It is a complication period for the luxury industry. The sector is experiencing positive growth, but there is a gap between China and Asia and the rest of the world.
Markets have grown over the past 15 years, thanks to emerging markets – especially China – returning to a new normal in which success is measured by the customer’s experience and loyalty.
E-commerce is growing quickly, and will continue to affect the relationship between consumers and brick & mortar stores. The development of this relationship is not just a “facade,” it is becoming strategic. We can no longer discuss simply the customization of the product; customizing relationships has almost become more important.
Companies are trying to understand how to vehiculate customer journeys. The customer experience is today the most common issue. Customers don’t purchase more products, but rather experiences. Online shopping have put traditional sales under a heavy pressure. Thanks to social media and websites, customers are often more prepared before entering a store and they already know in detail what they want to buy.
The physical store plays a new role, complementary to online commerce. Physical stores will continue to have a key role but completely different to that of traditional stores. Wanting to compete with the same weapons is anachronistic. The physical store should stimulate desires and not give information about the products. That is totally outdated and sales ambassador will need to refocus their skills and competences.