Luxury Interactive 2017

October 16 - 18, 2017

Convene Conference Center, 32 Old Slip, New York, NY


The Challenges with Omnichannel Retailing

An Omnichannel ConundrumAn Omnichannel Conundrum
When it comes to e-commerce, the biggest challenge for luxury brands is international fulfillment. Their high-value products and services face unique taxation laws, while retailers must navigate through currency exchange complications and most notably, theft—where loss of even just a few high-value items can deal a substantial blow to the business. Products shipped by post or even courier face these risks.

Key topics include:
  • The state of luxury retail
  • The omnichannel conundrum
  • Impact of the Brexit

Executive Summary

As the impact of e-commerce giants like Amazon and geopolitical factors contribute to slowing traffic and weakening sales in department stores, a general down cycle has taken a toll on luxury retail. But while shopping habits have changed, the fundamentals of successful luxury retail remain intact.

As luxury retail transitions through this soft phase, larger brands have found a strong presence across all digital channels, be they email, e-commerce, mobile, or social media. However, brands that maintain selectivity—such as Chanel, who sells only fragrances and has branched out to sunglasses in only recent years—face an added challenge within digital channels.

Luxury brands continue to lag behind non-luxury retail sectors in terms of digital adoption, despite having made advances in adoption of social media. Additionally, m-commerce is receiving only modest attention from these brands.

Key Findings: A Strategy for Luxury Retailers
  • Take advantage of international omnichannel to weather the storms of global economic uncertainty.
  • Sell better than the second-hand dealers and fakers by creating a superior online store, start certifying dealers of their products, and give customers incentives to shop through these channels as opposed to others.
  • Find an omnichannel strategy that plays to the ethos of luxury retail, where exclusivity, high perceived value and clear authenticity transition into the digital landscape, along with their business.

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