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Restrictions on foreign travel, lockdowns and the rise and the expansion of e-commerce giants into luxury is likely to give rise to a growing number of partnerships between luxury brands and established digital retailers.
Farfetch's recent announcement, focused specifically on the Chinese luxury consumer, highlights how important this market is to premium brands.
With Singles' Day growing year-on-year as a consumer high point, the need for luxury brands to meet Chinese consumers through their preferred channels becomes even more pressing.
Consumer self-centrism is a growing consideration for retailers around the world. Meeting their needs on their terms is an imperative and even the world's most prestigious brands can't rely solely on their allure alone to sell goods.
We've already seen luxury brands begin to advance on social media channels and, as AlixPartners' Singles Day research shows, newer ways to reach consumers are growing in importance.
As Black Friday and Cyber Monday loom, the ability to serve one's consumers on their terms is critical, particularly as experience of large-scale in-store experiential shopping seems some way off in so many markets.
However, whether this is the best strategy for luxury brands long term is unclear. It may well be the case that the best performing brands in the long run will further invest in customer experience, particularly in the store. Quality, scarcity and customer experience typically define Luxury. There is always a risk of lowering the brand value when products are easily available and there is limited “brand experience”…
