A digital earthquake has been felt in the luxury goods industry, and its impact is indisputable. There’s a host of new opportunities available to brands: new user behavior, product innovations, and particularly, exceptional and innovative customer services. As Cécile Robin, Head of eCommerce EMEA at Shiseido, explains that the luxury market’s cornerstones are its services.

With expertise both in marketing and sales, Cécile Robin began her career in supermarket distribution at French retail company Carrefour, before turning to luxury. With 15 years of experience, including eight years in eCommerce at Sephora, Cécile is now the Head of eCommerce at Shiseido. She is in charge of business development for the group’s eCommerce sites across EMEA and works on eCommerce acceleration for the Shiseido Group.

Here’s what she has to share about how luxury brands can bring their history of exceptional customer experience online:

The Shiseido Group launched its European eCommerce site in October 2019. How did the launch go?

We launched six Shiseido-branded eCommerce sites in late 2019 (France, UK, Germany, Italy, Spain, and Benelux).

The crisis we’ve been going through since the beginning of the year has been a major accelerator for eCommerce. In April, we outperformed the sales figures for the entire first quarter! As with any site launch, we keep it in an “incubator” to analyze our customer journey, spot potential friction points, and find out about performance. So, we accelerated the process and developments, and now it’s a success story that we are closely monitoring because, in these unprecedented times, the rules are changing every day.

What was the aim?

Shiseido is the group’s eponymous brand! So, it was only natural that we wanted a premium, distinctive communication channel with our customers. It was a vital cornerstone in our regional eCommerce strategy. We have a clear desire to increase our digital footprint, and with this in mind, we don’t see our sites as a simple sales channel but as a window display for the brand. We aim to showcase our products, with as wide a range as possible and exclusive products, to promote our brand DNA and, of course, to offer distinctive, quality content.

So, it’s like a flagship store, but online?

Exactly. That’s our eCommerce sites’ mission. We have our products on show, but much more on top of that: previews, services, and very specific offers.

What’s changing online in luxury this year?

It is the development of decision support tools, without a doubt. This technology isn’t that new, but the crisis has accelerated its rise. With the situation we’re going through now, we can’t just try out a lipstick or foundation tester like we used to. How can brands help with this? How can we support our customers and reassure them that they’re making the right choices?

We can see an apparent increase in the use and development of decision support tools by luxury brands. Take the virtual try-on tool, for example, which is very quickly becoming more and more widely used. 

What tools do you have to teach customers more about your products?

We’ve prioritized many developments to meet our customers’ expectations of our different brands: the virtual try-on I mentioned is one of them; we have our solution, but we’re also working on online skincare diagnosis and virtual beauty consultations. You can now book a beauty appointment via Zoom. Through this online consultation tool, advisers can help our customers find the product best suited to their beauty needs. The fundamental issue is how to remain close to our clients (while still physically distanced from them), how to listen to them, and how to surprise them, wherever they may be. 

Taking that support we offer in-store and reproducing it online is crucial for the luxury industry.

Is exceptional customer service the key to luxury brands offering a unique experience?

Of course, that’s undoubtedly one of the critical points. To offer exceptional customer service that helps us stand out, we need to provide a frictionless experience throughout the journey, minimizing any frustration or obstacles. Our service has to run smoothly from the first contact right through to home delivery (if the aim is to encourage a purchase). It’s also important to support customers in their decisions (e.g., access to information, finding products, and testing) and to anticipate their questions (through FAQ pages or proactive emails about delivery, for example). Customer service must be premium too, in line with our brands’ values, but it also has to be state-of-the-art, by offering interaction via chatbot or virtual agents, for example.

How do you see the luxury market in Europe changing?

I think we’re on our way to becoming much more socially responsible. This is a requirement we’ve identified from our consumers, who are increasingly considering brands’ environmental impact. One of the prominent examples is what we use in our packaging: tissue paper, stickers, colorful high-quality packaging, etc. 

Brands are going to have to rethink their products and everything associated with them. I think there’s a great story to be told here.

