According to reports, the luxury retail market expected to reach $70 billion globally by 2025. Converting from a physical store to place them as a luxury online brand is a real challenge from 2019 onwards. And, online branding should be at the core position of such brands.
Till 2018, luxury retailing has been with physical stores. But, due to a change in the industry, eCommerce is playing a top role in the sales of luxury goods. The biggest audience (30%) are millennials and young generation and considered to be the most important. The number is expected to increase by 45% by 2025 according to multiple surveys.
As the eCommerce market changes, generation is trying to adopt new ways in order to shop online. Apart from that, people are also doing extensive product research before making a buying decision on authority sites. They often search for terms like best smartphones, best earphones, best books etc on the internet to ensure the best product purchase from the internet. So for eCommerce companies to stand out and reach a huge audience they must adopt various marketing medium such as SMS, email, advertisements etc, they need to adapt to new retail technology as per the standards.
Tech will further increase more customized experience
1. Artificial Intelligence (AI)
AI is already being used to enhance the customer experience and to meet their expectations. Most of the users are relying on gadgets, tablets along with new online wallets to make the purchase decisions. AI is constantly working on to bring more personal recommendations. AI creates new tools and software which allows online brands to connect marketing mediums and CRMs, to promote on websites.
Retailers must maintain their presence in a digital way, such as providing attractive and informative images, videos, catalog descriptions etc in a rich way. Acquiring such information from their suppliers is a time-consuming task as well as manpower. Here AI comes into the picture to solve the issue of time and manpower.
Chatbots, also driven by AI, goes beyond by providing rich customer service experience which is completely automated and scalable.
2.Augmented Reality (AR)
AR is the technology works by integrating the real environment, as picked up by a device or gadget, and mediums it with digital information. AR can be used to simulate a physical store experience at home, workplace or on the go, allowing consumers to try products before they make a buy.
In the beauty world, AR is already being used to match a user’s skin complexion to makeup, hair color, and displaying choices in real time via a device.
It is not like a physical medium of retailing fade away. Customer journeys of purchase now merge online and physical store. A customer can visit a store to check out the quality and can make a purchase from online. This is the trend that is popular amongst the millennials.
However, having an eCommerce website doesn’t get you sales. As brands, you must maintain your consistency to offer the best for your buyers and consumers to provide customized shopping experience.
America’s top retailer, Walmart has worked on multiple product syndication tools to its buyers and suppliers in order to deliver the best product experience digitally on its platforms.
With technology every now and then, it is very important for retailers to always get updated and deliver the best.