Semi-Luxury Products:
In the marketing domain, sustainability has become an essential aspect for businesses that seek to prioritise ethical and environmental responsibility. When it comes to promoting handmade products, sustainable marketing strategies hold particular significance as these products are synonymous with craftsmanship, individuality, and cultural heritage which makes them an ideal focus for sustainable marketing efforts. By emphasising the eco-friendly practices, social impact, and unique qualities of handmade products, businesses can appeal to conscious consumers who value authenticity, ethical production methods, and sustainable consumption. In this context, the following are some strategies that aim to bridge the gap with the target audience, highlighting the value of handmade craftsmanship, and contribute to a more sustainable future:
1. Green Marketing highlights the environmental benefits of a product or service by communicating the sustainable attributes of the product, such as reduced carbon footprint, use of renewable materials, energy efficiency, or eco-friendly manufacturing processes.[6,22]
2. Cause-Related Marketing is a strategy that aims to demonstrate a brand's commitment to making a positive impact on society and the planet. Through partnerships with nonprofit organisations or initiatives, businesses can promote their products while simultaneously supporting a cause that resonates with their target audience.
3. Sustainable Packaging Marketing emphasises the use of eco-friendly packaging materials, minimal packaging waste, and packaging designs that promote recyclability or reuse. [22]
4. Personalised and Responsible Consumption Marketing encourages consumers to make informed decisions, prioritise quality over quantity, and choose products or services that align with their values.
C) Marketing Online and Offline:
In the world of fashion, semi-luxury brands occupy a unique space, offering products that combine quality, craftsmanship, and affordability which helps these brands to bridge the gap between high-end luxury and mass-market fashion. They provide high-quality products with a touch of luxury, while still being accessible to a wider audience. They focus on delivering unique designs, and superior materials, often at a more affordable price point. Scaling these products can be a challenge, especially when considering both online and offline channels.
D) Ways of Marketing Handmade Semi-Luxury Products in the Online Mediums:
When it comes to marketing semi-luxury fashion online, though it helps in reaching a global audience, several challenges arise like Maintaining the perceptional aura of exclusivity around the products as they are easily accessible to a wider audience, showcasing the Quality and Craftsmanship like feeling of the fabric, Building Trust and Overcoming Scepticism about the authenticity of products, differentiating themselves from both high-end luxury brands and fast fashion retailers and also Providing Personalised Customer Experience which is difficult owing to the absence of in-person interactions which is sometimes a crucial part in order to build customer loyalty. Here we will be discussing several ways in which the companies have overcome these challenges at a substantially low cost with examples.
1. Limited Edition Releases help in generating a sense of exclusivity and scarcity around the products. By offering unique or limited quantities, brands create a desire for customers to purchase the product before it runs out.
MaisonCléo (France) offers limited edition handmade clothing collections, produced in small quantities by a mother-daughter team, that often feature special prints or designs. They create anticipation by announcing the launch date in advance and highlighting the limited availability of the collection, driving customers to make quick purchases. [23,24]
2. Storytelling and Brand Identity helps the customers connect with the products of the company on a deeper level. By telling the story about various aspects of the company like how the brand came to be, its roots, and the people behind it, providing insights into the brand's sources of inspiration, whether it be art, nature, or cultural influences, and emphasising on the dedication and skill involved in creating their products, helps companies convey their values, heritage, inspiration, and vision, allowing customers to align themselves with the brand on a personal and emotional level.
Roksanda (UK) , a brand by Roksanda Ilincic, has the story of its founder floating across the internet and her inspiration and passion for creating elegant yet vibrant designs, through which she creates an emotional connection with the customers who appreciate her unique artistic vision and identify with her design philosophy. [25]
3. Detailed Product descriptions play a crucial role in providing customers with comprehensive information about the product. The companies incorporate evocative language and vivid imagery to paint a picture in the customer's mind, helping them visualise the product's look, feel, and overall aesthetic. They are often seen to describe the materials, the intricate manufacturing techniques, the attention to detail involved in the production process, the special characteristics that make their products stand out in the market and their commitment to sustainable sourcing among a few to instil confidence in customers about the excellence, uniqueness, superior quality and value of their offerings.
