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 throughout all their purchasing phases. They are first influenced on social networks by influencers and brand ambassadors. With the advent of digital transformation, the previously fragmented customer journey is evolving towards an omnichannel model to become more unified. This shift makes the customer journey seamless and coherent between physical and digital channels. As a result, customers feel more valued, and their experience is enriched, enhancing their perception of the brand and their loyalty.
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