Luxury: a unique relationship with consumers
Direct-to-consumer sales via the brands’ own stores and e-commerce websites are a major growth driver for luxury beauty brands. They provide the perfect opportunity to cultivate a unique relationship with consumers, who are keen to enjoy personalised experiences and exclusive products.
Given the many challenges facing traditional department stores today, particularly in mature markets, and the growth of e-commerce platforms; direct-to-consumer sales are becoming an increasingly important strategic asset. This distribution channel includes the brands’ own stores and online sales platforms.
Stores are the new media
There are several different types of Group-owned stores: pop-up stores and events, small shops, and flagship stores that embody a brand’s image. These venues provide an ideal space for brands to engage with consumers. Stores not only offer brands freedom to express their visual identity from floor to ceiling, they also provide consumers with exceptional experiences to help them learn more about the brand, better understand it, fall in love with it, and share it on social networks. Stores have become a new kind of media. They also help brands know their consumers better; precious data collected in store for CRM enables brands to better address aspirations and improve products and consumer experience.
This is why the Division is opening flagship stores – iconic spaces for brand expression – in select major capitals. As for pop-up stores, they are designed to be full-blown events. They boost brand notoriety, particularly on social networks, where consumers can take centre stage.