DIGITAL P&L increasingly strategic for Luxury Fashion Brands – what we uncovered during the 2014 budget rounds in Luxury.
With online sales accounting for 20% to 40% of international labels, and often close to 50%, the E-Commerce P&L isn’t ignored anymore by Luxury Brands CEOs.
One can mention the likes of Kate Spade, Tory Burch, Burberry, and even Alexander Wang – relaunching their website today and aiming at 50% of sales online by end 2015. Brands like Gucci are already dependent on online sales.
But beyond USA or British based labels, French, Swiss and Italian Brands are now taking e-Commerce seriously… watch this space in 2014, we see great things coming.
This happens also as Luxury Brands invest massively in their Directly Operated Stores and are working on defining the role of Department stores in their strategies.
Some learnings from recent 2014 Budget rounds in Luxury Brands:
- In-Store Shoppers do prepare their purchases online and do-so increasingly using non-branded terms – hence imperative to develop a Web Presence and to focus on relevant SEO
- Shoppers in General expect the brands to sell online
- They do not necessarily expect the full assortment but to experience the brand’s inspiration and latest collections
- The Sale Ceremony and CRM processes must integrate digital at some point, if only to connect with the customer leaving the store undecided
- Luxury Shoppers increasingly tend to prefer paying online after visiting a store and choosing the product.
- Luxury Department stores are an indispensable partner to Brands to educate new customers, but the standard for Selective Luxury online has to be set.
As usual, looking forward to your thoughts!
Alexandre Meersonwww.laboutiquedeluxe.com – helps Brands deliver Commercial Innovation and Change through Customer Experience, Digital Marketing & International Distribution. The founder and curator of the Digital Luxury Brands online networking group, Alexandre constantly researches ways to combine Brand Experience with Product Knowledge and Hard Working E-Commerce to generate sustainable revenue, profit and customer loyalty. Alexandre heads up ‘La Boutique de Luxe’, www.laboutiquedeluxe.com a specialized multichannel marketing and sales consulting firm. His unique blend of experiences on behalf of prestigious Luxury & Lifestyle Brands and recognized B2B Businesses places him in a strong position to share his expertise in the fields that underpin successful online retail and business transformation.
E-Commerce consulting – CRM Consulting – Luxury, Beauty and Fashion Brands