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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

How is technology revolutionizing the luxury retail industry? From digital catwalks, creating a seductive spectacle in stores, and using technology to change how we engage with brands, retailers are finding clever ways to use technology. #retail #luxuryretail

How is technology revolutionizing the luxury retail industry? From digital catwalks, creating a seductive spectacle in stores, and using technology to change how we engage with brands, retailers are finding clever ways to use technology. #retail #luxuryretail

How is technology revolutionizing the luxury retail industry? From digital catwalks, creating a seductive spectacle in stores, and using technology to change how we engage with brands, retailers are finding clever ways to use technology. #retail #luxuryretail

How is technology revolutionizing the luxury retail industry? From digital catwalks, creating a seductive spectacle in stores, and using technology to change how we engage with brands, retailers are finding clever ways to use technology. #retail #luxuryretail

How is technology revolutionizing the luxury retail industry? From digital catwalks, creating a seductive spectacle in stores, and using technology to change how we engage with brands, retailers are finding clever ways to use technology. #retail #luxuryretail

As we step into 2024, the landscape of luxury retail is undergoing a fascinating transformation. Leaders in the field, Geoffroy van Raemdonck of Neiman Marcus and Marc Metrick of Saks Fifth Avenue, are guiding their brands through these evolving times with strategic finesse. Let's dive into their insights and strategies in this ever-changing luxury e-commerce world. In the recent past, Neiman Marcus faced financial turbulence, filing for bankruptcy in 2020. However, under van Raemdonck's leadership, they emerged with a leaner structure, shedding a significant debt burden. This challenging period led to a strategic shift, moving from transaction-focused to relationship-driven customer interactions. Today, with a robust balance sheet, they're making big moves: investing in supply chains, opening new distribution centres, and pouring $200 million into store enhancements. Saks Fifth Avenue, under the HBC umbrella, took a different path in 2021, splitting its e-commerce and physical store businesses. This bold move mirrored the broader industry trend of digital transformation, albeit with some hurdles like workforce reductions. Despite these challenges, Metrick emphasizes Saks' continued focus on profitability, a critical factor in an industry where many peers struggle to balance growth and earnings. Both leaders agree: the digital disruption of luxury retail is inevitable. E-commerce has transformed the way luxury items are bought and sold, but profitability remains a key challenge. In this context, van Raemdonck highlights Neiman Marcus' omnichannel approach and curated product selection as their strengths. Personal relationships cultivated by their sales associates also play a vital role in their strategy. Metrick, on the other hand, points out the evolving dynamics of consumer behaviour. The luxury market is experiencing a shift, with promotions becoming the norm and consumer expectations evolving. Saks is navigating this change by understanding their customers' preferences and leveraging technology to offer a personalised shopping experience. Both brands, Neiman Marcus and Saks, are focusing on unique strategies to fortify their positions in the luxury market. Neiman Marcus is banking on exclusive partnerships and distribution deals, while Saks is exploring new avenues to connect with customers, like tapping into the sports-luxury intersection. As we witness the 'natural evolution' of luxury retail, the focus for industry leaders like Neiman Marcus and Saks is clear: adaptability, customer-centricity, and strategic innovation. These brands are not just selling luxury items, they are crafting unique experiences and forging deep connections with their customers. And that, perhaps, is the true essence of modern luxury retail.

🚨 𝙇𝙪𝙭𝙪𝙧𝙮 𝙧𝙚𝙩𝙖𝙞𝙡'𝙨 𝙑𝙄𝘾 (𝙑𝙚𝙧𝙮 𝙄𝙢𝙥𝙤𝙧𝙩𝙖𝙣𝙩 𝘾𝙡𝙞𝙚𝙣𝙩) 𝙙𝙞𝙡𝙚𝙢𝙢𝙖 🚨   🌟 Ever heard of the golden rule in luxury retail? That 80% of business comes from just 20% of clients? Yep, it's practically a mantra in the industry.   And guess what? Many studies shows that the 80/20 rule stands strong. But here's the twist...   In a bid to cherish these top 20% customers, many luxury retailers roll out the red carpet with VIC programs. Sounds great, right?   😱 But here's the catch - 𝘀𝘂𝗰𝗵 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗿𝗲𝗮𝗹𝗹𝘆 𝗼𝗻𝗹𝘆 𝗰𝗮𝘁𝗲𝗿 𝘁𝗼 𝘁𝗵𝗲 𝘁𝗼𝗽 𝟭 - 𝟮% 𝗼𝗳 𝗰𝗹𝗶𝗲𝗻𝘁𝘀.   This leaves a huge gap - 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝟭𝟴%, 𝘄𝗵𝗼 𝗺𝗶𝗴𝗵𝘁 𝗮𝘀 𝘄𝗲𝗹𝗹 𝗯𝗲 𝗹𝘂𝗺𝗽𝗲𝗱 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗿𝗲𝗺𝗮𝗶𝗻𝗶𝗻𝗴 𝟴𝟬%. There's a gold mine of opportunity here for retailers to dazzle this 'high-value middle' crowd, who are just yearning for some extra special treatment.   🎯 It boils down to a balancing act between scaling and personalizing. 🤔   👉 Have you come across any retailers who've cracked this code, offering unique experiences to their not-top-but-still-crucial 18%? Drop their names below!   Let's turn this challenge into an opportunity! #retail #fashion #fashionretail #luxury #luxuryfashion #luxurystore #luxuryretail #scaling #personalization #customerexperience #xpai

Why Luxury Brands Should Consider Making Each Store Unique

On the importance to create luxury in-store experiences, to create a relationship for a lifetime rather than an immediate sell - the renaissance of physical retail after the e-commerce boom: https://lnkd.in/eT6Bh7DK