Have you already launched any new initiatives on this front?

Yes, that is central to the group’s priorities and is reflected at every level: for example, we have days when employees spend their time working for charities. This approach goes far beyond the products themselves.

As far as eCommerce is concerned, if we take a look at packaging again, we’ve stopped adding printouts to our parcels, so customers no longer receive a paper invoice or returns slip, for example. The challenge is to get our consumers to accept these changes, as our value proposition is still a unique experience. Similarly, while price remains by far the most important consideration for product delivery, the top three criteria also include speed and meeting delivery times. So, communication is critical if we want to take longer with delivery for less environmental impact.

Shiseido has historically been well-established in physical stores. Has digital transformation taken priority?

The digital maturity of the Group’s brands varies from one country to another, but digital in all its forms has become a priority throughout the value chain. From expertise to investment and throughout the whole organization, every area is embracing the digital revolution. That’s what will make a difference! Being part of an international group with a presence in several countries is an incredible learning and sharing source. We have regular discussions between the different regions and brands. We have access to a vast pool of knowledge. And then, of course, we can localize and adapt. It’s a fantastic asset.

The recent health crisis has forced businesses to rethink their digital marketing strategies. To set themselves apart, they now need to use their imagination to adapt their sales channels, analyze their customer data, and evaluate their online user experience. 

The COVID-19 pandemic has unquestionably impacted many industries, including the luxury goods sector. According to consultancy firm Bain & Company, the luxury industry was hit hard; sales fell by 25% in Q1 2020, with annual sales expected to drop between 20 and 35%.

With customers adopting new online behaviors and many turning to online shopping for the first time, brands have been forced to rethink their digital marketing strategies accordingly.

But, although these major changes haven’t helped the luxury goods industry, they are still a source of opportunity. Some brands have taken a cautious route and are waiting to see how the situation evolves, while others are already experimenting with new digital strategies. 

Many companies and brands have decided to focus on their digital campaigns to boost sales and reach their consumers online. They offer more personalization and greater transparency with their brand values, recruiting data analysts, and UX specialists to set themselves apart online.

For many, this strategy is paying off: the luxury goods industry’s ability to bounce back is indisputable. According to a survey by Opinionway and Cofidis, only 69% of sales are now generated in-store, down 8% compared to early 2020. Now, online sales represent 47% of the market, having grown by 9 points since last year.

We talked to David Sadigh, CEO and founder of DLG (Digital Luxury Group), a digital marketing agency for luxury and lifestyle brands, and Jean-Marc Bellaiche, former Chief Strategy Officer at Contentsquare, about the best ways to adapt your digital marketing strategy in response to this new consumer behavior.

Adapt to Survive

The luxury goods industry has recently seen a digital revolution, which seems to be changing things for the better.

Some luxury eCommerce brands that had previously given little thought to digital marketing have adopted a proactive approach to developing their online presence and boosting their conversion rates.

“We have seen new types of behavior emerging,” says Jean-Marc Bellaiche, now the Chief Executive Officer at Printemps Group. 

“Going digital was already a major focus before the pandemic. But it’s now become the number one priority for brands. They’re all looking forways to expand their online presence and increase their conversion rates.”

Jean-Marc Bellaiche, former Chief Strategy Officer, Contentsquare

“Some sectors have used these strange times to fine-tune their digital strategies. Everything has sped up: some eCommerce improvements that would normally take two or three years have been achieved in less than two or three months,” explains Jean-Marc Bellaiche. “And brands began making plenty of changes at the beginning of the year, such as optimizing checkout, upgrading customer support tools, and cutting the number of sales partners.”

David Sadigh agrees. “Lots of brands have been testing new things and will continue to do so because if they want to survive, they have no choice,” he says. In his view, there is no shortage of ways luxury brands can adapt.

“Some luxury businesses that are lost when it comes to communication have done nothing. Others have chosen to bounce back and make the most of this opportunity to develop their eCommerce strategy by investing in more of an omnichannel approach. And brands that already had eCommerce sites have automatically profited from a migration effect: in-store or offline customers have now become online customers.”

