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Luxury

Luxury and digital a mismatched couple ?

Luxury and digital a mismatched couple ?

The distribution of luxury brands is evolving day by day. The development of e-commerce and digital by the biggest brands in the sector has modified the buying process of customers. Indeed, they are no longer required to go to a boutique to buy a Dior bag or a Tiffany necklace costing more than $100,000. This shows the evolution of luxury that we all know, before the Covid crisis. A luxury that no longer exists totally. 

LUXURY AND DIGITAL

1 word, luxury. What does it mean to you? Luxury is something expensive that is pleasant to have but is not necessary. The interesting thing about luxury is that it remembers something different in each person. Luxury is defined by Geert and Veg-Sala as “a way of being, a way of living, but also a way of buying, consuming and using”.

            2nd word is digital. Yes, in 2023, everyone knows what digital is. We use it in our daily life, with smartphones and social media.

When we put them together, the luxury and digital, it is not working, like a mismatched couple. Luxury is rarity and refinement, digital is profusion, free and standardization. It is avant-gardist by essence. Indeed, they were never supposed to meet. But it happened. Beyond the intrinsic utility that emerges from a luxury good or service, today’s consumers are indeed looking for experiences that are meaningful to them and that could give them pleasure. This is where digital comes in.

DIGITALIZATION OF LUXURY

Due to the Covid crisis in 2019, luxury industries have accelerated their digitalization. Even during a hard time between 2019 and 2020 luxury industries gain on their digital maturity. Online shopping represents more than 37% of luxury sales in 2021 because they were able to change and review their business model. Antonio Carriero from Breiling said: “Before Covid, e-Commerce was considered the icing on the cake, since then it has become the cake.” This clearly shows the impact of digital on luxury houses, it changed their mindset about digital.

Indeed, luxury houses previously felt a sense of incompatibility between their values and those related to the digital age. They have to find a good balance between the scarcity of their houses and the universality of digital.

RSISING OF WEB 3

With Web 3.0, data is no longer centralized on servers belonging to companies. It is decentralized and held by a community to which the user belongs. It is the principle of the blockchain that makes this possible. Indeed, blockchain reinforces the notion of digital trust. Pioneers in this field, crypto-currencies rely on this new technology, allowing financial transactions to be carried out outside the conventional banking circuit. But the potential applications of blockchain go far beyond virtual currencies.

This “new” internet has as master words, ownership, community, emotion, and immersion. It is also the new playground for luxury companies.

Web3 questions the nature of luxury, are we seeing the birth of a new luxury? The expressions of the luxury/digital couple have evolved according to the trends. First, luxury and digital are two different elements that everything opposes. The digital luxury, symbiosis and interdependence are established to arrive at Luxury 3.0 no difference between the two. Luxury 3.0 enriches traditional luxury with its new technologies.

Shared values of luxury and the Web3 Eric Briones, Luxury and Digital p.24)

Web 3 is a new digital war; the war for attention beyond the product. Identity of luxury origin: go to meet customers in stores that are all different “one boutique, one story” present its products, touch, feel and make the customer live an extraordinary experience that they will remember for life. To keep a product for generations and generations.

 

If you wish to learn more about Luxury and Digital, click here. 

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Luxury

Luxury & Digital, the new luxury territories

The new book of Eric Briones : Luxe & Digital

Les nouveaux territoires du luxe

 

Who is Éric Briones ?  

Éric Briones is a recognized specialist in the luxury industry, and more specifically in the consequences of digitalization on this sector. In 2017, he founded “Darkplanning“, a strategic planning firm dedicated to the luxury, fashion, and beauty sectors.

He has worked for nearly 20 years in the luxury, fashion, and beauty industry alongside the biggest brands (Hermès, Le Printemps, L’Oréal Luxe, Vuitton, LVMH, Chanel, Boucheron, etc.).

Also known as an author, he co-wrote the books Luxe & Resilience (January 2021), Le Choc Z (January 2020), Luxe et Digital (March 2016), GenY et le Luxe (January 2014), published by Dunod.

As a speaker and innovation expert in the luxury and premium sectors, his presentations are appreciated for their spectacular and avant-garde dimensions.

He notably addresses the following topics:

– the digitalization of the luxury, fashion and beauty industries and its challenges

– learning to decode Generations Y and Z

– how to reach the male target in the luxury, fashion, and beauty sectors

Luxury and Digital, the new territories of luxury 

Towards luxury 3.0 and beyond! The book puts us back in the context of the covid crisis.