Acne Studios (Sweden) places a strong emphasis on detailed product description including information about the materials used, tailoring techniques, and design elements. They also showcase close-up images that highlight the quality of their minimalist designs, artistry and craftsmanship behind its products.[26]
4. Customer Reviews and Testimonials build trust, provide social proof and reassurance to potential buyers that the products are of high quality and that previous customers have had positive experiences. Companies also encourage customers to share their own photos, reviews, and experiences with their products on social media leading to user-generated content that demonstrates the authenticity and versatility of the products, creating a sense of community around the brand.
5. Virtual Showrooms and Events showcase the products in an immersive way through high-quality imagery, videos, and 360-degree product views, allowing customers to experience the craftsmanship, materials, and design details digitally in an exemplary manner. The brands showcase their latest collections, engage with customers globally to expand their customer base and increase brand visibility. To enhance customer engagement, Virtual Showrooms and Events often include real-time interactions in the form of live chat functionalities, virtual consultations, or Q&A sessions where customers can ask questions, seek styling advice, or gain insights into the brand's creative process.
6. Emphasising on the Sustainable and Ethical Practices that the brand follows demonstrates their commitment to social and environmental responsibility. This involves highlighting their usage of eco-friendly materials, ethical production processes, and initiatives that contribute to a better world. Brands emphasise transparency by providing information about their supply chains and production processes and they partner up with certifications and initiatives such as the Global Organic Textile Standard (GOTS). They also showcase their following of the principle of Circular Economy and Upcycling by promoting product longevity, repair services, and upcycling initiatives of creating new products from recycled or upcycled materials.
Maiyet, a UK-based brand, prioritises environmentally friendly materials, fair trade, and transparency throughout their supply chain. They collaborate with artisans globally to support the local communities and preserve traditional craftsmanship. By prioritising sustainability and ethics, Maiyet appeals to conscious consumers, contributing to a more sustainable and equitable fashion industry.[45]
7. Providing Exceptional Customer Service involves providing personalised, attentive, and proactive support to customers throughout their purchasing journey by promptly addressing customer inquiries, providing assistance, and going the extra mile to ensure that customers feel valued and the brand not only meets customer needs but even exceeds expectations . By prioritising exceptional customer service, brands can enhance the overall customer experience, foster loyalty, differentiate themselves in a competitive market and build a long-lasting relationship.
Net-a-Porter, an online luxury fashion retailer based in Europe is known for its exceptional customer service. They provide personalised product suggestions, curated edits, and style guides based on customers' preferences and purchase history, enabling customers to discover new items that align with their individual tastes and preferences. They prioritise round-the-clock customer support through multiple communication channels that assist customers with any concerns or issues promptly. They provide quick and efficient order fulfilment through express shipping and same-day delivery with transparent tracking information. Net-a-Porter's personal styling services, staffed by experienced stylists assist customers in building their wardrobes and finding the perfect outfits.Net-a-Porter goes beyond being a mere online retailer by providing rich content and editorial features, including fashion editorials, trend reports, and style inspiration, keep customers updated with the latest fashion trends.[46]
Ways of Marketing Handmade Semi-Luxury Products Offline in a cost-effective manner:
In today's digital age, online marketing has become a prominent tool for businesses to promote their products and reach a wider audience. However, offline marketing strategies still hold great value and have a crucial role in creating brand awareness, building personal connections with customers, and showcasing the uniqueness and craftsmanship of products. While online marketing is undoubtedly important, offline strategies provide a tangible experience that can leave a lasting impression on potential customers. Further on, we will be discussing cost effective strategies used by European companies to market their products.
1. The Power of Personal Networking- One of the most powerful ways to market products in the physical space is through personal networking. Attending industry-related events, conferences, trade shows, Local Events and Exhibitions allows businesses to connect with potential customers, suppliers, and distributors. Participating in such events provides an opportunity to showcase their product line to a targeted audience by setting up an attractive booth or display to attract attention, engage in meaningful conversations, share product stories and exchange contact information.
2. Cross-promotions is a marketing strategy where two or more brands collaborate to promote each other's products or services. This helps to reach a wider audience as when the two brands collaborate, they are essentially sharing their customer bases with each other, which leads to increased sales for both brands. Cross-promotion also helps to build brand awareness because it creates a positive association between the brands leading to increased sales for both in the long run and save on marketing costs.
