Luxury goes local: How luxury brands are winning over audiences by going hyperlocal

July 22, 2024

Oisin James Deady is cofounder of London-based creative production agency TwelveA.M.

For luxury brands targeting modern consumers, a new guiding principle is emerging — relevance over reach.

Driven by young consumers seeking deeper connections at a time when traditional luxury marketing approaches are diminishing in influence, the result is a surge in crafted luxury content that resonates deeply within specific global locations or within a clearly defined local community.

From Berlin to Paris to Riyadh, this trend towards hyperlocalization is a strategic move that is redefining luxury marketing, with brands such as Tiffany & Co. setting new benchmarks.

Why hyperlocal?
Through hyperlocal brand partnerships with leading musicians, artists, actors and creators, luxury brands are now demonstrating what it means to deliver elevated luxury in a globally connected yet uniquely local digital world.

Prestigious, one-size-fits-all global campaigns have long been a staple for luxury brands, developing a collective consumer aspiration and allowing brands to maintain strict control over their image and messaging. However, this approach no longer resonates.

Young consumers are failing to connect emotionally with global campaigns that don’t necessarily fit into the narratives of their own lives and lifestyle values. Instead, they seek brands that understand their local cultural nuances or the experiences of their community or tribe, that provide deeply personalized experiences yet still feel luxurious.

Hyperlocal marketing allows luxury brands to achieve exactly that.

The power of local partnerships
A hyperlocal strategy is about more than just translation of a global strategy: it involves capturing the essence of a place, its cultural nuances and its rising stars.

In practice, this involves partnering with creative talent and influencers such as artists and filmmakers who might not be globally known but who have a dedicated following within their own communities. When they make relatable content, they can have a significant impact locally, elevating their audience’s sense of place and belonging and providing brand relevance rather than reach.

Let’s not forget that today’s consumers value authenticity and are keen followers of local and/or relatable talent whose journeys they have followed since well before any brand became involved.

Maintaining global prestige
There’s a fear among luxury brands that a local or community focus means sacrificing global brand prestige. But that’s not the case.

The key is in creating content that is unmistakably luxurious while still catering to local nuances and preferences. High-quality visuals, carefully crafted storytelling and messaging that emphasizes brand values ensure consistency across all markets.

Tiffany’s Lock campaign is a case in point. It featured established and niche artists in six different cities who were able to tell their own stories and forge connections.

Social media plays a crucial role here too. Although campaigns are publicized locally, social media ensures they are seen globally.

This dual visibility reinforces brand prestige while highlighting its commitment to local narratives. It also aids the narrative of local talent as they gain exposure through a global brand association.

It’s a win-win for brands and talent alike. A hyperlocal approach is not just limited to content, as LVMH’s quirky acquisition of the much-loved Paris bistro, "Chez L'Ami Louis" demonstrates.

While the purchase is part of a move to diversify the group’s portfolio, LVMH owner Bernard Arnault talks about the importance of “working to preserve the unique character and family identity and continue to support its French savoir-faire and expertise.”

A luxury group where global brands can sit alongside hyperlocal entities indicates the direction of travel both in terms of ownership and the campaigns that support those assets.

Real-world authenticity
The human touch is essential in hyperlocal marketing.

Talent networks are made of real people with their own hopes, ambitions and expectations. Merging their perspectives with that of a large, global brand is a balancing act.

It requires a clear, flexible approach, with an understanding of how talent and brands think. Hyperlocal content through real-world talent networks also serves as a counterpoint to the growing backlash over inauthentic AI-generated content.

With a new generation of AI-generated avatars now available for brands to use and consumer wariness around their use, luxury brands adopting hyperlocal marketing are advocating authenticity through real-world brand engagement.

The future of hyperlocal
Hyperlocal marketing is a powerful tool for luxury brand engagement. As brands look for ways to connect with consumers on a deeper level, the trend is set to grow and will require brands to reappraise marketing roles and relationships to drive success.

Long-term collaboration with agencies that understand global brands and local nuances will be essential, and marketing responsibilities will be redistributed.

This shift is already underway with global marketers retaining brand protection remits, while local culture managers and marketers are empowered to forge strong connections locally. The result set new standards for elevated brand marketing, making it more relevant, authentic and connected.

Oisin James Deady is cofounder of TwelveA.M., a London-based creative production agency specializing in luxury brand storytelling. Reach him via sarah@velvetpr.biz.

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Luxury goes local: How luxury brands are winning over audiences by going hyperlocal

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