New Communication and Sales Channels

By changing the way they operate online, luxury businesses have focused on new sales channels such as WhatsApp and Zoom to offer more personalized transactions, among other things, says Sadigh and Bellaiche.

“Many of our customers, especially in luxury watches, fine jewelry, and cars, are using WhatsApp for transactions with their customers,” Sadigh points out. “If customers already know which car they want to buy, all they need to do is ask the sales staff. WhatsApp and Zoom are similar to the services offered in China by WeChat. These trends are impacting American businesses such as Facebook, which absolutely have to integrate these new services. I wouldn’t be surprised if Facebook launched a new version of its platform, complete with video and trading services.”

Bellaiche agrees. “Luxury eCommerce sales staff have been calling their customers to show them new collections and items. Some have even delivered them to their customers’ homes. In Neiman Marcus’ mobile app, customers can talk directly to their personal shoppers about what to buy during the crisis.”

“Companies will carry on using these sales channels; they are attractive to luxury brands as they can help them offer a personalized service,” he adds.

In terms of communication, luxury brands have shown that they are innovative and have their ear to the ground. Chanel organized a concert on Instagram with the singer Angèle. The fashion brand Jacquemus asked top model Bella Hadid to take photos in her own home while wearing pieces from a collection that it was launching. These moves play an essential role in a brand’s image and make the most of new channels, especially with so many buyers being there: 74% have a presence on social networks, 32% follow luxury brands and influencers on social networks, and 70% of them admit to being swayed in their purchases by influencers’ accounts.

New Perspectives through Data 

Another crucial issue for luxury brands, and in no small measure, is knowing how to effectively use all the data available to them. This includes finding the best solutions and the most appropriate tools to improve results, particularly in terms of user experience.

For example, a brand must be able to identify why some users visit its site, browse its content, and add items to their shopping cart, while not completing their purchase.

It’s just as important to understand visitors’ intentions when they visit a site. Many go to a brand’s website to find out more about a product before leaving to buy the item on a distributor’s website.

By understanding the ins and outs of customer data, brands can optimize the digital experience they offer users and boost sales accordingly. During lockdown, businesses with a robust online presence and a wide eCommerce range saw a surge in traffic and sales, primarily due to business models that were already in place. This was particularly the case with online luxury fashion retail platform, Farfetch, which saw a 48% increase in new customers and upped revenue by 74% in the second quarter of 2020. 

Companies that had already adopted a click-and-mortar strategy were also less affected by the crisis, as they were able to migrate their market share from offline to online. These are all examples that illustrate the importance of harnessing customer data to better understand their expectations and come out of the crisis successfully.

Brand Values: Time for Transparency

Many brands have taken advantage of the change of pace in the fashion and luxury sectors to redefine their values, taking time to invest and launch the social and sustainable development projects they had in mind.

According to a July 2020 McKinsey study, consumers expect the fashion industry to prioritize social and environmental responsibility commitments during the crisis. For 67% of respondents, the use of sustainable materials is a significant factor in deciding to make a purchase, and 63% think it is just as important for a brand to promote sustainable development.

The study also concluded that although 70% of respondents have remained loyal to the brands they knew and trusted during the crisis, young consumers (especially Generation Z and millennials) are more likely to try out smaller, less well-known brands.

“It will be interesting to track these sustainable development initiatives in the medium and long term, as we know that today’s customers are more conscious about a product’s origin and of the type of company offering it,” explains Sadigh. “It will also be interesting to see if the brands supporting the Black Lives Matter movement, for example, will stay as engaged in the medium and long term.”

For brands, one thing is certain: it’s no longer enough to show a fleeting interest in something that is close to the heart of consumers and potential customers. They need to take the time to listen, learn, and invest in the causes that they want to stand up for, to be open and transparent with their audience. Being sincere about these issues has become an absolute must. Many brands have taken advantage of the change of pace in the fashion and luxury sectors to redefine their values, taking time to invest and launch the social and sustainable development projects they had in mind.