They offer exclusive discounts or bundles for cross-purchases, featuring and promoting each other's products on their online platforms, social media, and newsletters. By leveraging each other's customer base and complementary offerings, they expand their reach, strengthen their brand presence, and create a mutually beneficial relationship that provides a more holistic overall customer experience.[47]
3. Collaborating with Local Influencers and Bloggers who have a relevant audience becomes a powerful marketing strategy for brands to reach their target audience and build a strong online presence. They can create content featuring the products and share it with their followers, helping brands tap into their influence, credibility, and connection with the local community and increase their brand visibility, attracting new customers.
MaisonCléo (France) actively collaborates with local influencers in their content creation process for lookbook photoshoots, fashion films, or even designing limited-edition pieces. They create an influencer-friendly collection that is designed to appeal to the fashion-conscious and socially responsible consumer. This collection has helped to attract influencers and bloggers who are interested in promoting sustainable and ethical fashion.
MaisonCléo even collaborated with Net-a-Porter, a luxury online retailer, to sell their sustainable clothing. This collaboration has helped to increase the brand's visibility and reach a wider audience. [24]
4. Pop-up shops offer a temporary retail experience that generates excitement and exclusivity around a companies’ products, creating a sense of urgency to purchase them. In this strategy, companies look for unconventional, high-traffic yet cost-effective venues such as coffee shops, community centres, or shared spaces to host these shops.
Wanderlust Accessories offers handmade bohemian-inspired accessories, it organises pop-up shops in beachside locations during the summer season. They set up their pop-up shop in vibrant beach clubs, coastal resorts, or beach festivals, where their target audience of vacationers and beachgoers can discover and purchase their unique accessories.[27]
5. Hosting product demonstrations and DIY workshops is an excellent way to showcase the craftsmanship and value of handmade luxury products. This approach not only educates customers about the intricacies of the product but also offers an opportunity to collect valuable feedback and insights. It allows businesses to engage with potential customers and position themselves as an authority in your niche. [48]
6. Utilising Local Media and Press Print such as local newspapers, magazines, and relevant publications provide access to businesses to reach out to a targeted audience who appreciates the craftsmanship and elegance of their products and by giving a compelling angle or unique selling point to grab their attention, brands can even secure free publicity.
7. Corporate Gifting and Partnerships present an avenue for businesses to collaborate with companies that align with their brand values. By strategically selecting and offering exclusive and personalised products as corporate gifts, the business leaves a lasting impression on potential partners and clients, forging meaningful relationships. This approach helps in enhancing the brands reputation, expand its network, and increase brand visibility, ultimately leading to long-term growth and success. For example, they can collaborate with high-end spas, luxury hotels, and wellness retreats, creating exclusive gift sets to be presented there, increasing their brand visibility and credibility, positioning themselves as a top choice for unique handcrafted products in the luxury market. [19]
8. Leveraging Word-of-Mouth Referrals: Word-of-mouth marketing remains one of the most powerful and cost-effective strategies for promoting any product. By ensuring exceptional product quality, delivering outstanding customer service, and fostering strong relationships with customers, businesses can encourage positive word-of-mouth referrals as satisfied customers not only become repeat buyers but also share their experiences with other people, thus further expanding the reach of the brand. Companies can even offer incentives or referral programs to existing customers to encourage them to refer your products to others.
For instance, La Dolce Vita, a brand specialising in handmade artisanal chocolates, implements a referral program wherein they provide each customer with a stack of personalised referral cards having a unique discount code. Whenever a customer refers to a friend who makes a purchase using the referral code, both the customer and the friend receive a discount on their next order. They even provide incentives such as free samples to customers who refer their friends and family. This encourages customers to share their love for La Dolce Vita chocolates with others, generating positive word-of-mouth and new customer acquisitions.[16]
While online marketing has its advantages, offline marketing techniques remain indispensable for promoting handmade semi-luxury products. By employing a combination of these strategies, many companies have successfully marketed their products while building a deep connection with their target audience and establishing a strong brand presence.
