LXSC’s Post

I wrote a piece about what we're up to at LXSC, the recent challenges in multi-brand luxury retail and why we think there's space to explore a new approach. #luxury #retail

With 35% of shoppers more likely to return items because of the cost-of-living crisis, many luxury brands have experienced increased return rates & fraudulent behaviour like staging & wardrobing. We took a look at the challenges & opportunities facing luxury retailers during their returns process & outlined some top tips they can use to generate loyalty, reduce costs, & control returns. You can read the article here >> https://hubs.la/Q02TC7K50 #eCommerce #Returns #Retail #ReverseLogistics #RetailTech #Luxury #HighEndFashion #LuxuryFashion #Staging #Wardrobing #Bracketing

In our new deep dive on global luxury goods retailing, we predict the market to grow at a more muted pace this year as aspirational #luxury shoppers continue to spend more cautiously. Coresight Research projects: - The personal #luxurygoods market will be worth $427.7 billion worldwide in 2024. - #China will supersede the US to become the largest personal luxury goods market in the world by 2030. - The soft luxury category (such as #apparel and accessories) will sustain the market-share gains it has enjoyed in recent years. - Our "Fast Luxury" model will represent a self-reinforcing cycle of younger shoppers demanding more on-trend products, shorter average luxury product lifecycles, a greater number of units in circulation and an expanding #resale segment. Our 80-page report on the global luxury goods market is the latest in our Market Navigator series, with each report offering an in-depth view of a retail, consumer or technology sector, packed with data on sectors, segments, companies and consumers: https://lnkd.in/gNUhjGkK

💎 The Next Frontier for Luxury Brands 💎 We've seen how global luxury corporations like LVMH and Kering slowly cottoned on to the fact that they no longer needed luxury e-commerce players to sell their products, whilst the retailer retained the customer. First came eConcessions, a nail in the coffin for some online luxury retailers, and and a big challenge for those still going. Brands are choosing to invest in owned online ecosystems where they have total brand control and can acquire a high-quality customer that they can build loyalty with directly. Customer acquisition with no middle man. Now, those same luxury giants seem to be onto something else - and it's not just about control of e-commerce anymore. With the non-e-comm luxury retail market projected to hit $96.18 billion in the US this year alone, it's clear that curating unforgettable physical experiences is the new battleground for brands and retailers. So here's the billion-dollar question(s): ❓Can department stores compete with and differentiate from mono-brand experiences? ❓Do luxury brands still need retailers? ❓Do luxury customers still need retailers? I'm interested to see how the luxury brand-retailer landscape will evolve over the next couple of years, and I predict a bit of a shake-up! https://lnkd.in/e-uy53yf

Love to see a good retail and luxury report, finally, even if it is coming out of the UK 😉 Of course, here in the US, our overall situation is much different in many ways, but I do think CEO Michael Kliger says it best below. "In the US, “there’s a market opportunity for customers that want to shop high-end luxury at a very elevated level,” said Michael Kliger, Mytheresa’s chief executive. “The size of the offer at department stores, online and physical, seems not to capture this audience well enough.”" He's right! Shoppers, especially luxury shoppers, want a luxury experience, and that's just not possible is the size of our department stores. The good news, I think, is that there are a lot of mid-market and aspirational shoppers that do still want a lot of options and a discovery opportunity, which is what our department stores would be great for. And there are so many mid-market brands that can fill the space, as long as department stores get excited again about working with lesser known designers and start giving them the terms, the space, and the support they need to thrive. But there is room here too to create more personalized and exciting luxury shopping experiences as well. Not those that feel like a museum, or just a place to admire, but places that feel fun, joyful, attainable, and welcoming - because that can, and is, luxury too. #retail #luxuryretail #departmentstores

🌟 My insightful read for this week was The Business of Fashion's recent case study, "Selling Luxury to the 1%". 🌟 It explores the way brands are re-strategizing the way they retain clients and more specifically VIC (Very Important Clients), and what keeps them coming back, at its core its about meticulous focus on curating unparalleled in-store experience and brand- consumer connections. The emphasis on in-store experiences and curating an environment of opulence and craftmanship for clients. This paves way for unique shopping experiences which are a testament to luxury and exclusivity, even inspiring clients towards becoming VICs. One cannot underplay the significance of VICs in the luxury market who, astonishingly, constitute a mere 2% of luxury customers yet drive a staggering 40% of luxury sales. Brands are creating bespoke opportunities and events tailored exclusively for VICs, such as appointment only stores, private floors or consultations with creatives to name a few. These experiences are key touchpoints with VICs and act as pivotal moments to distinguish their brand experience from the competition.   By tailoring experiences to individual preferences and affinities, brands can instill a profound sense of priority within each customer, fostering a strong sense of brand loyalty within all consumers.   I learned that, the path to sustained success in the luxury industry exceeds transactions but lies in the meticulously  cultivated relationships and experiences to associate with the brand.    #LuxuryRetail #VICs #BrandLoyalty #CustomerExperience #businessoffashion #luxuryindustry

🟠 LVMH & Hermès-backed shopping destination "Mile" launches for members only 👇 MILE by HEAT is an invite-only subscription service that offers exclusive access to curated, seasonless fashion at significant discounts. Founders Joe Wilkinson & Mario Maher are building on their success with HEAT, a popular mystery box service launched in 2019. 🔐 Members get access to a selected collection of luxury products, ranging from brand archives to current collections. Big names like Brunello Cucinelli, COMME des GARÇONS, Kenzo, Missoni, JW Anderson, Off-White, and Y/Project are featured, with discounts up to 90% off retail prices. 🧡 For brands, Mile offers a solution to manage excess inventory sustainably. It helps maintain brand equity while providing a new channel to reach consumers and offload overstock. Brands can avoid the traditional discount outlets, which can harm their image. 🛍 For consumers, the appeal is in the exclusive access and significant savings. The platform targets "seasonless shoppers" who value quality & meaning over the novelty of new releases - a shift that aligns with changing consumer behaviors (sustainability & timeless designs). 🛑 Access to Mile is invite-only. Members must apply and only a select few are accepted, which adds a cool layer of prestige & allure to the shopping experience. 💰 Mile has already brought on a roster of powerful investors, incl. LVMH Luxury Ventures, the Hermès family, Stefano Rosso (OTB Group), Burberry CIO Giorgio Belloli, MSCHF Co-Founder Dan Greenberg, Jing Daily founder Larry Warsh, among others. 🔮 With its innovative approach, Milemight become a new leading digital luxury destination. ➡️ Will we start to see more invite-only access to archive pieces, discounts and pre-loved items? 💬 #retail #luxury #innovation #fashion #ecommerce

What's causing the slowdown in luxury sales? According to recent insights shared by one industry expert, it might be due to increasing fixed operating costs. These costs may no longer be variable able to track and adjust based on market trends. As a result, luxury brands may need to re-evaluate their operational strategies to remain competitive in an ever-changing market.

Since 2019, leading luxury brands have raised their product prices by an average of 33%. This accounted for half of the sector's organic sales growth over the past two years, according to RBC analysts. However, as the global cost of living has soared, consumers have become more discerning, challenging these pricing strategies. #retail #retailing #luxury #merchandise #shopping #brand #branding #economy #sales #products

Interesting move from this LMVH & Hermes backed venture. Quite sure this will work. Also great for extension with auctions and appointment based live shoppable new inventory release shows where new inventory is shown and discussed. Discounts x Exclusive x Appointment based x Shoppable live video x Loyalty x Social Experience = Success