March 2020, not a shadow of a customer in store. With their foot on the gas pedal, luxury brands are rushing to pursue their online exiled customers and take the digital turn. They are heading for a new territory full of hope, the web3.

This book deals with the main topics related to the web. On the program NFT, metaverses and blockchain. Eric Briones makes us understand that nowadays, imagination is the only limit.

Digital transformation is everywhere, affecting all sectors, including luxury. This book looks at digital luxury and proposes a vision so that everyone can find the right path to thrive in this great chaos called digitalization.

The first part proposes a shock therapy to eliminate digital complexes, and then looks forward to a near future, that of Postdigital luxury. The second part of the book is a collaborative effort involving 14 experts (influence, big data, China, social commerce, retail, e-advertising, product content, experience, transformation, and customer journey), each of whom takes stock of the current state of their profession and proposes concrete solutions for transformation.

The sector’s spectacular rebound. New practices and concepts are emerging every day and touch points are multiplying, creating a wealth of opportunities for the meta luxury ambition to become a reality. The demands of personalized, intuitive customer experience but also engaged, sustainable and transparent. Are the new performance indicators of this luxury 3.0

My opinion

I found this book very inspiring and innovative. We understand how luxury, which was running late in terms of digital has become in a short time in advance. Which constantly proposes new ways to capture its audience.

What I also appreciate is the variety of contributors, no less than 34 big names in digital and luxury are present. They give us their experience with web3.0 and their aspirations for the future.

To conclude, I would like to share a quote from Antonio CARRIERO Breiling, “Before Covid, e-Commerce was considered the icing on the cake, since it has become the cake”. We understand that luxury is constantly evolving. The limit is the imagination.

If you missed the first volume of Luxury & Digital published 2021 click on this link to discovre more. 

You can find lives with Eric Briones and luxury experts on the Journal du Luxe’s LinkedIn!

The last one on December 14, special report and outlook for 2023.

Sources

https://journalduluxe.fr/fr/business/journal-du-luxe-linkedin-bilan-futur-perspectives-2023

https://londonspeakerbureau.fr/conferenciers/eric-briones/

https://www.dunod.com/livres-eric-briones-dit-darkplanneur

https://www.babelio.com/auteur/ric-Briones/69735

 

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digital art Digital Business Fashion Luxury Marketing Strategy UX Virtual Reality

Gucci, the luxury pioneer in the Metaverse

Gucci, the luxury pioneer in the Metaverse

The Italian luxury house has chosen to invest in the new territories of luxury that are the Metaverse and NFTs. Indeed, the Group is undertaking numerous initiatives in Web 3, as illustrated by its collaborations with SuperPlastic, its private parties for its NFT holders, its creation of academies dedicated to gaming or its creations with digital artisans.

On the other hand, the Kering Group house has presented several NFT collections, sometimes made with artists, to feed its new Web3 exhibition space. In June 2021, Gucci presented its first NFT collection to celebrate its 100th anniversary. This collection was titled The Next 100 Years of Gucci and was made in collaboration with SuperRare Gallery which specializes in crypto art.

Afterwards, Gucci came up with a new NFT collection including GIFs, in collaboration with 11 artists such as Tyler Spangler, in order to develop the brand’s image in the NFT world. You can access this collection by clicking on this link: https://vaultartspace.gucci.com/gallery/room

Finally, the Group has launched an experimental space for NFTs in The Sandbox, which is a Metaverse platform where users can create, buy or sell clothes as NFTs. The firm offers a virtual store with a collection of luxury clothing and accessories to dress up its users’ avatars. Gucci was inspired by Nike and Adidas who have already invested in this platform. Nevertheless, the Italian brand becomes the first fashion company to enter this universe.

Reading these initiatives taken by the firm, we realize that Gucci has clearly taken a strategic shift in terms of digital and choosing to invest in new platforms.

All of the above actions are designed to foster a sense of exclusivity within Gucci’s digital community. Indeed, it is common for the brand to propose new collections that are made available to its NFT community first. On the other hand, it allows the brand to better promote itself and its history. Finally, it allows the brand to revolutionize the experience it offers to its customers, as will be developed in this article. This phenomenon affects the majority of luxury players, not only Gucci.

 

Luxury Brands’ digitalization

Gucci’s example is not an isolated case. Indeed, the luxury sector has always sought to extend its points of contact, especially since Covid has accelerated the digitalization of its luxury brands. Luxury is therefore a sector that is constantly reinventing itself.