H) Contemporary Ways of Marketing Products with Limited Financial and Human Resources:
1. Leveraging automation and technology is a key strategy for businesses aiming to maximise their efforts while operating with limited human capital and low financial resources. By harnessing the power of innovative tools and software solutions, brands can streamline their marketing processes, enhance efficiency, and ultimately achieve better results.[8] The following insights shed light on how brands can effectively leverage automation and technology:
Social Media Management Tools: simplify the process of managing multiple social media platforms. These tools allow brands to schedule posts in advance, monitor social media mentions and interactions, analyse performance metrics, and engage with their audience more efficiently. A well-known social media management tool is Hootsuite which gives access to the brands to do all that is mentioned above and manage multiple social media accounts from a single dashboard. This enables brands to maintain an active and consistent online presence, optimise content distribution, and track the impact of their social media efforts.
Chatbots and AI-Powered Customer Support: their implementation has 24/7 availability and works in real-time to assist customers, handle frequently asked questions and provide product recommendations. These systems significantly enhance customer service while reducing the need for human resources. With advancements in natural language processing and machine learning, chatbots will be able to deliver personalised experiences and resolve common and even more complex customer queries. Ada, Drift and Chatfeul can be some of platforms that offer AI-powered chatbot solutions to various brands.[18]
Data Analytics and Reporting: Technology-driven tools enable brands to gather, analyse, and interpret vast amounts of data. By leveraging automation in data analytics, businesses can gain valuable insights into consumer behaviour, market trends, and campaign performance. This data-driven approach empowers brands to make informed decisions and refine their marketing strategies for optimal results. Some of the most used platforms include Google Analytics, IBM Cognos Analytics, Power BI by Microsoft, and Adobe Analytics.[15]
Customer Relationship Management (CRM): Automation tools integrated with CRM systems can enhance customer relationship management by automating various tasks, such as lead scoring, follow-ups, customer support and it allows brands to centralise customer data, and track interactions. Brands use CRM systems to segment their customer base, personalise communication, and automate email marketing campaigns. This not only saves time and effort but also ensures that customers receive relevant messages timely .By using CRM, brands ensure that they maintain strong and personalised relationships with their customers throughout their journey, fostering loyalty and long-term success. Example: Salesforce allows brands to manage customer data, track interactions, and automate marketing processes such as email campaigns and lead nurturing.
Outsourcing and Freelancing: Brands can consider outsourcing certain tasks or working with freelancers to access specialised expertise without the need for full-time employees. Outsourcing functions like graphic design, content writing, or social media management can reduce costs and provide flexibility while maintaining high-quality deliverables. Many startups and small businesses utilise platforms like Upwork or Freelancer.com to outsource tasks. By tapping into the expertise of freelancers, these businesses can access high-quality work while keeping costs in check and maintaining flexibility in their operations.
By embracing automation and technology, brands can unlock new opportunities for growth and efficiency in their marketing endeavors.
2. Engaging in Guerrilla Marketing Tactics is a creative and cost-effective strategy for brands with limited human capital and low expenses. Guerrilla marketing involves unconventional and out-of-the-box approaches to grab attention and create buzz around a brand or its offerings.[7] Here are further insights into how brands can leverage guerrilla marketing tactics:
Street Art and Graffiti: Brands can collaborate with local artists to create eye-catching street art or graffiti that incorporates their brand message. This unconventional form of advertising generates curiosity and intrigue among passersby, sparking conversations and increasing brand awareness.
Stunts and Flash Mobs: Organising attention-grabbing stunts or flash mobs can be an effective way to engage with the target audience in a memorable and interactive manner. By surprising and delighting people in unexpected places, brands can create a buzzworthy experience that generates word-of-mouth marketing and social media buzz.
Street Team Marketing: Deploying street teams in high-traffic areas allows brands to directly interact with potential customers. Street team members can distribute samples, promotional materials, or engage in conversation to create a personal connection with the target audience. This grassroots approach can help build brand loyalty and generate interest in a cost-effective way. Red Bull is one such brand known for its street team marketing efforts. They deploy brand ambassadors known as "Red Bull Wings Team" at various events, festivals, and high-traffic areas.
