THE FACTORS OF CHANGE
The rise of e-commerce and m-commerce, followed by restrictions related to the health crisis, are forcing Luxury Houses to innovate in order to maintain the link with their customers and offer them alternative purchasing methods. The challenge is to adapt to changing consumer habits and to be challenged by new customers such as millennials and Chinese consumers, who will represent 40% and 50% of luxury consumers by 2025.
THE DIGITAL SHIFT
Digital is a new strategic model for Luxury Houses: it allows them to meet the expectations of customers who have become adept at online consumption. Social networks and online channels have a major influence on purchasing decisions: “75% of Luxury purchases were influenced by a digital channel” and it is estimated that “20 to 25% of transactions were made online and digital directly generates 13% of offline sales “*.
The buying process often starts online or on social networks before continuing in shop, this is called ROPO (Research Online, Purchase Offline). As a result, customers arrive in shops very well informed. Consumption patterns have developed around this trend, such as Click & Collect. However, customers choose to continue their shopping journey in-store in order to benefit from a unique customer experience and relationship.
AN UNUSUAL CONTEXT
The health crisis has resulted in an adaptation of purchasing behaviour, with a complete switch to digital when the shops were all closed. New services have been adopted, such as online sales, which were previously underdeveloped in the luxury sector, and live shopping, which makes it possible to offer an ultra-personalised service that meets the expectations of our customers. This new sales method allows for exclusive exchanges with customers wherever they are.
NEW CUSTOMER PROFILES
Consumption patterns also vary according to customer profiles, hence the importance of capitalising on data to get to know them better and adapt to their tastes and personality. This customer knowledge also offers the possibility of proposing more appropriate content with greater added value.
The two main profiles that stand out in the Luxury sector are millennials and Chinese consumers, who are both customers with very strong convictions and values, which they expect to find in Luxury Houses: ethics, respect for the environment, inclusiveness, digital, etc.
THE OMNICHANNEL MODEL
These customers are highly connected and in all their purchasing phases. First influenced on social networks with influencers and brand ambassadors. With the advent of digital, the previously fragmented customer journey is moving towards an omnichannel model to become unified. The customer journey becomes seamless and coherent between the physical and the digital. Customers feel valued and their experience is richer, which enhances their image of the brand and their loyalty.
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