Today, the Metaverse and NFTs are at the heart of the strategy of the luxury industry. Indeed, many luxury houses such as Givenchy, Louis Vuitton or Dolce & Gabbana have chosen to launch themselves into these new Universes. The example of the French leather goods house Louis Vuitton is particularly striking. Last year, the Group launched a video game called Louis: The Game to celebrate the 200th anniversary of its founder, which included 30 NFTs created with digital artist Beeple. In addition, the luxury house is a partner of the famous video game League of Legends and has created skins in its image for the characters of the game. These examples show that Louis Vuitton, and more generally luxury brands, are seeking to establish themselves in the Metaverse and NFT universe, as this provides them with numerous advantages.

 

New ElDorados for brands  

These new Universes are therefore emerging in the Luxury sector and constitute new ElDorados for brands. They constitute a way for these brands to maintain and strengthen the link between them and their consumers.

On the other hand, these Universes are levers for engaging brand communities, creating new points of contact, rethinking the customer experience and reaching new audiences such as Generation Z.

 

Sources

https://journalduluxe.fr/fr/mode/gucci-pre-commandes-nft

https://www.larevuedudigital.com/comble-du-luxe-gucci-propose-des-oeuvres-virtuelles-nft-creees-avec-des-artistes-synthetiques/

https://journalduluxe.fr/fr/mode/louis-vuitton-jeu-nft

https://www.laplume.mg/blog/actualites/metaverse-marketing-digital/

https://www.journaldunet.com/media/publishers/1505507-conquerir-la-generation-z-c-est-maintenant/

https://blog.smart-tribune.com/fr/enjeux-experience-client

 

 

 

Categories
Analytics Business Culture Food Human Lifestyle Luxury Marketing

French people and wine

With more than 44 liters consumed per person per year, and although the trend is downwards, France is the country where people drink the most wine after the Vatican and Andorra (source: Wine Institute). Thus, for many consumers, September is synonymous with the start of the new school year, but also with good deals at the Wine Fairs!

Categories
Gaming Luxury

Fortnite x Ralph Lauren : The new phygital partnership

FORTNITE X RALPH LAUREN

– This is the first collection you can wear both on Fortnite in the metaverse, but also in real life!

Discover Fortnite X Ralph Lauren

After Balenciaga, Aramani or Burburry, it’s the turn of the New York luxury house to make its grand entrance into the metaverse. The brand is boosting its presence in web3 by the collection Fortnite x Ralph Lauren and is getting closer to the ultra-popular video game Fortnite. 

The emblematic and preppy brand has launched a collection of clothing and accessories, available both on the video game Fortnite with new skins and in a physical version on the Ralph Lauren’s website from November 5.

Called “Polo Stadium“, the collection will consist of two skins inspired by the “Stadium” and “Polo Sport” range from the 90s.

The partnership builds on the company’s “belief in the power of the metaverse,” a new way for the brand to engage with a more connected audience.

Reinvented for the metaverse, this sports line is the result of working around Ralph Lauren polo shirts based on the uniforms worn by American athletes in the 1920s and 1930s. “Ralph Lauren’s iconic ‘Polo’ design history, combined […] with Fortnite’s unmistakable style, has resulted in an inspired campaign and timeless looks that Fortnite players around the world are sure to love,” said Adam Sussman, president of Epic Games, the company behind the free-to-play role-playing game.

Visuals of the collection :

Caps, polo shirts, hoodies … The physical capsule Ralph Lauren x Fortnite, is the result of the new colorful version of its logo, the “Polo Pony“, especially designed for the occasion by Ralph Lauren.

To celebrate the launch, Ralph Lauren is organizing a series of events, including a live stream on Twitch on November 3, from New York. And on November 4, a global tournament on Fortnite, the “Polo Stadium” cup, where participants will have the opportunity to win rewards, including Ralph Lauren x Fortnite outfits and accessories.

The Ralph Lauren x Fortnite physical apparel capsule is available since November 2, exclusively on RalphLauren.com.

The digital collection, which initially includes two outfits, will be available for purchase in the Fortnite Item Store starting November 5.

Sources :

https://journalduluxe.fr/fr/mode/ralph-lauren-epic-games-collection-mode-numerique-fortnite

https://www.gqmagazine.fr/style/article/vous-pourrez-porter-cette-collection-ralph-lauren-sur-fortnite-et-dans-la-vraie-vie

https://fashionunited.fr/actualite/business/fortnite-et-ralph-lauren-s-associent-pour-un-partenariat-en-jeu-et-en-physique/2022110230738

 

Find out about luxury and NFT with this article 

Categories
Business Circular Economy Digital Business eCommerce Fashion Luxury Marketing MBADMB Retail

Interview – The Brand Collector

Les interviewés sont Antoine Derbois et Hippolyte Noton, les 2 cofondateurs de The Brand Collector. The Brand Collector est la première marketplace dédiée aux professionnels du luxe de seconde main.