Guerilla Advertising Installations: Unconventional advertising installations placed in unexpected locations can create a memorable brand experience. For example, using 3D art, interactive installations, or unique signage can capture attention and generate buzz without requiring a large budget. For instance, in 2014, IKEA launched a guerrilla marketing campaign in Paris, France where they placed fully furnished and decorated shelters resembling rooms from their catalogue. Commuters could step into these shelters, giving them a firsthand experience of IKEA's products and inspiring them to visit the nearest store. This clever and immersive installation created a buzz and generated interest in IKEA's offerings.[16]
I) Discussing the example of HeritageCraft and how it implemented the STP Model Successfully by the use of effective campaigns:
HeritageCraft is a European brand that creates handmade, sustainable homewares and accessories. The brand works with small, family-run workshops in Europe to ensure that their products are made to the highest quality standards.The brand's products are sold online and in select retailers around the world. In 2021, HeritageCraft's revenue was €1 million. They have become a prominent player in the realm of traditional craftsmanship and have successfully implemented the STP Model to effectively connect with its target audience. Their STP model in detail:
Segmentation
Demographic: middle to high-income conscious consumers, people who are concerned about the environment, people who are inclined towards making ethical purchases. Geographically, Northern Europe tends to be more conscious about sustainability.
Psychographic: people who appreciate craftsmanship, value their timeless designs, want to show their commitment towards the environment and at the same time, flaunt the designs as a status symbol.
Behavioral: people who are likely to shop online and who are willing to pay a premium for sustainable products. The brand's products are often sold through its own website and through select retailers around the world.
Campaigns implemented by HeritageCraft:
Understanding the importance of catering to different demographic groups, HeritageCraft launched a line of products designed by millennials, featuring contemporary designs while still showcasing traditional craftsmanship. Additionally, they introduced limited-edition luxury pieces aimed at high-net-worth individuals who value exclusivity and are willing to invest in one-of-a-kind artisanal creations.
HeritageCraft recognized the values and interests of their target audience and actively engaged with the customers who prioritise sustainability and ethical practices by highlighting their use of ethically sourced materials, eco-friendly production methods, and support for local artisans. This approach has resonated well with environmentally conscious consumers who appreciate the craftsmanship and the positive impact their purchase can have on the artisans and communities involved.
The brand has developed a loyal customer base of art enthusiasts and collectors who are offered exclusive limited-edition releases, personalised consultations with artisans, and invitations to special events and exhibitions as a reward and to engage with these customers. By recognizing and nurturing this segment's passion for traditional craftsmanship, HeritageCraft has cultivated a community of dedicated supporters who eagerly anticipate their latest offerings and actively promote the brand to others. [11]
Targeting
HeritageCraft, in order to engage with the right audience, focuses on identifying and reaching out to the specific customer segments that are most likely to resonate with their offerings, thus creating tailored marketing campaigns that engage and connect with their target audience. By targeting the right audience, they maximise the impact of their marketing efforts, thus optimising resource allocation and fostering meaningful connections with their customers, ultimately driving customer engagement and loyalty.[9]
a) Customer Profiling: conducts an in-depth customer profiling to gain a comprehensive understanding of their target audience. They analyse demographic data, consumer behavioural patterns, and psychographic insights to create detailed customer profiles which encompasses information such as age, gender, income level, lifestyle, values, interests, and purchasing behaviours. With the help of this, HeritageCraft visualises their ideal customers, understands their motivations, and crafts targeted marketing strategies that address their specific needs and desires.
b) Tailored Messaging and Offers: HeritageCraft crafts tailored messaging and offers that resonate with each segment they want to target. They leverage the insights gained from customer profiling to create compelling narratives that align with the values, aspirations, and preferences of their target audience.
For example, when targeting a segment of environmentally conscious consumers, HeritageCraft emphasise their sustainable sourcing practices and use of eco-friendly materials in their messaging and offer exclusive promotions for limited-edition collections that showcase their commitment to ethical craftsmanship.
c) Channel Selection: They consider the preferred communication channels and media consumption habits of each segment, for instance, if targeting a segment of tech-savvy millennials, HeritageCraft utilises social media platforms which have a strong presence with over 100,000 followers on Instagram and influencer partnerships to showcase their products and engage with this digitally connected audience. Alternatively, when targeting an older segment that appreciates traditional media, HeritageCraft utilises print advertisements in magazines or collaborates with renowned artisans to gain credibility and trust. They even connect with potential customers by showcasing their products in a variety of events, such as trade shows and home shows.[10]
Positioning
By crafting a unique identity, HeritageCraft distinguishes itself from competitors and establishes a strong emotional connection with their target audience. HeritageCraft establishes itself as a trusted brand that embodies authenticity, quality, sustainability and artistry that is made to last. The brand's tagline, "HeritageCraft: Timeless pieces for your home," reflects this positioning of their products being high-quality and timeless.