Corporate Culture Re-Imagined

For Bellaiche, the best way for a luxury brand to bring about real change within its company is to transform its culture, making it more innovative, agile, and collaborative. The “try, fail, learn” concept is a good example to follow. For instance, A

mazon tried mobile phones and failed, but the company learned enough from this experience to successfully launch Alexa and Prime Video.

“Businesses need to be agile. If they have a well-oiled supply chain and sound customer knowledge and data, they will be better positioned to meet the challenges of this new era.”

David Sadigh, CEO and founder of DLG

Sadigh cites Moncler as an example. The company has adopted a digital-first approach within its organization by managing its online business directly, in-house. 

Moncler has prioritized contact by implementing pioneering solutions to change its corporate culture. Its Energy Plan program encourages teams to meet at least once a day and its private, staff-only @Monclertogether Instagram account to organize various employee activities.

Culture can even go beyond strategy, as Bellaiche explains. “One of the most important lessons of my career as a consultant and leader was a quote by Harvard Professor Peter Drucker: ‘Culture eats strategy for breakfast.’ Corporate culture is more important than strategy alone because it defines your ability to react during good times and bad. Luxury businesses have to seek out new talent, especially from start-ups, which can innovate, collaborate, and react quickly.”

The luxury industry can be a tough puzzle to decode as far as user experience (UX) is concerned. The lavishness of the industry is clearly presented in the messaging of luxury brands. But underneath all that glitz and glamor lies a very serious issue for brands, one that ultimately affects their conversions: user experience on their digital platforms.

You’ve read correctly. Even the top dogs in luxury retail have to contend with UX optimization if they want to forge ahead. They have to engage their site visitors every bit as much as non-high-end industries like grocery, cosmetics, gaming and general fashion.

A lackluster digital experience on a luxury website will be reflected in the key performance indicators of luxury businesses. It will doom a business’s swath of KPIs with underperforming ROI.

So what can luxury brands do to improve their digital experience? We consulted with three influencers in the multi-faceted vertical of luxury to weigh in on how its UX can improve. From what ticks them off, to how brands can perfect their UX, we’ve garnered a bundle of insights from these three content creators in the luxury space.

Desktop or Mobile: What is the Luxury Device of Choice? 

User experience starts with the preferred mode of entry to a website; in this context it’s the device used. We spoke with three influencers in the luxury space: Patrick Van Negri, a content creator and social media influencer who operates his namesake website, which provides lifestyle content on fashion, travel, fitness and more. 

Aftab Pathan is an influencer in the luxury travel  space, who documents his traveling adventures on his website Fresh & Fearless. The site offers insight on the places he’s visited with suggestions on the activities and services of his sojourns.

Marie Olin runs Luxury Travel Diva, a website in which she shares her luxury travel adventures and advice on a bevy of worldwide destinations. Her trips span across Asia, Africa, the Middle East and Europe and her posts review exclusive properties, along with covering travel tips for those seeking extraordinary experiences. 

In the ongoing digital battle of desktop versus mobile, each of our interviewees gave their own takes, demonstrating that even one’s own preference on device usage isn’t always so clear-cut. Patrick made the case for desktop, because of faster load times, a higher-resolution screen and better control of the experience. However, he admitted that he’s been increasingly shopping on his phone, shining light on the potential of mobile conversions, which are unambiguously low. According to our industry benchmark data, the luxury conversion rate on mobile sits at a meager 0.62%, despite its healthy traffic rate of 66%.

While Aftab generally prefers using his laptop, he admitted that a lot of his shopping was done on-the-go. “I don’t always get time to sit down to shop, so I often find myself scrolling through my favorite fashion apps in preparation for my next travels,” he told us. “Especially as I thrive on looking my best when traveling.”

