With a globally rising percentage of internet access and time spent on social media in emerging, developing as well as mature markets, investment into an exceptional digital customer experience can be more and more efficiently leveraged and scaled.
This thesis aims to quantitatively and qualitatively determine whether a measurable influence of users’ social media interaction with artists and luxury brands on their prices and sales exists, how it manifests itself and which conclusions and recommendations can be drawn from its existence and applied to both industries. Does a Facebook Share translate into a good’s sale? Is art’s instagramisation reflected in auction prices? And how can we measure the paradigm shift in these traditional industries, led by democratization of information- and opinion-sharing, exhibited by rising amateur-experts and new opinion leaders afar from established critics?
Table of Contents
1. Introduction
1.1 Market Overview
1.2 Client Profile
2 Research Questions
3 Hypothesis
4 Literature Review
4.1 Luxury & Digital
4.1.1 Luxury Image
4.1.2 Sales
4.1.3 CRM & Communication
4.1.4 Risks & Areas of Development
4.2 Art & Digital
4.2.1 General Development
4.2.2 Hyper-monetization
4.2.3 Information Access
4.2.4 Critics & Opinion-leaders
4.2.5 Participation & Valuation
4.2.6 Information Asymmetries
5 Interviews
5.1 Digital Innovation in the Luxury Industry
5.1.1 Penetrating emerging markets via new channels
5.1.2 Globalization through digitalization
5.1.3 The luxury brand image in new media
5.1.4 Alterations in the designing or purchasing process
5.1.5 Digital Participation Conversion pre- and during purchase
5.1.6 Post-Purchase Service and CRM
5.1.7 Areas of development and risks
5.2 Digital Innovation in the Art Industry
5.2.1 Penetrating emerging markets via new channels
5.2.2 Globalization through digitalization
5.2.3 Art in & digitalized Capitalism
5.2.4 Hyper-monetization: The influence of finance in Art
5.2.5 Digital Participation: Influence on auction results
5.2.6 Instagramisation: Art creation and selection altered by digital media?
5.2.7 Digital tools in the sales process
5.2.8 Cooperation of fine art with mass e-tailers
5.2.9 Areas of development and risks
5.3 Interview Conclusion
6 Quantitative Analysis
6.1 Approach
6.2 Methodology
6.3 Findings
6.3.1 Brand-centric analysis of social visibility
6.3.2 Social visibility’s influence on sales
6.3.3 Refocused social visibility analysis
6.3.4 Interactive digital media’s correlation with sales
6.3.4.2 Insignificant
6.3.5 Correlation between Sales and Social Media
6.3.6 Challenging the Findings
6.3.7 Concluding Findings
6.4 Limitations
7 Concluding: Hypothesis
7.1 Hypothesis 1
7.2 Hypothesis 2
7.3 Hypothesis 3
7.4 Future Recommendations
7.5 Further Recommendations
8 Conclusion for lux.
Research Objectives and Key Topics
The primary research objective is to determine if a measurable correlation exists between social media interaction and the financial performance (sales/auction prices) within the luxury and fine art industries, aiming to identify how digital paradigm shifts influence these traditional markets.
- Impact of social media performance on luxury sales and auction prices.
- Role of digital innovation in market penetration and consumer engagement.
- Comparative analysis of luxury goods and fine art as speculative asset classes.
- Omni-channel integration strategies for traditional luxury and art retailers.
- Influence of digital "instagramisation" and user-generated content on valuation.
Auszug aus dem Buch
1. Introduction
The explosive growth of new and established social media platforms, as well as luxury brands’ increasingly competitive fight to engage with future and existing clients via digital media sets the tone of this thesis. Record sums are being paid for acquisitions in the tech industry (€150m for luxury fashion online-shop mytheresa.com by Neiman Marcus; $1bn for Instagram by Facebook), and the world’s top fashion bloggers are earning $8m per year (Strugatz, 2014; Hüsing, 2014). Simultaneously, digital media platforms to discover, curate, share and buy artworks are springing up like mushrooms, and art-flippers sell their works via curated social media1.
