Luxury retailers must “up their game” online, says market expert

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Market experts have stressed that luxury brands need to bridge the gap between online and in-store activity, in order to create a streamlined, personalised shopping experience.

Consumers buying luxury goods both online and in-store spend around 50% more per year than in-store only customers, but according to customer engagement specialist ContactLab, the majority of luxury brands are still falling behind the curve in offering a service which encompasses both online and in-store activity.

Chief executive officer of ContactLab, Massimo Fubini commented: “It is surprising to see that not many luxury brands are optimising the relationships they can have with their customers. Luxury brands are faced with competition with online retailers and so need to up their game in order to take advantage of the online sphere.”

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ContactLab’s team of experts carried out 61 store visits in New York City and developed 21 parameters to measure digital and physical retail integration amongst top designers.

The study highlighted the drastic contrast between a handful of brands such as Ralph Lauren, Bergdorf Goodman and Burberry whom have succeeded in achieving a seamless, omni-channel experience and those who were trailing behind, including Dolce & Gabbana and Dior.

It examined how digital is being leveraged to make the most of traffic in-store and found that digitally engaged clients spent more in-store.

Burberry is a good example of collaboration of online and offline operations with ‘click and collect’ already representing 15% of Burberry’s online sales.

The study also examined which brand promoted their e-commerce activity through promotions in store, which had Bergdorf Goodman and Saks leading, while 70% of the panel appeared to be lagging in these measures.

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