The luxury sector has undergone a digital transformation and is facing the challenge posed by changes in consumption: moving from a physical experience to an online one. In fact, more than 75% of Spaniards have normalised purchasing through digital channels and by 2025 it is expected that one in three sales of high-end products will be digital.
Traditionally luxury has always been associated
with a personalised, physical shopping experience. This sector, which currently accounts for more than 4% of GDP in Europe and generates more than two million jobs in the gambling database European Union , has undergone a digital transformation and is facing the challenge posed by changes in consumption. A scenario that causes the highest-quality physical experience experienced by the customer to be transferred to the digital plane, with the same exclusive and personalised attention. The capacity for innovation is one of the key tools in this sector, where digital transformation has gone from being an option to becoming a reality.
Specifically more than 75% of Spanish
Internet users have normalized purchasing through digital channels, a fact that is also expanding to the luxury sector. According to industry data, by 2025, it is expected nurture relationships with customers using lead generation that one in three high-end product sales will be digital. In this context, ISDI, a digital business school, together with Esmeralda Pérez , an expert in management and transformation of luxury brands and founder of Koru Luxury Advisor and spokespersons for LOEWE Perfumes , L’Oréal Luxe , Jaguar Land Rover and The Madrid Edition, have addressed in the round table ” Industry Series: Luxury ” how the major luxury brands have had to adapt to purchasing through new digital sales channels , how agility is a key skill to enter this environment, how they are redefining the role of physical stores and services or rethinking the customer journey.
Hybrid purchasing will continue to be present
During the meeting, the heads of each firm analyzed how. Hybrid shopping will continue to be in force and how firms should combine. The physical shopping experience with fresh list e-commerce. To this end, María Benito. General Manager of Perfumes at L’Oréal Luxe , highlighted that the importance of e-commerce has accelerated and that consumers continue to seek convenience. Which is found in the online environment, opening the door to many opportunities.
Industry series presentation: luxury
Furthermore, a hybrid trend in the luxury sector is not ruled out. For Sergio de León , Deputy Managing Director at LOEWE Perfumes , “ the channel is a factor, but the product remains essential . Specifically, no matter how well the digital channel goes for a brand, the piece or product that we offer to the customer will continue to be the trigger for achieving that final purchase .”
In the automotive sector
the experience is completely different. The search for information is purely digital. Since “ 95% of buyers have digital contact with the product. In the purchasing process.” Said Félix Olavarrieta , Marketing Director at Jaguar Land Rover Iberia. However, in this area. The distribution network still has a large analogue component and the sale. Of our luxury vehicles currently follows an RO-PO model (Research on-line. Purchase off-line) where structural changes and hybrid models are the real effect of this digitalisation.
For her part Carolina Bao
Senior Marketing Manager at The Madrid Edition , addressed the challenges of the tourism sector, which has a different way of consuming. As it is not a recurring purchase, direct online purchases can range between 10% and 20% of the share . Customers who consume luxury hotels are looking for a highly personalized experience and, for the most part, they are consumed through a third party, travel agents or agencies specialized in luxury that offer customized experiences, where the hotel is part of the destination’s attractions.
In this sector
digitalisation is experienced in a different way. Digital transformation incorporating elements such as online check-in. Home automation in rooms or the request for services. Such as breakfast, from the room itself. However, in direct purchases. The objective of bringing the human factor to the digital part is maintained. Since in-person recommendations are still sought.