The health emergency has also challenged the retail world, leading to the rethinking of physical spaces and the bond between brand and customer, with an increasingly phygital perspective. This has also happened in the Luxury market, which has suffered a sharp decline in sales due to the lockdown phase and subsequent constraint in terms of mobility (McKinsey State of Fashion 2020 study).
However, new opportunities are potentially emerging from this time of crisis, especially in terms of customer-centered thinking. In fact, according to True Luxury Global Consumer Insight research by Boston Consulting Group and Altagamma Retail Revolution, it was found that 43 percent of consumers are willing to spend on experiences and 46 percent value the personalized clienteling formula (a figure that rises to 76 percent on Chinese customers).
Digital and Retail
In the face of the retail crisis, if "digital" is not the solution, it is certainly an important building block for developing certain segments, such as:
- Building a strong customer relationship in phygital key, to enhance the bond between brand and customer
- Personalization of the individual's experience through the use of AR/AI for increasingly simple and targeted purchases
- Simplifying processes, communication flow in the supply chain, and building an increasingly efficient ecosystem between store, e-commerce and customer.
Those who gravitate to the world of Luxury have very high expectations in terms of efficiency, attention, experiential value, without neglecting a key component: dreaming.
I Brand
Some brands were already taking steps to create unique experiences-one example is Moncler Genius, a project started a year ago-but the need to connect with customers has become increasingly imperative, especially in an era of social distancing and slow return to normalcy.
Gucci, for example, recently launched the Garden Virtual Tour, the digital counterpart to the space created by Alessandro Michele in Florence's Piazza della Signoria: an immersive experience that takes the public through the atmosphere of a physical location, admiring unique objects, refined settings, and reliving the brand's history, but not only that. The tour, in fact, allows for the first time to proceed with the purchase of products present only in the Florentine store.
Another brand moving in this direction is Burberry, which between 2021 and 2022 will launch its first social retail store in Shenzen, China, a seamless integration of physical and virtual space. Inside the store, in fact, there will be sculptures and installations with which customers will interact thanks to Augmented Reality, in addition to always being guaranteed a service balanced between customer experience and customer care, through the use of WeChat.
In this regard, L'Oreal is also poised for an increasingly strong integration between physical space and the digital universe with its 3D virtual flagship store dedicated to Lancôme recently opened in Singapore, which combines traditional interaction within a physical space with a totally virtual shopping experience. Between livestreams, screens that can provide personalized consultations through the use of specific algorithms and celebratory videos, engagement is guaranteed.
That experience that seems playful in itself translates into an opportunity to evolve the relationship with customers, manage flows within physical spaces, and at the same time to build user loyalty through a process that does not end with the purchase of a product, but sees this as only the starting point. A way to offer increasingly personalized experiences and suggestions, strengthen the relationship with the brand, and take the "retail experience" to a new level.
As was the case in Paris, where the iconic Galeries Lafayette to cope with the Covid-19 emergency has partnered with start-up GoInStore to provide a Live shopping service dedicated to French and foreign customers . A way to buy products from its 120 top brands with home delivery or in-store pickup. And there's more: brand ambassadors and personal shoppers have been involved in the operation.
Could this be the medium- and long-term evolution of the purchase?
I look forward to seeing you at Digital Innovation Days, purchase your ticket with discount code FrancescaTommasi30. Access the site through this link: https://www.digitalinnovationdays.com/?ref=89
Francesca Tommasi
Brand Ambassador Digital Innovation Days 2020