Digital Marketing Strategies for Luxury Brands in the UAE Market

This project explores the digital opportunities and influences on the online buying of luxury brands in the UAE. It identifies factors impacting customer and retailer decisions, examines the extent of internet influence on customer behavior, and assesses the effectiveness of digital tools for luxury brand engagement. The research includes a market overview of the UAE, a literature review covering culture, consumer behavior, and e-retail trends. The methodology incorporates both qualitative and quantitative data collection through questionnaires and interviews. Findings analyze customer demographics, shopping styles, and the impact of social media and online advertising. The project concludes with recommendations for luxury brands to enhance their digital marketing strategies, including leveraging social media, improving customer experience, and maintaining brand exclusivity in the online environment. The report also addresses the challenges of implementing advanced technologies and the importance of balancing tradition with modernism in the luxury market.

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AGENDA
I. Introduction
II. Research Objectives &
Scope
III.Market overview : U.A.E
IV.Literature Review
V. Research Methodology
VI.Analysis & Findings
VII.Conclusions &
Recommendations
VIII.Research Limitations
IX.Progress on Drafting
Final ReportFinal Group Project on 23rd of November, 2018
869816869816

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I. Introduction
Final Group Project Presentation on 23rd of
November, 2018
Luxury is a culture, a
philosophy and an identity
which requires deep
considerations and
planning before application
of e-business practices.

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II. Research Objectives & Scope
(Executive Summary)
1. •In overall, to explore on digital opportunities or influences for online buying of luxury brands in the U.A.E.
2. •To identify the factors on both general customer and retailer’s luxury brands buying decision in the U.A.E.
3. •To identify, to what extent, internet/online will be able to influence customers behaviour in luxury brands buying decisions in the U.A.E.
4. •To identify on effectiveness for luxury brand’s successful engagement with digital/online/e-business tools
Final Group Project Presentation on 23rd of
November, 2018

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III. Market overview: U.A.E.
Final Group Project Presentation on 23rd of
November, 2018
Source: Euromonitor
* Sales of luxury goods by category: % value growth 2012 ~ 2017*
Online sales platforms adopted by major luxury retailers in
U.A.E. in the last few years
Internet users in U.A.E are growing rapidly and VAT
introduction effective in 2018 January was significant

Page 6Final Group Project Presentation on 23rd of
November, 2018
IV. 1 Literature Review: Overall
U.A.E. Culture
& Luxury
consumption
Demographics
Cultural
Dynamics
Luxury brands
& the Internet
Website quality
Vendor/
Product
Characteristics
U.A.E.

Page 7Final Group Project Presentation on 23rd of
November, 2018
IV. 2 Literature Review The U.A.E & Luxury
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Page 8Final Group Project Presentation on 23rd of
November, 2018
IV. 3 Literature Review: The U.A.E. & e-retail
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Souq.com, Tejari.com, burjmall.com have successfully launched to fit
the needs of online consumers in the U.A.E. online market.

Page 9Final Group Project Presentation on 23rd of
November, 2018
IV. 4 Literature Review: The U.A.E. & e-retail
Source: Euro monitor and McKinsey
Luxury brands and the Internet: It is essential for luxury brands to
understand the scope and extent of the digital world in order to
create an online luxury experience. And also important to balance
exclusivity with accessibility to profit from internet consumers.

Literature Review
• Luxury is neither a product, an object, a service nor
is it a concept or a lifestyle. It is an identity, a
philosophy and a culture (Okonkwo, 2009).
• Six Criterion of Luxury
• Qualitative hedonistic experience
• Price far exceeds the functional value
• Tied to heritage and culture
• Restricted and controlled distribution
• Accompanied by personalized services
• Represents a social marker
• Associated with a sense of privledge
LUXURY
:

LUXURY FIRMS AND ITS EVIRONMENT:
•Implementation IT in the luxury industry has been particularly slow ((Bjørn-
Andersen and Hansen, 2011; Okonkwo, 2009).
•Internet significantly have helped industries to achieve globalization
•Internet have revolutionized communication and marketing strategies
•Not even the luxury industry was spared from the impact of internet, due to
which they had to adapt to such an emergent technology (Castillan et al.,
2017)
•This have posed a challenge for the management to successfully integrate
the technology to existing operations which have remained largely
unchained through centuries, developing complicated strategies to overcome
them (Okonkwo, 2009).
•Concerns have been raised on whether luxury and internet are compatible
and how luxury goods can survive in a virtual world
•Some authors have proposed that internet is a ‘dilemma’ that needs to be
overcome by the luxury industry.
•Other authors have pointed out that internet can act as a communication
channel for the luxury industries.

Good customer base in vital for a successful business, and incorporating online stores can increase the
customer base and awareness as well as accessibility to the products and services.
However, transferring the feeling of a physical store into a virtual space is a challenge.
This have challenged several luxury businesses as they had to develop integrations with the customers
online and also retain the exclusivity of the brand as well as the aesthetic value of the brand.
Thus the industry constantly struggles to maintain balance between tradition and modernism and also
imroving the experience of the customer.
Developing the image of luxury in the online platform is also another big challenge for several luxury
businesses.

• Developing an online platform which
acts more than a mere online platform
• Developing the luxury value of online
platform
• Developing innovative communication
strategies
• Maintaining the expectations of the
customers and consistency in
performance
• Efficient e-marketing strategies
Strategies to develop
an image of luxury in
an online platform: