1. Introduction
The global economic crisis, COVID-19, and other factors have all contributed to a slowdown in the luxury sector. However, for a long time, China's luxury consumer market has been steadily growing, eventually becoming the world's largest luxury consumer country. As China continues to optimize its epidemic prevention and control programs, consumer confidence is rapidly returning. Following the Spring Festival vacation, luxury boutiques in China's first-tier cities are experiencing rapid growth in both foot traffic and revenue. On March 22, 2023, Rhodes PR Communication Group and the Precision Market Research Center released the "2023 China Luxury Report," which revealed that 52% of mainland respondents expect to increase their luxury consumption, exceeding pre-epidemic levels. According to the Global Industry Report, the global luxury industry (including luxury products and experiences) will reach a new high of 1.5 trillion euros in 2023, up approximately 160 billion euros from 2022 [1]. Luxury experience consumption, for example, rebounded rapidly in 2023 and reached its all-time high, owing to increased social contact and global tourist recovery. Miu Miu, Prada's light luxury brand, is recovering in the premium sector, with sales rising [2].
According to the earnings report, Miu Miu's sales revenue in 2023 increased by 58% year on year, including an 82% increase in the fourth quarter; the group's overall revenue increased by 17% to 4.73 billion euros; the overall net profit increased by 44% to 6.71 euros, up 12% from the previous year; and retail sales increased by 17% in the fourth quarter [3]. Prior to that, Brunello Cucinelli and Zegna Group led the industry with 23.9% and 27.6%, respectively, while Miumiu's growth rate was nearly double theirs.
Although many researchers also focus on the academic side of the luxury market, the majority of the investigation focuses on the marketing methods of a certain platform. Often, the focus is on the platform's marketing methods in the new media era rather than the brand's innovative ways. Based on the realistic background of the digital economy era, Li focuses on the sales of a light luxury brand, subdivides the market and customers, actively uses the advantages of new media platforms, and discusses the company's marketing deficiencies and strategies to solve them [4]. Li Fangyan examines Burberry's digital marketing innovation in cross-border markets over the past two years [5]. As a result, both articles emphasize the innovative use of platform marketing, but they overlook how brands can leverage new media platforms to broaden their consumer base. Therefore, in order to make up for this investigation gap, this article takes the successful transformation of Miu Miu's own brand image as an example to discuss how luxury goods can shape the brand image.
The purpose of this study is to analyze the transformation of Miu Miu, exploring how the light luxury brand can use the new media platform to build its own brand image and concept. Additionally, through continuous core expansion, the study aims to understand consumer psychology and broaden the age range of consumer groups.
This article breaks down the investigation into three steps, studying why Miu Miu can effectively increase its female consumer base by analyzing market data and comparing trends before and after the brand's transition. The first section discusses the Miu Miu Autumn and Winter Show's impact on the brand and asks how to use the opportunity to increase the market's customer base during an economic slump. In the second part, the essay will use theory, statistics, and related research to thoroughly evaluate the problem and discuss the causes of three aspects: brand transformation, product design, and marketing strategy. Examine the causes of Miu Miu's success. The third section gives the related proposals and solutions to the difficulties highlighted and addressed in the previous chapter.
2. Case Description
Launched in 1993, Miu Miu is a sub-brand of the Italian luxury brand Prada. It contains women's apparel, purses, shoes, accessories, glasses, perfume presents, and other items. The brand's style is simple, elegant, and youthful. It is one of the most popular fashion labels among young women. The company is known for its youthful, avant-garde, and fashionable cultural image, which combines retro and modern components while displaying a distinct design and style. His designs are full of creativity and imagination, captivating youthful fashion followers with vibrant colors, luxurious materials, and unique touches. The brand values originality, independence, and uniqueness and encourages young people to express themselves and develop their own fashion styles.
The company's performance stalled in 2016 due to retail over-expansion and high exposure challenges with its major brand. Miu Miu embarked on a transformational journey in 2015. The invitation to walk the runway for the Miu Miu 2024 fall and winter show gave Xiaohongshu blogger "A "Day of a Son's Clothes Tan Aunt" a significant boost. Auntie Qin, a 71-year-old retired Chinese doctor, has been posting fashionable ensembles online that defy her age. The exhibition's fashion designer dramatically simplified the design to reflect the literal meaning of "girl." Instead, the well-cut coat, the little black dress, and the fur coat define the individual's life course—from childhood to childhood, infantile to mature—while simultaneously constantly expanding the girl's core.
