In order to adapt to the social, economic and technological changes taking place in the luxury retail market, brands are having to shed their traditional brand approaches to keep up with changing consumer needs. So what next? In what we’re calling a “trivergence of retail” we’ve broken down the demands of luxury shoppers into three key themes: information, convenience and entertainment.
This trivergence is played out across an omni-channel approach, where the consumer experience is consistent and seamless across all the different channels on which they shop – digital or physical. Successful brands will be those that weigh physical and digital channels equally, developing strategies that service all three consumer needs, simultaneously and across all platforms. The recent Havas LuxHub luxury survey showed that while physical stores are still preferred by half of luxury consumers, many are making use of both online and the physical store – in equal measures.
The amount of cross-channel luxury shoppers is set to grow in the next few years and presents an exciting opportunity (and challenge) for brands in this space. Luxury brands must ask themselves: how do we integrate initiatives that encourage cross-channel purchases by answering these three needs consistently?
Let’s look at them one by one.
Information
Consumers are becoming more focused on the production and provenance of a product. They want to identify in some way with what a brand represents and what that means about them personally. As a result, a certain depth of information is required in order to obtain belief in a brand.
Equally, it’s becoming accepted that brands need to justify high prices with more information for the luxury consumer. Ultimately, what consumers want in this space is more information about company practices, designers’ personal stories and a deeper understanding of brand beliefs.
What does this means for the physical retail environment? In-store technology can help to make product information instantly accessible, through stationary tablet kiosks and product tags or via product plaques with scannable codes, which consumers can use to access product information on their smartphones. In addition to product information, brands now must find a way to communicate their lifestyle stance through the physical environment. Lifestyle brands aimed at young people are doing this particularly well, with the likes of APC and Acne hiring sales assistants with a cultural and aesthetic relatability.
In terms of online, detailed product specifications, videos of production workshops and consumer reviews can all help. But things will change; as technology evolves, the manner in which consumers receive and seek information could look very different to how it does now. Luxury brands will need to be ahead of that curve.
Convenience
The digitally-enabled consumer is now accustomed to the freedom of purchasing or replenishing their regular luxury products with incredible ease and independence. While there are a multitude of online services catering to the express needs of frenzied luxury consumers, physical luxury shopping has always been deemed a slow art. As working hours extend and lifestyles become even busier, the perceived pace of luxury shopping has become a barrier for some.
With the beauty industry leading the way for luxury convenience, one can expect to see more express counters, designer vending machines, augmented reality applications and self-service stations in top luxury emporiums. During the holiday seasons or around key annual occasions such as Valentine’s Day, expect to see more pre-wrapped gift items and the ability to customise or monogram gifts in seconds.
Entertainment
Buying luxury has always been about experience: immersing oneself in a grand environment and indulging in the doting services offered in-store. In the future, luxury brands will need to go further to deliver this experience through everything they do.
In the physical store environment, luxury brands will have to find creative ways to entertain their consumers. This could be through incredibly luxurious retail environments, experiential retail setups or specific entertainment activities, such as cocktail bars, special shopping evenings with DJs or musicians, fashion shows, art exhibitions, expert talks and other types of in-store programming. More VIP shopping zones with private rooms (and extraordinary levels of service) are being rolled out across key department stores including Selfridges and Harrods.
When it comes to online, entertaining will mean more video content – including shoppable – as well as increased investment in editorial content, interactive webchats, customer forums, and the ability to visualise product in new and exciting ways.
Tammy Smulders is global executive director of LuxHub and managing partner LuxHubUK
This advertisement feature is provided by Havas Media Group, sponsors of the Guardian Media Network’s Organic marketing hub.