Marie opts for desktop, proving that this device is still a strong digital contender when it comes to digital shopping, even in a mobile-first world. A computer, she reasoned, allows her to “blow up the photos and see the products more easily.” 

Courtesy of Patrick Van Negri

Pet Peeves in the CX of Luxury Retail Sites

When we asked our three influencers to name some of their pet peeves on luxury sites, their answers pointed mostly to a dissatisfaction with the products themselves; or more to the point, with how they are presented. For Patrick, one cause of annoyance is “making sure the size is correct and how the product feels once you have it in your hands.” 

So how can this be rectified through changes to the CX? Brands should offer clear photos of the product in clear lighting, so that once the customer has the product, it doesn’t fall outside their expectations. Making sure you add clear size and size comparator charts will also go a long way to reassuring visitors. And if your brand has a presence in more than one country, consider helping your customers navigate different sizing standards so they can easily find their fit. 

One of Marie’s biggest peeves is missing out on a bargain because her size has sold out. Notifying visitors of low stock is a good solution to this problem, as well as providing the option to be notified once a sold-out item is back in stock.

Patrick, like many other shoppers, hates “going back to the post office for a return or exchange.” This is another area where retailers can make a difference: a pain-free return policy is today a key component of a positive experience.

Aftab chimed in with a joke, referring to the obnoxious prices in luxury. But while one of the defining characteristics of luxury is that the prices are as exclusive as the products, it’s interesting to note that some brands are adopting a “pay what you want” strategy on certain products, giving customers greater control of the shopping experience.

In earnestness, he referred to the lack of diversity from certain luxury brands as worrisome. It seems that, when it comes to inclusive marketing and campaign diversity, many luxury companies are lagging behind more mainstream retailers.

Courtesy of Fresh and Fearless

Courtesy of Fresh and Fearless

The Digital Luxury Experience, Best Sites & Apps

But while they had great insights to share on the experience gap, our three interviewees also pointed out that some luxury brands are really getting it right. Patrick singled out GQ, Farfetch, Nordstrom, and Dolce & Gabbana. “I love the style inspiration, user experience, and the info I get prior to my purchase,” he said.

That’s why digital teams ought to consider the weight of the content when designing their UX, as it can resonate with users so much so that it leads to a purchase. The purpose of content, after all, is to not only grab attention /entertain but to establish connections that resonate. 

It’s not surprising then that brands invest heavily in content to boost ecommerce conversions. But according to our data, 68% of luxury content never gets viewed, putting tremendous pressure on the  32% of content visitors are interacting with.

Aftab credits Mr. Porter as his ultimate luxury app and his partiality for this brand highlights the need for and positive outcomes of a mobile-first approach to UX. “It gives me all the latest luxury fashion essentials right to my phone, without needing to browse through various sites and spend hours finding my size,” Aftab said. “It stands out to me because it provides luxury fashion tailored towards men, and there aren’t many online stores like them, or with an app,” he concluded.

For Marie, a seamless navigation, one that shortens the path to product, takes center stage in her choosing of favorite luxury site, as well as the ease of making returns and quick order reception. “I love net-a-porter.com, she said. “It has some great designers, the site is easy to navigate, orders are sent quickly and no quibble returns. Aesthetically pleasing too!”

Courtesy of Patrick Van Negri

The UX of Luxury Travel 

The luxury space is not limited to luxury retail or shopping; plenty of brands render niche offerings that obviously deal with the digital space. Since Aftab and Marie are both laser-focused on the travel niche in the luxury space, we grilled them on this subsector.

We begin with their more high level takes on luxury travel: what the best parts of it are. Aftab praised personalized service and luxurious interiors, doubling down on the former by noting the importance of “attentive service” in one sentence. 

And personalization today is an omnichannel affair — consumers want tailored experiences both off and online. Behavioral analytics allow brands to deploy a deeper personalization strategy than ever before, one that takes into account more than just demographic data and enables meaningful experiences tied to context and intent. 

Additionally, he raved about “my one true love, branded bathroom amenities. Nothing makes me happier!” Providers in luxury hospitality take note.

