Luxury retailers indulge in the benefits of digital sales channels
By Nigel Atkinson, Consultant, Salmon
The luxury sector is leading the way in digital commerce. Major brands with a long history and traditional heritage have seen the potential in the technology, for both improving customer experience and driving sales, and have used it smartly. As a result, 100% of luxury retail businesses have seen the positive impact of digital in their organisations, according to our recent study, British Business in the Digital Age, which explores the current and future state of digital commerce in Britain.
Here are three key findings which demonstrate digital readiness in luxury retail:
- mcommerce is the channel of choice – Almost all (96%) luxury retailers currently use mobile sales channels. Of these, 89% have experienced benefits, with the ability to collect data and target customers more accurately considered the top highlights. Their experience to-date has led over a quarter of luxury retailers (26%) to say that over the next five years most of their annual revenue will come from mobile.
- Luxury retailers haven’t rushed into digital technology investment – Take a brand like Selfridges. It has embraced digital technology with an established, mobile-optimised ecommerce offering, but has only recently announced plans to launch a dedicated mobile app.The brand represents many other luxury retailers who have not rushed into digital technology investment and instead planned and designed its digital offering to match its demographic.
- They have the skills in place to maximise the potential of digital technologies – Over half (56%) of luxury retailers already have a dedicated team in place to manage digital commerce, compared with 33% of UK businesses. They are leaps ahead of other industries as a result and have the resource to plan to deal with the pace of change, including embracing new innovations like the Internet of Things (IoT). In fact, 92% of businesses stated they are either already investing in the IoT or plan to do so within five years.
The future of digital in luxury retail is exciting and full of innovation. The key will be to continue to choose the digital channels and offerings wisely, following its own rules of innovation - smart, seamlessly integrated and quick to re-invest the rewards.
For more information and to download the full report please click here.
Salmon will also be speaking on the future of luxury ecommerce at Luxury Interactive 2015 Summit, the leading ecommerce and omnichannel event for luxury brand innovators in London on 26 - 28 October.