After the autumn and winter shows in 2024, the proportion of Miu Miu in the elderly market has increased by 10% since the show. Although the young consumer group still accounts for a relatively large market, the gradual growth of the elderly market means that the strategy of Miu Miu is correct, showing that the brand's influence in this market is gradually expanding. According to Prada Group, in the first quarter as of March 31, results show that sales rose 22% to 1.065 billion euros, mainly due to the core brand Miu Miu's strong growth in performance. Miu Miu brand sales rose 41.9% to 129 million euros [6].
3. Analysis on Problems
3.1. Reasons on Brand Position
The expansion of Miu Miu's audience is a direct result of the brand's revolution in positioning, which has eliminated age restrictions. Due to evolving consumer demand and changing circumstances, the Miu Miu brand has not only adjusted its positioning, but has also grown its brand presence accordingly. This growth is evident not only in the diversification of product offerings, but also in the increase in the customer base, marketing approach, and brand perception. Miu Miu plans to further expand its brand concept. In the fall and winter 2024 show, Miu Miu deviated from its previous image of targeting young girls and instead invited Aunt Qin to walk the catwalk. This move surely offers a wider range of design options and inspiration for older consumers. The inclusion of Qin aunts and diverse age ranges in the selection of models for the Miu Miu brand's fashion shows demonstrates the brand's ambition to broaden its concept and target a larger female consumer market.
According to brand positioning theory, different ways of positioning a brand can enhance consumers' understanding of products and facilitate the formation of stronger connections between the brand and its intended image. The brand communication is centered around the brand positioning, which utilizes marketing strategies to shape the perception of the brand in consumers' minds. In order to revitalize the brand and preserve its cultural significance for the original clients, Yao emphasized the need to restructure the company's positioning [7]. The establishment of a defined brand goal is a prerequisite for future development [7].
3.2. Page Setup Reasons on Product Design
Miu Miu's distinct design style has also proven successful in meeting female consumers' desire for fashion, causing Miu Miu brand awareness to grow and attract more trend-chasing consumption. Luxury goods brand development and product marketing strategies can have a substantial impact on customer purchase behavior. Miu Miu, as a light luxury brand, can continue to capture the attention and love of female consumers, thanks to its own design style, quality assurance, and emotional connection with customers. The brand's distinct design approach emphasizes intricacy and innovation, meeting the fashion and individualization desires of female consumers. Following the spring and summer 2022 presentations, Miu Miu abandoned its original pursuit of sweet style in favor of interpreting retro with millennial flair. Free, rebellious street spice image, these shapes generated a wonderful refresh on the social platform, such that many people began to be Miu Miu circle powder, all types of show modeling that can be duplicated overnight were purchased, and we began to hurry to become Miu Miu girls. Brands update product design by repositioning brand customers; these modifications may provide consumers with a different perspective on the brand's image. If the brand's image is successful, consumers may form a favorable opinion of the new image, increasing brand identity and loyalty.
Numerous scholars have emphasized the importance of product design in academia. Li previously stated that consumers who purchase leather luxury items for personal use demonstrate a willingness to proactively explore novel product design styles [5]. Yin previously stated that premium brands typically possess a comprehensive and superior identification system when it comes to product design. Historic components create a distinctive design style and aesthetic system for luxury goods [8]. This type of cohesion enhances the symbolic nature of the brand design, allowing it to stand out from other brands in a highly competitive market. Furthermore, it strengthens the impact on customers by showcasing a unique brand personality [8].
3.3. Reasons on Promotion Strategy
Miu Miu's correct marketing strategy has the ability to reach new customer segments. Miu Miu excels at implementing a variety of marketing methods to increase the brand's visibility and influence. Miu Miu has effectively gained female consumers' attention and love by collaborating with celebrities and fashion events. At the same time, Miu Miu will prioritize social media interaction and publicity to help consumers develop a stronger relationship with the brand and increase user stickiness. Since the Aunt Qin catwalk, Miu Miu's marketing volume has increased significantly, much above the industry norm. This increase not only demonstrates the brand's business value in introducing Aunt Qin to the catwalk, but it also demonstrates consumer familiarity and affection for the Miu Miu fashion concept.
Numerous academic scholars have emphasized the importance of promotional techniques. As an illustration, the Italian Luxury Association published the "Luxury Digital Experience Report" in 2015, which highlighted the fact that luxury consumers frequently exhibit a strong inclination towards digital and social media platforms [9]. Huang Xinya emphasized the importance of luxury brands adapting to a younger audience and utilizing digital platforms to rejuvenate their brand image [10]. The role of digital technology in the growth of luxury brands is continuously being tested and validated [10]. Zhou also noted that an increasing number of firms have established social platform profiles to participate in the social new media marketing movement [11]. Brands can greatly benefit from targeting a vast client base of online social media users, which has the potential to generate substantial profits.
