Experience; The New Luxury?
Experience;
The New Luxury?
10th April, 2024
We’ve seen how global luxury corporations like LVMH and Kering slowly cottoned on to the fact that they no longer needed luxury e-commerce players to sell their products, whilst the retailer retained the customer.
First came eConcessions, a nail in the coffin for some online luxury retailers, and and a big challenge for those still going. Brands are choosing to invest in owned online ecosystems where they have total brand control and can acquire a high-quality customer that they can build loyalty with directly. Customer acquisition with no middle man.
Now, those same luxury giants seem to be onto something else – and it’s not just about control of e-commerce anymore.
Now, those same luxury giants seem to be onto something else – and it’s not just about control of e-commerce anymore.
With the non-e-comm luxury retail market projected to hit $96.18 billion in the US this year alone (e-marketer, 2024), it’s clear that curating unforgettable physical experiences is the new battleground for brands and retailers.
So here’s the billion-dollar question(s):
Can department stores compete with and differentiate from mono-brand experiences?
Do luxury brands still need retailers?
Do luxury customers still need retailers?
I’m interested to see how the luxury brand-retailer landscape will evolve over the next couple of years, and I predict a bit of a shake-up!
