Roundtable: The Future of Luxury Retail in a Digital World


Great roundtable on June 29th on the Future of Luxury Retail in a digital world organized by Bettina Fröhlich (Luxe Partenaires) at Digital Luxury Meeting 2017: Avak Der Boghossian (Deloitte partner) introduced the market trends of digital experiential and personalization (Deloitte report Global Powers of Luxury Goods 2017,https://www2.deloitte.com/content/dam/Deloitte/global/Documents/consumer-industrial-products/gx-cip-global-powers-luxury-2017.pdf); Béatrice Querette (Merchanfeeling) provided insights from the field; Hortense Sauvard shared her perspective as a co-founder of OuiAreMakers.com.

Marie-Cécile Cervellon (EDHEC Business School) shared her research outlook on luxury etail and retail: The boundaries between retail and etail are blurred. The customer is the focal point of the omnichannel strategy. On one hand, online brands make their online presentations concrete, tangible and humanized through pictures of human models, zoom on details, 360 spin rotations, videos and the possibility to interact with human advisors. This strategy decreases the perceived risks associated to the online purchase. The chances to purchase online are multiplied by 1.5. The consumer is encouraged to pick up his purchase in the physical store (click&collect), creating traffic to the store and cross-selling opportunities. On the other hand, the digitalization (or phygitalization) of the point of sales is a major stake. From connected windows that allow purchases 24/7 to order and payment through mobile apps, the store becomes a replica of the e-boutique as much as the e-boutique becomes a replica of the physical store. Yet, in this digital world, let us NOT forget the BASICS… the reasons why clients go to the store: living an amazing in-store experience. Particularly the Millennials who will represent 40% of the personal luxury goods market by 2025, look for experiences that they can share. Unfortunately, 1/3 finds monotonous the experience in the store. Even more worrying, the service is bad, to extremely bad, in half of the visits. Our research shows that a young client activates a stereotype which makes him/her an unprofitable potential client and might lead to discriminatory treatments (Cervellon, Poujol and Tanner, 2017). Training to avoid stereotype-based behaviors is key.

What should the Luxury Store of the Future look like? Marie-Cécile said “A DESTINATION in the customer journey, a place for experimentation and a source of inspiration”.

 

 

 

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What is a luxury retail experience?

In the stores, we wish to create a luxmosphere. Online, many brands find difficult replicating the luxury experience orchestrated in the store.

Yet, what do you consider a “luxury experience”? Comment and shade lights on an experience created by a luxury brand.

Nespresso strategy: how to make coffee aspirational?

This week, we will be discussing Nespresso strategy. In your opinion, is Nespresso a luxury product? Analyze the strategy followed by Nespresso in Europe, with a focus on its retail strategy. Should it be adapted for the US market?

In order to provide sound rationales, please watch the Youtube video embedded below.

Louis Vuitton Island Singapore

On May 5th 2015, EDHEC students enrolled in Msc Global Business (Singapore track) were warmly welcomed by Louis Vuitton ambassadors at Marina Bay Sands. Louis Vuitton Island Singapore is the 12th Louis Vuitton Maison opened in the world and the first in Asia. It offers an immersive experience into Louis Vuitton art of travelling, rooted in Louis Vuitton heritage, with a nautical inspiration. The building, by architect Moshe Safdie, seems floating on the water. The interior design by Peter Marino makes constant references to yachting. Students got a guided tour of the flagship, with detailed explanations on the orchestration of the luxury experience.

Based on the set of pictures shown in class and/or based on documents searched on internet, think about the translation of Louis Vuitton brand identity into the boutique design and layout.

2015-07-15 14.47.22

 

 

 

 

 

http://www.marinabaysands.com/shopping/louis-vuitton.html

Many thanks to Sylvie Jean, Director of EDHEC Msc Global Business and to Hendra Zen and Jonathan Jong, Store Managers at Louis Vuitton Singapore, for making this incredible experience possible.