HeritageCraft positions itself as a purveyor of cultural heritage by highlighting the historical significance and cultural stories woven into each creation, allowing customers to experience the authenticity and cultural depth of their offerings. By showcasing cultural heritage, they position themselves as a bridge between the past and the present, enabling customers to connect with their own heritage or explore new cultural experiences through their artisanal creations.
They pride themselves on preserving ancient techniques and collaborating with skilled artisans who have inherited generations of craftsmanship knowledge. By highlighting their dedication to excellence and the meticulous craftsmanship behind each product, HeritageCraft positions itself as a brand that values quality, authenticity, and artistry. [13]
HeritageCraft positions itself as a provider of unique and exclusive products. By understanding the appeal of owning one-of-a-kind creations that reflect individuality and personal taste, HeritageCraft offers limited-edition pieces, customised options, and collaborations with renowned artists.This positions their products as rare and distinctive and creates a sense of desirability and exclusivity among their target audience, evoking a feeling of privilege and prestige, appealing to customers who value owning something truly unique exceptional and exclusive. [12]
HeritageCraft strikes a balance between tradition and modernity, positioning itself as a brand that seamlessly blends timeless craftsmanship with contemporary design sensibilities which enables them to cater to diverse tastes and preferences. They reinterpret traditional techniques and motifs to create products that cater to modern aesthetic preferences.
With the successful implementation of these marketing strategies, HeritageCraft has carved a niche for themselves, captivating loyal customers who appreciate the beauty, authenticity, and cultural heritage infused in their creations. They have established their unique identity in the market by showcasing cultural heritage, emphasising superior craftsmanship, promoting exclusivity, and embracing a harmonious blend of tradition and modernity and have set themselves apart from the competition.
H) Case study on Aiayu and its Successful implementation of AIDA Model:
Aiayu is a Danish brand established in 2005 and has been successful in capturing the attention of conscious consumers seeking sustainable luxury with its exceptional handmade knitwear and textiles. The brand's core philosophy revolves around the use of natural, organic materials and traditional craftsmanship. By collaborating with skilled artisans in Bolivia, Aiayu ensures fair wages and safe working conditions while preserving the rich heritage of their craft. They even minimise their ecological footprint through low-impact dyeing methods, responsible waste management, and energy-efficient production processes, with each piece being carefully crafted, resulting in unique garments that combine effortless style, comfort, and longevity. Moving on, we will be delving into how they implemented the AIDA model successfully to market themselves.
These strategies help us understand how Aiayu implements the AIDA model, ensuring attention-grabbing marketing, generating interest through storytelling and education, creating desire for their products through visual appeal and exclusivity, and motivating action through a seamless and customer-centric shopping experience. This comprehensive approach ensures that Aiayu engages consumers at each stage of their decision-making process and fosters long-term relationships built on trust and shared values.[30,31,32]
I) SWOT analysis of the European sector for Handmade products:
J) Case Study on Etsy: Empowering Artisans and Promoting Sustainable Handmade Products
Etsy is an e-commerce platform that has revolutionised the way handmade products are bought and sold.[37] It provides a global marketplace for artisans and creatives to showcase and sell their unique products. Etsy also allows the sale of vintage items, enabling sellers to showcase curated collections of unique, one-of-a-kind pieces from the past. It is a low barrier to entry in the marketplace, allowing individuals to start selling with minimal upfront costs. The platform fosters a supportive community through forums and social media, allowing sellers to connect and buyers to engage directly with sellers. Etsy offers a user-friendly interface, marketing tools, and analytics to help sellers optimise their shops and reach a wider audience.
Unique Value Proposition: Etsy's key differentiator lies in its commitment to supporting small-scale businesses and independent artists. Unlike larger e-commerce platforms, Etsy focuses on providing a personalised experience, offering customers products that cannot be easily found elsewhere. By positioning itself as a platform for creative expression and supporting the "Shop Local" movement, Etsy tapped into a niche market with immense potential.
Tailored Recommendations and Email Marketing: Etsy's data-driven approach allows them to personalise the shopping experience for each customer.[38] Through algorithms that analyse browsing history and purchase patterns, Etsy presents relevant product recommendations to users. Furthermore, their targeted email marketing campaigns keep customers informed about new arrivals, discounts, and promotions, fostering a sense of exclusivity and loyalty.