The existing influence of digital and social media on luxury brands’ and artists’ public awareness, and therefore aspirational and brand value, is presupposed. However, an accord about the quantifiable scale of influence on sales and auction prices has not been reached amongst industry experts. Furthermore, the degree at which online marketing, selling, and communicating is ideally to be executed constitutes a heatedly discussed topic within the two industries which root their success on scarcity, exclusivity and a certain magical opaqueness: luxury goods and fine art.
This thesis aims to quantitatively and qualitatively determine whether a measurable influence of users’ social media interaction with artists and luxury brands on their prices and sales exists, how it manifests itself and which conclusions and recommendations can be drawn from its existence and applied to both industries. Does a Facebook Share translate into a good’s sale? Is art’s instagramisation reflected in auction prices? And how can we measure the paradigm shift in these traditional industries, led by democratization of information- and opinion-sharing, exhibited by rising amateur experts and new opinion leaders afar from established critics?
Summary of Chapters
1. Introduction: Presents the rise of digital platforms in the luxury and art sectors, establishes the research objectives regarding sales correlation, and outlines the mixed-method approach used to evaluate these influences.
2 Research Questions: Defines the three core queries investigating the link between social media performance, auction prices, and sales across the luxury and art markets.
3 Hypothesis: Proposes three central assumptions regarding the impact of social media on auction prices, yearly sales, and the potential synergy between luxury sales tools and art’s digital compatibility.
4 Literature Review: Synthesizes existing research on the challenges and opportunities of digitalizing the luxury and fine art industries, focusing on brand image, sales distribution, and information asymmetries.
5 Interviews: Details qualitative insights from international industry experts across the luxury and art sectors regarding emerging market strategies, digitalization, and future risks.
6 Quantitative Analysis: Examines the data-driven correlation between social media interaction (social visibility, backlinks, likes) and financial outcomes, utilizing a binary Spearman Correlation.
7 Concluding: Hypothesis: Evaluates the validity of the initial hypotheses based on the gathered qualitative and quantitative findings, ultimately refining the research conclusions.
8 Conclusion for lux.: Synthesizes the final outlook, noting that while quantitative links are complex to establish, digital customer experience remains a critical factor for future competitiveness.
Keywords
Digital Innovation, Luxury Industry, Fine Art Market, Social Media Performance, Auction Prices, Sales Correlation, Spearman Correlation, Omni Channel, Hyper-monetization, Instagramisation, User Generated Content, Brand Visibility, Customer Engagement, Digital Transformation, Luxury Strategy
Frequently Asked Questions
What is the core subject of this thesis?
This thesis investigates the relationship between social media performance and financial metrics, specifically sales in the luxury goods industry and auction prices in the fine art market.
What are the primary industry sectors addressed?
The study focuses on the high-end luxury goods market and the international fine art market, comparing their reactions to digital disruption.
What is the main research question of this study?
The research asks whether social media interaction has a measurable, quantitative influence on the commercial success (sales and prices) of artists and luxury brands.
Which methodology does the author apply?
The author uses a mixed-method approach, combining qualitative interviews with recognized industry experts and quantitative data analysis via a binary Spearman Correlation.
What topics are covered in the main body of the work?
The main sections cover literature reviews on luxury and art in the digital age, insights from expert interviews, and a quantitative analysis correlating digital metrics like backlinks and social visibility with financial results.
Which keywords define this research?
Core terms include Digital Innovation, Luxury Industry, Fine Art Market, Social Media Performance, Auction Prices, Omni Channel, and Hyper-monetization.
How does the "instagramisation" of art impact the market according to the author?
The author discusses how art, when presented through digital media, gains visibility that can affect its sales potential, though experts remain divided on whether this correlates directly with long-term auction prices.
What are the main risks associated with digitizing these markets?
The author highlights risks such as information asymmetry, the proliferation of counterfeit goods, conflicting interests between experts and buyers, and the potential loss of brand exclusivity.
- Arbeit zitieren
- Master of Science | HEC Paris Janna Schubert (Autor:in), 2014, Digital Innovation in the Luxury and Fine Art Industry, München, GRIN Verlag, https://www.grin.com/document/294171