4. Suggestions
4.1. Suggestion on Brand Position
While the growth of a market becomes saturated, brands must find new growth points, enter new markets, or attract new consumer groups by transforming their brand image and repositioning the brand's core value and target audience in response to market and consumer changes. Make the relationship between brands and customers stronger and more meaningful. As a result, this article encourages Miu Miu to employ the product with a specific transformation goal in order to respond to the consumption habits of a larger female customer group.
To begin, Miu Miu must undertake a thorough study of the firm or organization's present status, identify existing challenges and possibilities, and provide the groundwork for formulating transformation goals. Based on an analysis of the existing situation, defining and clarifying the company's or organization's key concerns can help concentrate the transformation on fixing these difficulties. When creating transformation goals, it is vital to solicit feedback from a wide range of stakeholders, including workers, customers, partners, and so on. Companies can use their feedback to gain a more comprehensive understanding of the impact of transformation, meet the expectations and needs of all parties, establish milestones and key performance indicators during the transformation process, and monitor transformation progress even after identifying problems and implementing corresponding measures.
4.2. Suggestion on Product Design
In terms of product design, luxury businesses should stay true to their brand soul while smartly combining creative aspects to ensure that the brand retains timeless charm while radiating modern vitality, allowing designers to experiment with new design components and innovation. As a result, this article recommends that if light luxury firms want to appeal to more female consumers, they should continuously incorporate fresh aspects into their designs.
In the fashion industry, design innovation is critical to sustaining brand competitiveness. Miu Miu may constantly innovate product design to fulfill consumers' demands for fashion and personality. For example, one might experiment with combining different materials, colors, and shapes to produce distinctive visual effects, or one could pay attention to current social hotspots and consumer wants and introduce product lines that are in accordance with current trends. Furthermore, emphasis can be devoted to sustainable development and environmental protection principles, and fashion items made of ecologically friendly materials can be introduced to suit customer demand for environmental protection and sustainability.
4.3. Suggestion on Brand Marketing Strategy
Social media marketing has the ability to generate buzz for a business by leveraging popular events. Brands should actively monitor the current subjects and areas of customer interest, promptly identify the trending issues in today's society, and skillfully associate these topics with their brand. This strategy aims to redirect people's attention towards the brand by capitalizing on the ongoing conversations. Hence, this article proposes that in order to appeal to a larger female client base, a product should continually enhance its reputation and prioritize pertinent occasions.
Maximizing the use of digital marketing strategies is critical for brand growth and establishment in the current era of technology. To increase its digital marketing capabilities, Miu Miu should focus on increasing its online channel construction and optimizing its social media activities. For example, Miu Miu can utilize social media platforms to share fashion news, new product details, brand narratives, and other content in order to actively involve and communicate with consumers. Alternatively, Miu Miu might employ novel digital marketing techniques like live streaming and concise videos to showcase product attributes and brand allure. Furthermore, using big data to examine consumer demands and behavioral patterns could improve the effectiveness of targeted marketing.
5. Conclusion
According to research, Miu Miu must strengthen its brand building to capitalize on the sustained and stable growth of luxury brands. At the same time, new media marketing has become an important way of communication between brands and consumers in the information society. New media marketing has also become an essential marketing method for brands, and its position is increasingly important. With the vigorous development of the light luxury market, Miu Miu has constantly changed its own marketing methods. At the same time, it uses Internet technology to communicate directly with consumers on various media platforms to understand different consumers' suggestions for brands. Therefore, this article conducts research after analyzing the market environment, which provides certain references and ideas for Miu Miu in formulating and improving marketing strategies.
This article's analysis bridges the scholarly gap by examining how brands can broaden their consumer base by modifying their marketing strategies. This, in turn, benefits Miu Miu by enabling it to expand its sales market through strategic changes and the utilization of new media platforms. Finally, this article uses Miu Miu as an example to provide a brand transformation strategy based on the market's background and brand philosophy.
While the study and research on this subject are useful for marketing light luxury companies, there are certain drawbacks. To begin, the research subjects included firms that had recently experienced successful transitions and whose business and marketing structures differed from those of typical luxury brands. Because of the short brand transformation time and the immature operation system of the entire brand, the representativeness of its data must be evaluated. Second, because Miu Miu is a Prada subsidiary brand, its transformation funds, as well as its marketing budgets, are sufficient to ensure its change. As a result, the importance of reference for businesses with limited expenditures must be addressed. Furthermore, with the market's rapid expansion, even though expert understanding of it is still expanding and improving, analysis of it is trailing behind the current market development state. As a result, a practical analysis based on market conditions is required. As the market economy grows, brand marketing must connect with increasingly sophisticated technology, demanding the ongoing updating and development of theoretical research on new media marketing. Advanced and rich theoretical underpinnings can make better recommendations for brand transformation.