The luxury market landscape is changing. Millennials are set to account for 40% of customers by 2025 with Gen Z in hot pursuit.
Today, luxury brands must adapt to the desires of modern consumers while sustaining their timeless allure. Yet with challenge comes opportunity — and it has never been easier for innovative luxury brands to truly stand out from the competition.
Here, Claudia Sivori explores how investment in people holds the key to success.
Personalising the luxury experience
The luxury brand experience has never been characterised by a single trait — it’s a truly multifaceted blend of tradition, quality, creativity, pricing and exclusivity.
Brands that prioritise personalised customer experiences will better stand out from the competition. A true purchasing ‘experience’ reaffirms the brand’s ‘luxury’ image — and offering the personal touch can help you to deliver a memorable moment that transcends a one-off purchase.
We’ve seen this from a number of luxury brands, including Chanel’s in-store ‘VIP’ treatment services (which includes complimentary refreshments) and Gucci’s ‘client service centres’. Part of its Gucci 9 offering — which is “designed to provide the best and most reliable customer experience, even at a distance” — Gucci aims to provide customers around the world with “a direct link with our community, creating a continuous, always accessible experience”.
This approach requires well-trained, skilled and motivated people to be successful. Sales teams need to have deep knowledge of your products, the ability to tailor communication to each customer and high attention to detail. They must also live and breathe your brand.
By investing in people, luxury brands can ensure that their teams:
- are adept at understanding the needs of each individual customer
- deliver memorable experiences that exceed expectations
- foster authentic connections and brand loyalty.
Consistency and contracts
Yet all this means little without consistently providing this same level of experience to customers. Consistency can be a powerful tool for reinforcing brand identity once a positive first impression has been made.
Brands must ensure that their standards are clearly communicated to all employees. However, it may also be beneficial to reinforce this by including contractual clauses that stipulate expectations around customer service, as well as any presentational requirements like dress codes and appearances.
Attracting and retaining people
Effective recruitment and development schemes are critical — and luxury brands that engage in cross-cultural training to foster a diverse, inclusive and sensitive environment could have a competitive edge in terms of both hiring and retaining the best people.
This can be supported by offering avenues for professional development, implementing recognition and benefits programmes and maintaining a positive work culture. To navigate the competitive job market, luxury brands must foster a continuous learning environment where the development trajectory is transparent — especially to young talent.
Employees that feel supported and appreciated are better able to deliver exceptional experiences for both customers and their team members — cultivating brand loyalty.
Talk to us
If you’re looking to bridge the gap between accessibility and luxury, our retail team can help. We’re experienced in helping luxury brands navigate all types of employment law challenges.
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