Présentez-vous ?

Antoine : Bonjour je m’appelle Antoine Derbois, cofondateur de The Brand Collector. Je suis responsable du pôle approvisionnement. Mon rôle est de créer des partenariats avec un maximum de fournisseurs afin d’étoffer notre offre.

Hippolyte : Bonjour je m’appelle Hippolyte Noton, cofondateur de The Brand Collector. Je suis chargé de toute la partie distribution. Mon rôle est de convaincre de nouveaux professionnels de rejoindre notre communauté. Antoine et moi avons fait une école de commerce ensemble, l’ESSCA, en Master Commerce International. C’est grâce à cette amitié que The Brand Collector a vue le jour.

Hippolyte a une expérience de commercial et Antoine d’acheteur dans le secteur de l’immobilier.

Comment est né The Brand Collector ?

Antoine : C’est l’association de 2 copains qui ont eu un coup de cœur pour le business international pour ses raisons culturelles et d’ouvertures d’esprit. Pour nous 2 c’était l’idée de pouvoir voyager : échanger le matin avec des Japonais et l’après-midi avec des Américains. Et c’est exactement ce qu’on fait aujourd’hui et c’est exactement ce qu’on voulait faire avant même de se connaître. C’est avec cette envie commune d’évoluer dans ce secteur là que notre collaboration est née. Lorsque l’idée nous est venue, nous avons eu la possibilité de pitcher notre projet auprès de l’ESSCA pour tenter de gagner une bourse, que nous avons remporté.

Hippolyte : Au début nous étions sur un business d’achat revente classique. Puis nous nous sommes vite rendu compte que ce modèle n’était pas scalable. Nous avons donc décidé de créer un outil qui nous permet de diffuser les produits de nos fournisseurs en totale automatisation sur le plus grand réseau de marketplaces spécialisés du secteur. N’ayant ni fournisseurs, ni marketplaces intéressées, nous avons dû y aller au culot. Nous disions aux fournisseurs que nous travaillons déjà avec les plus grands distributeurs d’Europe et aux distributeurs que nous avions le plus grand catalogue de produits de luxe de seconde main. Grâce à ça, nous avons été pris au sérieux des 2 côtés alors qu’on avait en réalité n’y l’un n’y l’autre. « Sell it before you make it ».

Antoine : La mission principale de The Brand Collector est « second hand luxury for professionals”. En somme, mettre en relation les meilleurs fournisseurs avec les meilleurs revendeurs et prendre une commission sur chaque transaction. 

La dimension RSE nous tient aussi à cœur. Nous souhaitons faire changer les habitudes de consommation des professionnels et des particuliers dans un objectif de sauvegarde de la planète et d’économie circulaire. Enfin, nous voulons casser les codes du luxe en prouvant qu’il n’est pas inaccessible.

Quel est le bilan de votre année 2021 ?

Antoine : 2021 a été pour nous l’année de la validation. Nous avons recruté 20 personnes et internalisé notre équipe tech. En termes de chiffres, une croissance de 300% pour un chiffre d’affaires de 4,2 millions.

Hippolyte : Nous avons aussi lancé notre marketplace B2B qui a cartonné dès ses débuts. L’intérêt de cette marketplace TBC Wholesale est que nous nous séparons petit à petit de nos revendeurs historiques pour vendre directement en notre nom en créant la plus grande communauté de professionnels du luxe de seconde main. C’est cette communauté qui augmente exponentiellement la valeur de notre société.

Qu’est-ce que vous nous réservez pour 2022 ?

Hippolyte : Nous avons véritablement lancé le B2B avec une base de données de plus de 3000 prospects et une équipe de 6 commerciaux. Donc notre objectif est de construire un réseau de professionnels avec des milliers de clients.

Antoine : Nous allons aussi continuer de nous améliorer sur la partie marketplace. Nous souhaitons automatiser tous nos processus pour que le B2B2C soit en totale autonomie avec 4 personnes à l’opérationnel et 1 au SAV. À terme, l’idée serait d’augmenter nos volumes sans augmenter la charge de travail pour notre équipe.

Qu’est-ce qu’on peut vous souhaiter pour le futur ?