Marie also ascribes the scenery as the highlight of luxury travel, along with other particular likings. “My favorite aspects of luxury travel are obviously luxurious surroundings but just as important are the staff,” she said. “Luxury travelers want to have everything running smoothly and have competent and polite staff. A Butler is my favorite treat in a top hotel.”

Zeroing in on the UX of luxury travel itself, Aftab cites the need for wish list function for a smoother, more convenient UX.

“I would like to see more travel sites allowing you to save packages and bookings in the form of a “wish list”, the same way you can on many fashion sites. Sometimes you don’t want to book the flight, hotel or both instantly, and want to revisit it at a later date (and for the same price!)”

Whether it’s to avoid longer bookings or to have easy access for a later session, the use of a wish list is crucial, and as we’ve seen in previous research, the converting power of the wish list is proven.

Marie goes for a more general rule of thumb for luxury sites that look to improve their UX, stating the necessity for user-friendliness. She pointed to the specific examples of attaining this: by providing up-to-date information with appealing and functional (clickable) links.

Luxury travel providers, especially those in hospitality, should also make specific types of hotels or other sojourning options readily visible, perhaps with left-hand navigation categories. This is because finding them can be as struggle for users — inevitably leading to their frustration. 

Aftab attests to this: “I’m very specific about the kind of hotels I choose for my travels. Often enough, I find it difficult to find a five-star hotel that fits my “vibe”, which is suitably located, and includes all the amenities/services I require during the dates I want to travel,” he said, following with a jest — “I know, total first world problems!” 

Marie’s biggest frustration in booking luxury travel stays is difficulty in navigation, particularly when there’s “too many boxes to tick!”  Additionally, a poor UX for her involves the insistence on certain dates of travel. She suggests luxury travel sites show an entire month of prices per one page for both convenience and even affordability. This is so — in her own words — “I can go on the cheapest date! Luxury travelers like a good deal.”

Courtesy of Luxury Fashion Diva

Courtesy of Luxury Fashion Diva

Advice for Luxury eCommerce Retailers and Content Creators

Lastly, we sought out advice from these influencers for luxury retailers in the digital space and content creators alike. 

According to Patrick, creativity and originality are at the helm of an optimized user experience. Creators need to be able to find their own voice and style and steer clear of duplicating what other content creators do; if they don’t avoid the latter, it’ll stunt the growth of their brand (whether that’s a business or their own media presence).

“Just like any other content creators, stay authentic because that is the only asset you have. Also, do not try to copy what other influencers are doing. You will look cheap and unoriginal, and your potential to grow is non-existent,” he said.

He closes off with: “Innovate and do not be afraid to try new things and concepts, even if they scare you and the risk is too big. That is the only way to stand out and get ahead of your competition.”

“Don’t ever start content creation for the sake of earning money or getting “famous”, it defeats the objective of being a genuine, and sought-after content creator,” he said. “And when it gets tough, or you lose inspiration, remind yourself why you started. Let your creativity run wild!”

Alongside focusing on community-building and common interests, Aftab also believes in the need to have a unique offering, whether that be in sales or content:

“If I had to share one piece of advice, it would be to be completely true to yourself. It’s easy to get consumed with what other luxury content creators are doing around you, but the main thing is that you create content that fits your brand, aura and truly allows your personality to shine through.” 

As they deal with the subject of luxury, Marie suggests that content creators in the luxury space make the content itself luxurious. “Make the content really luxurious, stand out from the ‘ordinary’, be extraordinary.”

Furthermore, she advises on the need to appeal to the target market, meaning those most apt to buy, or at least take interest in the luxury space.  “Someone recently commented that my website was luxury and not for ‘ordinary’ people. This made me happy because I aim to target the luxury market!”

Closing off, she proposes that luxury travel sites ought not forget the older travel market. “Remember the older travel market!  We are the people with time and money to spend on luxury trips. Older travelers want luxurious Business Class flights, top class accommodation,” she said.