{"id":162591,"date":"2019-11-25T14:50:52","date_gmt":"2019-11-25T14:50:52","guid":{"rendered":"https:\/\/www.theindustry.fashion\/why-is-mono-brand-luxury-e-commerce-so-boring\/"},"modified":"2021-08-12T14:05:34","modified_gmt":"2021-08-12T14:05:34","slug":"why-is-mono-brand-luxury-e-commerce-so-boring","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/why-is-mono-brand-luxury-e-commerce-so-boring\/","title":{"rendered":"Why is mono-brand luxury e-commerce so boring?"},"content":{"rendered":"

When was the last time you\u00a0felt\u00a0truly inspired by a luxury brand\u2019s website? Regardless of the cute little illustrations or achingly cool ad campaign flipping past, mono-brand luxury e-tail hasn\u2019t really moved on over the past decade.<\/strong> It\u2019s as though they still feel the brand is enough.<\/p>\n

<\/p>\n

People don\u2019t dress like this, and just to replicate the physical store online is to create a glorified warehouse or catalogue, which doesn\u2019t take into account the element of personality, pampering and leisure<\/strong> which makes physical shopping a pleasure for many and the reason most people desire these brands in the first place. It\u2019s not seductive.<\/p>\n

During this same time period, multi-brand luxury retailers such as\u00a0matchesfashion.com<\/a>, Farfetch<\/a> and Net-A-Porter<\/a> have grown their turnovers into the hundreds of millions of dollars thanks to their ability to tap into people\u2019s desires for newness and vast amounts of choice. These retailers are basically online fashion department stores<\/strong> just minus the fridges and toasters. People like to skip between brands and cherry pick items across them in the most efficient use of their time.<\/p>\n

Going onto individual, mono-brand websites, especially if you don\u2019t know what you want, feels like a blinkered process and like you\u2019re not getting a full view of the fashion landscape.<\/strong> It also feels, on the majority of sites, as though there isn\u2019t much on there. It is just isn\u2019t very satisfying.<\/p>\n

Last week, Farfetch Chief Executive, Jose Neves, predicted that brands would pull out of multi-brand retailers online<\/strong> and operate as e-concessions on marketplaces instead, much as they have done in bricks-and-mortar department stores. And, last year, Kering announced it would take some of its biggest e-commerce websites in house, by the first half of 2020, putting an end to a seven-year joint venture with Yoox Net-a-Porter (YNAP).<\/p>\n

Kering\u2019s online sales made up just 6% \u2013 this is against 18% of UK retail as a whole \u2013 of its \u20ac6.4 billion turnover in the first half of 2018, but it did grow by 80% in the third quarter, faster than revenue growth in department stores or its own shops. If these brands want to reflect general online retail sales, they will need to double or triple the percentage of sales coming from online<\/strong>.<\/p>\n

Taking back control of the Alexander McQueen, Bottega Veneta and Balenciaga websites will allow Kering full access to information such as client data.<\/strong> While this is great for the brands and the back-end, tech side, customers will notice little difference unless they have a radical rethink of how they present their brands on the front-end.\u00a0Consumers are used to scrolling and discount incentives to drive sales which many of these brands, outside of sales season, won\u2019t offer. It can also feel very clinical.<\/p>\n

According to a report by Deloitte: \u201cBig data may help luxury brands to provide personalized and superior customer service through consumer segmentation, behaviour and sentiment analysis, and predictive analytics. Several luxury brands, such as Louis Vuitton, Burberry, Tommy Hilfiger, Dior and Est\u00e9e Lauder, have already started\u00a0to take advantage of these technologies, using AI-powered technologies, such as machine learning and analytics, to offer more personalized and timely customer services.<\/strong> They implemented their own AI-powered chatbots and now can sell products using targeted marketing, personalization, and timely automation.\u201d<\/p>\n

In November 2018, Kering created a data science team at group level to improve the service and shopping experience of its clients. Kering intends to get real-time 360-degree view of its customers to deliver rich and personalised experiences and meet their specific needs. LVMH, doesn\u2019t break out separate online sales information, but it did reveal that the group's online sales rose by more than 30 percent in 2018. Ian Rogers, the first ever chief digital officer of the LVMH group, told Wired<\/em>, last year, that he doesn\u2019t like the word \"digital\"<\/strong> and he has the very tricky job of matching the luxury online customer journey with the pampered, indulgent experience IRL.<\/p>\n

\u201cIt\u2019s not the case that luxury shopping becomes self-serve on the internet: if I do buy something I expect a high level of service, even if I\u2019m remote,\u201d he said \u201cYou can see it's definitely strategic for us to invest in remote customer support, and it's directly downstream of our internet strategy. There's this nonsense land of digital transformation where people wave their hands and they talk in impractical terms.<\/strong> Keep drilling until you have something practical that works and then rinse and repeat. Lose these nonsense words like \u2018digital\u2019, like \u2018data\u2019, like \u2018social media\u2019. You have to get rid of this digital umbrella because it's just too broad. When somebody says, \u2018We're really behind on digital\u2019, my response is, You're behind in\u00a0every<\/em>\u00a0aspect of your business?\u2019.\u201d he said.<\/p>\n

\"Saint

Kering's Saint Laurent<\/p><\/div>\n

According to Kering\u2019s Chief Client & Digital Officer, Gr\u00e9gory Boutt\u00e9: \u201cDigital can be many different things at once \u2013 a distribution channel; a platform for offering seamless omni-channel services to clients; a driver of brand image and visibility; and a tool for engaging with customers in a personalized way. Digital technology, data science and innovation provide a way of offering our customers the best possible experience<\/strong> \u2013 on every touchpoint.\u201d<\/p>\n

Online and off-line isn\u2019t separate, most brands now offer services such as check availability, reserve in-store, make store appointment, pick-up in-store, return in-store, exchange in-store, and buy online in-store.\u00a0Kering said it would continue to develop partnerships with third-party e-commerce platforms \"when relevant\", but we\u2019re seeing the beginnings of a power struggle between brands and retailers.<\/strong> They both need each other.<\/p>\n

Now these luxury groups are focusing on their websites they need to rethink the entire thing. Their rigid \u201caesthetics\u201d and branding don\u2019t allow for personality.<\/strong> Mono-brand luxury sites are restricted by the volume of product and while it changes, it doesn\u2019t change often enough to the levels today\u2019s customers have become used to.<\/p>\n

Brands, such as Prada, Saint Laurent and Celine, also sell a lot of black, which doesn\u2019t shoot well and doesn\u2019t make the most inspiring of online images. Add in \u201ccollab. Fatigue\u201d and these brands really need to develop a new idea for websites<\/strong> if they want to increase sales and move away from multi-brand sites.<\/p>\n

Luxury brands have built themselves a boring digital straight-jacket and need to start thinking differently<\/strong>. They could offer Face Time with sales associates in people\u2019s local stores, or offer a live view way of browsing in-store and matching to items online. It\u2019s going to be about making the virtual real and vice versa. There are many possibilities, but they need to unthink the \u201cbrand\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

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