Luxury Merchandising and Selling Strategies
Luxury merchandising and selling involve nurturing the dream, creating a seamless buying process, establishing relational selling approaches, and focusing on essential concepts like personal knowledge of clients. Strategies include in-store merchandising, events, and exemplary customer service to emphasize brand experiences and relationships over transactions.
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MERCHANDISING & SELLING LUXURY
THE PROCESS The brand nurtures the dream through communication Long time lapse between the dream & the purchase Pre- purchase stage dream stage
THE PROCESS Second stage Moment of Purchase The pleasure is integral to the product itself Consumer s internal experience
THE PROCESS Reassure the customer they were right to spend so much Relate the experience back to the values, heritage, & fundamentals of the brand Commercial effectiveness Let the buzz begin After purchase period
RELATIONAL, NOT TRANSACTIONAL SELLING One-to-one relationships are vital Must establish a relationship before any product is sold Sales associate must offer warmth in an impersonal atmosphere Luxury has a strong human, purely relational dimension
THREE ESSENTIAL CONCEPTS TO SELLING LUXURY Monitoring the product up to the moment of purchase Personal knowledge of the client (tastes, preferences, lifestyle, etc.) Accompanying the client so the purchase gains value over time
STRATEGIES FOR SELLING LUXURY PRODUCTS In-store merchandising Advertising Events Customer service
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES #1 way of communicating a brand s message to the consumer Presents product in context Creates a total brand experience Multisensory experience Optimal level of information In-store merchandising
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES Utmost of all retailers Salesmanship Establish a relationship, which goes beyond a transaction Personal Valuable asset to a brand s image Customer service
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES Communication Selling Exclusion of products Online luxury discounters (Hautelook, Ideeli, Ruelala, Gilt) Members only exclusive Ecommerce
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES ECOMMERCE Luxury historically reluctant to sell goods online Fear of counterfeiting Younger users far more likely to make first luxury purchase online First luxury purchase 14% of consumers 18-24 years old 9% of consumers 25-25 years old (Bain, 2018)
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES ECOMMERCE
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES ECOMMERCE By 2025, Bain predicts online sales will equal luxury brands monobrand stores as the most significant channel for luxury sales Luxury stores will lose significant market share during the same period
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES ECOMMERCE
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES Blogging Mobile apps Social medial platforms Facebook Twitter Pintrest Instagram Snapchat Social media
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES SOCIAL MEDIA Consumers are less response to traditional advertising Affluent & educated are a becoming a force on social media More than half of households with higher incomes and greater education levels are active on platforms like Facebook, Linkedin, and other social media (Pew Research). The Blackstone Digital Agency puts the number at closer to 75%. Blackstone Digital Agency Luxury companies are honing social media skills
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES SOCIAL MEDIA Using social media, luxury brands can tap into an unlimited source of clients who can pay top dollar for products & services. Affluent consumers are mostly immune to a turbulent economy.
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES SOCIAL MEDIA Through posts, blogs, and regular contact, people make an emotional connection with brands. Through contact with brands, consumers discover why the quality of the product or service is exceptional. The reward is an audience that will remain loyal to your brand for years.
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES SOCIAL MEDIA 78% of people said a company s social media posts impact their purchases. This affects the target customers and the wider online audience Social media bridges the gap between the elite and the average income earners. Most luxury brands have two different customers aspirational actual
MERCHANDISING STRATEGIES LEAD TO LUXURY PURCHASES SOCIAL MEDIA The luxury brand market threshold is lower than it used to be 96% of people making $50,000 are willing to spend more on at least one luxury brand item Many of these individuals will make smaller purchases They enhance your brand s reputation and Expand exposure to their social network.
LUXURYS HURDLES Struggling to identify what customers want Millennials have a lot of information and are very influential in the marketplace The internet and global travel have exposed pricing differences
LUXURY HURDLES Millennials desire for experiences rather than possessions Millennials access to luxury for rent Out of sync fashion cycle Democratization of fashion
2019 TRENDS Slowdown in demand from Chinese Millennials Handbags Jewelry Watches 5% growth expected in 2019 Down from 10% in 2018 France Sales disruption expected Protests Tourism
