June 30, 2017 - No Comments!

Marketbuzz: digital talk with luxury retailers

by Ritish Reddy

I have recently had separate conversations with HR Leaders from two different Luxury Retail Brands, and the key question that both these organizations are trying to answer is the following:

How is the future of luxury retail going to look in the digital world, and what are the skill sets that our employees would require to sustain our relevance and competitiveness in the future? I spent some time with our learning consulting team to understand more about the impact of digital on the Luxury Retail and the insights were fascinating. Here is a summary:

1. Currently, 7% of the overall sales in the luxury retail happens via online channels. This is expected to plateau at 20% by 2025. This means that much of sales will still happen via the brick-and-mortar stores in the future. Hence, the digital revolution or transformation needs to happen within the store.

2. The focus of luxury retailers currently is on capturing the market share in the digital space via digital marketing, but the winner here will be the player who is able to create a seamless omnichannel experience and digitally transform the brick and mortar spaces.

This might interest you: Crystal Gazing - Talent Transformation Trends 2017

3. Some of the pioneering work in this space is being done by the Luxury Fashion Unicorn 'Farfetch' which has recently launched the ‘Farfetch store of the future’ as well as an operating system for the futuristic stores called 'FarfetchOS'.

4. As of 2017, Farfetch has launched 90-minute ‘store to door’ delivery system, in collaboration
with luxury brand Gucci

Watch the 'Store of the Future' video from Farfetch at http://farfetchos.com/. You can also find the ‘Store to Door video from Farfetch on YouTube.

 

Published by: KNOLSKAPE in Blogs

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