Latest report by BoF (The Business of Fashion) and Royalmount (Canada) assesses how brands and retailers can successfully navigate luxury retail’s new dynamics by crafting strategies around three pillars: supercharged connectivity, sustainable retail and inclusive luxury. Insights and interviews from: Harrods, Le Bon Marché, Nike, Reformation, RH, Royalmount, Sephora, etc.
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GLOLatest report by BoF (The Business of Fashion) and Royalmount (Canada) assesses how brands and retailers can successfully navigate luxury retail’s new dynamics by crafting strategies around three pillars: supercharged connectivity, sustainable retail and inclusive luxury.
During last years physical stores experience was significnalty challendged by demand of supreme “luxury” online experience by well-off customers seeking luxury offering.
Leading global brands and retailers are faced with the challenge of redefining retail through the incorporation of immersive and emotional experiences — a game-changing shift which shodul lead to deeper entire shopping experience.
The report includes:
- Expert Interviews: Aesop, Boucheron, Burberry, Carbonleo, Design Hotels, Firmdale Hotels, Four Seasons Hotels & Resorts, Harrods, L Catterton Real Estate, Le Bon Marché, Nike, Reformation, RH, Sephora, SMCP Group
- North America Survey: Proprietary March 2023 survey of ~1,500 US and Canada customers, first segmented to frequent luxury customers in urban areas and further defined as visiting a luxury store at least once a year (n = 603)
- Global Case Studies: Harrods, Le Bon Marché, Nike, Reformation, RH, Royalmount, Sephora
The report suggests that physical retail has the opportunity to meet — and exceed — the increasingly high expectations from luxury shoppers by innovating around three pillars:
- Supercharged connectivelty: 67% of luxury shoppers agree that stores should feature more digital integration. Supercharged connectivity refers to technology as an enabler for forging deeper human relationships via reward, choice and human connection.
- Sustainable retail: 61% of luxury shoppers agree that stores should meet higher environmental standards via responsible approach, anticipation of regulatory changes and space that promote peace and calm.
- Inclusive luxury: 49% of luxury shoppers agree that stores should be more than a place to buy luxury products and can achieve that via refucing frictions, offering engaging activities of all kinds and fostering neighbourhood environment.
Key takeaways:
- Physical store visits are “in-demand” post-Covid – 54% of North American luxury shoppers say they visit a luxury store at least quarterly and 77% of respondents expect to visit luxury stores as often or even more frequently in the year ahead
- Physical store expeinces is now significantly challendged by online – while 38% of customers prefer physocal store to join brand community (vs. 30% online), but both 31-32% of customers would prefer to involve a store for customer service, and 40% of customer prefer online to find out about brands sotries and values vs. only 22% in store.
- Loyalty programs are key for luxury shoppers as they offer clear benefits:
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