Hippolyte : Une fois que nous aurons beaucoup de clients sur la partie B2B en tant qu’acheteur, notre objectif sera de les convertir en tant que vendeur.

Antoine : Notre schéma idéal pour le futur c’est que toutes les transactions de luxe de seconde main entre professionnels se fassent via The Brand Collector et qu’on devienne indispensable pour les acheteurs et revendeurs.

Hippolyte : En plus de cette marketplace B2B, nous allons aussi développer notre logiciel de diffusion multimarketplace en marque blanche afin de le proposer à l’ensemble de notre communauté pour maximiser leurs chances de vendre. À terme, nous voulons maîtriser l’approvisionnement et la distribution de la majorité des professionnels du luxe de seconde main.

La route est encore longue, restez connectés ! 

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Beauty eCommerce Luxury Marketing

Masterclass Retail: An overview of phygitalization

Masterclass Retail: An overview of phygitalization

On February 17, 2022, at EFAP, the masterclass on the phygitalization of retail took place. 

It appeared to be very promising subject that takes place in the context of the exit of the sanitary crisis. It raises a main question: What were the impacts of Covid on retail? and in particular in cosmetics? 

 In this article that brings a critical synthesis of this masterclass, you will be able to learn everything about phygitalization of retail.

What happened in retail in the last 5 years?  

For the past 5 years, the world went through a lot of disturbance: social crises, Brexit, health crises, that prevented people from going to physical stores.  

Because of that and other reasons such as pressure from globalization and growing pure players threatening physical stores, the latter started to change.

This change, involving the appearance of more “digital” physical stores, can be called Pygitalization. It’s the fusion between digital and physical. Phygital uses digital within physical stores to make an in-store experience digital and to digitalize an online experience.

But in order to see how retail has changed recently, we need to take a quick look at its history.

A brief history of Retail

How did retail evolve throughout the years?

Retail as a notion can be traced back to the 19th century when the first shopping malls and department stores appeared.

In 1852, Lebonmarché opened its doors as one of the first modern department stores in the world.  

During the 20th century, and particularly in 1916 in Memphis, Piggly Wiggly became the first self-service grocery store in the world, a very interesting approach to flow management 

In the 1920’s, first cheaper supermarkets started to rise. By the 1930’s the concept of franchises was launched, and at the same time, Monoprix began to experiment with sensory marketing with music in its stores.

The following decades saw the advent of discount with the Albrecht brothers, pioneers in the domain with the creation of Aldi.

Stores surfaces start to grow bigger: in 1963, Carrefour opens the first hypermarket in France, with a surface of 2500m².

In 1969, Séphora and Yves Rocher open their surfaces the same year, initiating the trend of modern cosmetic retailing.

Following these innovations, the end of the 20th century sees the emergence of the customer loyalty priority: customer retention becomes a priority. 

But at the very end of the 20th century, when physical retail sees its evolution slowing down, the advent of the internet will change everything. In 1994, the first purchase on the web takes place.

And this is only the beginning, during the years 2000 to 2010: e-commerce and digital started to unfold globally. In the past decade, physical retail takes its own action with pop-up stores, connected shop windows and the use of social networks in-store. Click and collect also starts to develop. 

From 2011 to 2016, we observe a disappearance of a “typical” point of sale format for the benefit of connected stores. Google even creates its first point of sale in 2016.  

this brings us back to our present days, where click and collect has now become a standard for customers to avoid delivery charges. 

In the future, what can we expect? The answer is simple: smaller, much smaller stores. And local ones. This stores will much likely be using AI and Big Data. They will also drop one-off prices and optimize product customization.  We can also expect in-store visual and voice recognition, and custom 3D printing and visualization.

 

Why is Covid-19 crisis so important in phygitalization of the retail of cosmetics?

In the cosmetic industry more particularly, Covid-19 has had a severe impact on sales. In 2021, stores in France noticed a drop in sales of 25% compared to 2019. 

In 2020, the drop was -17% for beauty products, whereas hygiene products jumped by 30%.

Among total sales, lipstick and cosmetics covering the lower part (and thus hidden by face masks) of the face faced the worst decrease: -73% for lipstick and -50% for foundation.

This resulted in about twenty stores closing. But this decline was also digital, with a severe decrease in internet stales, though less intense than for physical stores.

To deal with this crisis, stores started to focus on organic and covido-compatible ranges.

 

Among this storm, only one boat seems seems not to have sunk: the selective beauty market, is in a growth tendency. 