Harnessing Influencer Marketing: To expand its reach and tap into new audiences, Etsy collaborates with influencers who align with its brand values. Influencers share their experiences with Etsy products, highlight unique finds, and showcase the diversity of handmade and vintage items available on the platform. These collaborations help Etsy expand its customer base, attract new sellers, and reinforce its position as a trusted marketplace for unique and quality products. By leveraging the influence and credibility of these individuals, Etsy exposes its products to a wider demographic and garners increased attention.[42]
Embracing Social Media Marketing: Etsy maintains an active presence on various social media platforms, including Instagram, Pinterest, and Facebook. Through these channels, Etsy effectively engages its target audience and increases brand awareness by showcasing captivating product images, behind-the-scenes glimpses of artisans at work, and customer success stories. Social media platforms provide Etsy with a powerful tool to engage with its audience, share user-generated content, and amplify the reach of its sellers. The platforms serve as a virtual storefront, enticing users to explore and make purchases.[41]
Community Building: Etsy's marketing model heavily emphasises on the importance of fostering connections between buyers and sellers, as well as among artisans themselves.[37] They facilitate communication and collaboration through forums, teams, and virtual events. These community-building initiatives create a sense of belonging and encourage sellers to support one another, share insights, and exchange ideas. By nurturing a supportive community, Etsy strengthens its brand, increases customer loyalty, fosters long-term relationships between sellers and buyers and has created a loyal customer base that keeps coming back for its one-of-a-kind offerings.
Search Engine Optimization (SEO): Etsy's focus on search engine optimization (SEO) has been integral to its visibility and organic traffic.[39] The company optimises its website and product listings through effective SEO practices, including keyword optimization, meta tags, and descriptive titles and descriptions. Etsy conducts comprehensive keyword research to target niche-specific long-tail keywords, strategically incorporating them into product content. By implementing these strategies, Etsy ensures that its products are easily discoverable, attracting organic traffic and potential customers to its platform.[40]
This case study delves into the marketing strategies employed by Etsy, providing real-life examples of how they implemented these strategies to propel their growth.
By understanding the power of community, differentiation, SEO, social media, and personalization, businesses can unlock their full potential and establish a strong online presence. It is crucial to continuously analyse market trends, adapt to changing consumer preferences, and evolve marketing strategies accordingly. By embracing innovation, staying true to core values, and consistently delivering exceptional products and experiences, businesses can aim to leave their competitors behind and thrive in the ever-evolving digital landscape.
References
Sustainable Fashion Marketing: How To Get It Right in 8 Steps - Green Business Bureau
https://www.colourgraphics.com/blog/11-budget-friendly-offline-marketing-techniques/
https://holrmagazine.com/the-impact-of-luxury-fashion-on-the-environment/
https://thestrategystory.com/blog/guerrilla-marketing-strategy-tactics-and-examples/
https://heritagecrafts.org.uk/taking-heritage-crafts-international/
https://heritagecrafts.org.uk/rankin-captures-heritage-crafts/
https://heritagecrafts.org.uk/buy-less-buy-better-buy-handmade/
https://www.sas.com/en_us/insights/marketing/marketing-analytics.html
https://www.teakandtwine.com/blog/luxury-corporate-gift-ideas
https://www.shopivo.com/blog/marketing/the-what-why-and-how-of-guerrilla-marketing/
https://maisoncleo.com/march-2022-premiere-fois-ss22-pfw-runway-show/
https://creativeentrepreneurs.co/journal/founder-files-roksanda-phenomenal-fashion-brand/
https://professionals.muuto.com/content/designer/aiayu-designer-page/
https://www.weforum.org/agenda/2017/03/artesans-skilled-craftsmanship-equality-nest
https://www.cbi.eu/market-information/apparel/sustainable-materials/market-potential
Etsy Acquires Blackbird Technologies to Enhance Search Capabilities
Etsy Provides Long-Term Strategy and Five-Year Financial Targets at Inaugural Investor Day
https://www.etsy.com/in-en/seller-handbook/article/33805070758?ref=handbook
https://influencermarketinghub.com/etsy-influencer-marketing/
How does Etsy make money | Business Model & Marketing Strategy
https://www.indeed.com/career-advice/career-development/cross-promotion-ideas
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