This year has affected every industry - and unfortunately, luxury brands aren’t immune from the changing times. McKinsey recently released a report that is predicting the personal luxury goods industry will experience an estimated 35% to 39% decrease in sales by end of year. Another report, from Boston Consulting Group, puts the global luxury sales decline at about 29%, per CNBC.
Still, it’s not all bad news for luxury brands! McKinsey forecasts a 1% to 4% increase in 2021 in correlation with consumers who are ready to splurge in a post-pandemic world. Regardless of whether predictions come true, there’s no question that the luxury industry must be ready to offer customers things like, ship from store for same day delivery and other services to grow sales.
Convenience is a hot topic this holiday season - from the online shopping experience to last-mile delivery luxury brands are offering curbside pick-up and shopping by appointment but these options aren’t going to appeal to everyone. What’s missing is that luxurious in-store experience coupled with what’s now regularly expected: convenience.
So, how can luxury brands win more customers, especially during this coming peak season?
A Fast, Convenient and Frictionless Last Mile Delivery Goes a Long Way.
First, luxury brands need to bring that superior in-store shopping experience to their customers - right in their very own homes. But an indulgent online experience isn’t enough. The luxury buying experience for the “new normal” also must somehow evoke the sumptuous feel that originally drew buyers in to the luxury brand in the first place. And that luxe feeling must extend to every stage of service - from the ordering process through fulfillment and delivery.
After enjoying an intuitive online shopping experience, luxury consumers don’t want to worry about the delivery process in any way. After all, buyer behavior has substantially changed in recent years - and a luxury brand’s clientele especially wants whatever’s most convenient and easy! They want to find, select, and pay for their product, and have it delivered in a timely, transparent, and frictionless fashion.
All of this means that luxury brands must utilize premium last mile and home delivery solutions, so customers can receive the highest shopping experience like ship-from-store for same day or next day delivery, and other more premium value added delivery services. The good news is that GEODIS | City Delivery provides all of these services, including forward stocking locations and micro-fulfillment centers to make sure the customer gets what they want, when they want it. And there’s more . . .
Ready for the next big thing in luxury retail? Check out how TOSHI brings home the “luxury of convenience”. TOSHI’s services use highly-trained sales staff to bring the in-store shopping experience to where the customer is, at a time that is convenient for them.
Founded by Sojin Lee, one of the first executives at Net-a-Porter, Toshi provides services like try before you buy, instant returns and pinning/hemmings. Clients can also select a 30-minute time-slot for delivery where they receive the ordered products, try them on, and immediately return anything they decide not to keep. Luxury retail customers can’t seem to get enough of this service, as reflected in the goals that Toshi has set--and is on target to meet--for its retail partners:
- +40% AOV
- +30% uplift revenue
- -30% returns
With innovative ideas like this, there’s significant hope on the horizon for those luxury brands who quickly begin to capitalize on convenience and provide a one of a kind in home delivery experience.
Get in contact with our experts, visit our website: GEODIS | SCO - City Delivery