Greetings retailers and welcome to another edition of Retail Details: Your one-stop source for all the latest tips, trends, and news in the world of retail. Today’s installment will feature the following: highlighting 4 emerging luxury E-Commerce Markets, retail renovation advice, and 5 tips to increase word of mouth.
Historically, the luxury retail industry has been slow to adopt e-commerce, however things are changing as about 60% of luxury brands now sell online, a large increase from the past few years. Brands are learning that today’s new generation of luxury customers are younger, digital savvy, pressed for time and above all very practical. This has seen a much larger growth in the luxury e-commerce industry than many other sectors. Here are 4 markets that are largely untapped by the online luxury industry, have strong economies, and a demonstrated appetite for online shopping.
The country is already the world’s second largest luxury e-commerce market, and recent economic growth has bode very well for the market. Reports say the luxury e-commerce space here will hit $25 billion this year. And despite all this potential, there’s not much competition in the market, showcasing this point is the fact that only 30% of the 500 leading international luxury brands have a presence in India.
Iran’s e-commerce industry has thrived for years, but due to economic sanctions it has been in a self sufficient state. As the sanctions are lifting, there is a huge opportunity for first mover luxury brands to get there foot inside the market early and win big.
With luxury expenditures of $2.5 billion, Thailand represents the largest luxury goods market in Southeast Asia. This is attributable to low housing costs and high disposable incomes, as more than 20% of the population earn more than 150,00 annually. These consumers are between the ages of 30-34, which are prime targets for luxury spending. These figures combined with robust internet penetration (nearly 55%), and a mobile adoption rate of 150%, you’ve got a market primed for luxury e-commerce engagement.
While other nations are still struggling with sagging economies, Poland is not. This year, Poland’s luxury expenditures will hit about $3.4 billion, while overall e-commerce spending will grow to $12 billion, indication a clear opportunity for luxury e-commerce.
The process of renovating a store can be extremely nerve-racking for any retailer. However an enriched in-store experience can help you rise above the competition and take your business to the next level. Here are 5 things to consider while renovating your store.
1. What Will Success Look Like
The first and most critical step is to think carefully about your goals, such as setting an ideal return on investment. For reference, on average you can expect somewhere around a 30% increase in sales.
2. Keep Your Customers in Mind
A study by Deloitte recognised that most successful renovations rely on effective consumer research, and in this day in age there are seemingly limitless amounts of consumer data available. Retailers should utilize that data to avoid imitation and offer experiences that align with the beliefs, attitudes, values and shopping habits of their customers.
3. Engage the Senses
Recent studies have shown that atmospherics are possibly the most important environmental factor in translating consumer demand into purchases. Stores that engage consciously with a range of senses, utilising colour, lighting, music and even smell, will have a much more profound impact on shoppers.
4. Leverage New Technologies
A 2014 report from Merchant Warehouse revealed that close to 70% of consumers engage in webrooming, which is the act of researching an item online before visiting the store to purchase it. Retailers can also leverage the data collected through beacons, RFID tags, and cameras to influence design decisions.
5. Don’t Neglect Your Backrooms
The previous 4 tips given have focused on giving customers the best possible in store experience, however giving your employees an inspiring work environment is equally as important. First you must ensure your backrooms are properly equipped (i.e. adjustable shelving systems), next simply ensuring that the lighting and temperature is right, or introducing some greenery, can also result in large productivity gains.
Word of mouth is the holy grail of marketing, here are 5 ways to increase your WOM.
- Offer Exceptional Products- Invest in your merchandise, use high quality materials, and highlight how your products are superior to others
- Spell it out for Customers- Remind people to spread the word about your brand, this can be done through in-store prompts
- Identify and Engage Brand Advocates- Identify key individuals who are most likely to recommend you to their friends, and then reach out to them
- Run an Influencer Campaign- Find the people that your customers are listening to and use their platform to spread the word about your brand
- Build communities- Getting people together through events, clubs, and whatnot can organically generate word of mouth
Thank you for reading another issue of Retail Details! We created this series to provide key insights on the world of retail and help every retailer from small to large be at its best. For more tips, tricks, and trends, sign up for our Newsletter and connect with us on LinkedIn & Pinterest.