DTC Dispatch #008

Luxury marketing and Artificial Intelligence

🎉 Happy New Year, community of DTC Moguls!

This week in DTC Dispatch:

 👗 2023: The year luxury outgrew fashion.

💨 Fragrance sees online boost during early part of holiday season.

🖥️ ChatGPT and luxury marketing: How to utilize AI tools for premium brands.

🛍️ US holiday sales growth trails 2022 with shoppers seeking value.

👟 What marketers can learn from Dove and Nike partnership.


2023: The year luxury outgrew fashion

Was 2023 the year luxury outgrew fashion? This year, the industry’s biggest brand Louis Vuitton appointed the producer, performer and entrepreneur Pharrell Williams as men’s creative director — signaling how cultural strategies are becoming increasingly important to brands. Fashion brands amped up their presence at concert tours, Formula One races, and more.

Our take: The luxury landscape has been in flux since the pandemic years. Economic uncertainty is prompting aspirational shoppers to pull back on discretionary spending. This leaves the ultra-rich to fuel the market and industry trends. Meanwhile for them, logo fatigue and the ‘quiet luxury’ phenomenon is reshaping the market at all levels. Brands need to continue to be innovative and find ways to stand out in an oversaturated market.

Fragrance sees online boost during early part of holiday season

While most fragrance shopping continues to happen in stores, online sales of luxury fragrance brands were nearly double the rate of in-store sales in early Q4, according to Circana analysis shared with Retail Dive.

Our take: The shopping experience for buying fragrance in-store has changed at some retailers this year. In May, Ulta Beauty COO Kecia Steelman said the beauty retail chain will store fragrances in locked cabinets at 70% of its locations by the end of this year. This is due to increased theft. Since shopping for fragrance in-store is becoming a different experience, consumers are turning to purchasing online.

ChatGPT and luxury marketing: How to leverage AI tools for premium brands

Over the last few years, luxury digital marketing has seen a fusion between traditional marketing tactics and artificial intelligence. This is due to the increase of screen time and finding new ways to capture audience attention. How can luxury marketers leverage this technology?

  1. Versatility

  2. Efficiency

  3. Social media marketing

  4. Copy for paid advertising

Our take: Given the rise of artificial intelligence and ChatGPT in the past few years, its no surprise the luxury marketing industry is figuring out ways to incorporate this technology into their marketing strategies. Will audiences see through the computer-automated words and copy? Or will this new efficient means of marketing help cut back costs for luxury brands?

US holiday retail growth trails 2022 with shoppers seeking value

Early data from Mastercard SpendingPulse shows that US holiday retail sales rose at a much slower pace than in 2022, as selective shoppers sought value and promotions throughout the season. Holiday retail sales are a key barometer for the US economy, which has shown resilience in recent months. Retail sales unexpectedly picked up in November as lower gas prices may have given shoppers some relief. Even so, companies have said that consumers are spending more cautiously.

Our take: The economy is in a state of flux at the moment, and consumers are waiting for the ‘other shoe to drop.’ People are trying to be cautious when it comes to spending to prepare for a possible recession. The new year will bring interesting learnings when it comes to consumer spending habits.

What marketers can learn from Dove and Nike partnership

Dove and Nike have teamed up to launch the Body Confident Sport program with a mission to boost girls’ body confidence in sports. It is not easy to find the right brand partnership, where values and missions are aligned from the start, especially when considering what role brands can play in helping to tackle some of the biggest challenges facing society today.

Our take: In today’s society, brands have a responsibility to use their power and resources to support good causes. This is one example of a successful partnership between two thriving brands, who are coming together to use their power to help society.


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🎊 Hope you have a great start to 2024!
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