Only the selective beauty market is growing, strongly pulled by perfumes. 

Despite declines in the beauty sector, e-commerce remains the big covid winner, with +34% volume sales in 2021.

In this disrupted market, the big three beauty retail players (most popular outlets) are still in the lead:

-Séphora (800 exclusive brands, caters to all genders, loyalty system).  

-Yves Rocher (made in France, favorite brand of the French, affordable price, green)  

-L’Occitane (a trip to Provence at the entrance of each store),  

In addition to the covid, these brands remain threatened by intermediation: new digital actors linking supply and demand such as showroomprivé or veepee.

 

6 key points to understand the impact of phygitalization

An efficient way to look at digital transformation of a sector is inevitably Porter’s value chain. If you are not already familiar with this concept, take a look at what’s coming right below !

 

1- Human Ressources

Stores need to give their teams in training the same experience they will give to their customers” – Cristophe Flous, ceo of Texageres

Despite digitalisation of retail, the store is still an essential part of the consumption process. But the role of salespeople has evolved.

Phygitalization has a role to play in sales force training: there is a clear need for blended learning, and the creation of operational and clear, 100% online modules.

 

2- Logistics

The customer wants to know when he will be delivered, and what he can find in the store or not. Logistics exist from the moment the customer places his order until the moment he receives it.

From that moment, new challenges appear: e-tailer leaders have introduced faster and faster delivery times, which requires warehouse adaptability / flexibility.

We can notice 5 Pillars of the digital transformation of the supply chain: Cloud and SaaS (software as a service), data and analytics, IOT, Robotization, and Augmented reality.

We can even talk about a cultural change: “Everything on demand, everything now”. This is the Industry 4.0: based on the digitalization of all processes with the Internet of Things. In addition, digital transformation brings up omnichannel strategies rather than multichannel (which was the norm before).

Key points of Logistics is sharing information and data to increase efficiency, which also means reducing the time between ordering and receiving.

The perfect example for that is obviously Amazon with “Reverse logistics” : instead of having employees go to shelves to look for products, the shelves move to the employees at the ends (and it also saves space).

 

3- Supply

Supply is another part of Porter’s Value Chain that is changing drastically.

In Marionnaud stores for instance, Big Data and the sse of connected in-store-objects that offer recommendations on product supply lets the stores know in real time what is sold or not.

This represents a huge gain in management, stock collaboration and profit.

 

4- Product & service testing

A recurring problem during the pandemic was about in-store testing. 

How to test products when there is no more in-store treatments, tests with professionals, and samples ?

During the two years of pandemic, stores adapted to the situation with innovant ideas, including:

 

Contactless testing

A solution named “Paperscent” dispenses personalized perfume cards with the name of the perfume engraved. Allows to know in real time the quantity of perfume and paper in the machine.

It collects user data to better understand their behavior and purchases via smartphone.

Coty also, or GK Concept with Dropper (not only perfume: device with motion detection for all types of products).

 

Augmented reality at the point of sale

Beauty hub, for instance, is an AR tool “Virtual Artist” at Sephora: it allows virtual testing of beauty looks via a connected mirror.

MAC also launched a makeup mirror experience directly on WeChat.

But in-store apps have also developped: you scan a product barcode to see the results directly on your face.

 

But there are several others innovations like skin tone analysis tool to find the best foundation with an algorithm, Lancôme youth finder used in the Champs Elysées store to analyzes the customer’s skin to propose an appropriate routine, Frangrance walls with questionnaire on tablet then illumination of the perfumes that best matches the profile.

 

Outside of direct in store innovative testing solutions, new features and services have developped aroung the ROPO (Research Online, Purchase Offline) strategy.

 

Conversational Marketing

Chatbots, for instance, accompany customers who need information. It saves time for the customer and money for the brand (the chatbot collects leads).

The bot allows participants to obtain promotional codes that will bring them to the point of sale.

 Live shopping, a new trend coming from China mainly, also allows several conversational possibilities, such as:

– Answering to all the question in live

– Quick and easy access to the products mentioned in the live

– Presentation of the products by an expert

– Distribution of exclusive promotional codes to viewers

– Use of influencers

 

Some brands also tend to utilize a variant of livestreaming: the “Visio Mode” involves a beauty advisor who will help the customer from distance.

 

5- Payments

Payment methods are an integral part of the innovation strategy of the points of sale. Mobile payment particularly is a must for the younger generation, advisors in stores are equipped with phones to access the application.

With Covid crisis, many new payment methods have emerged:

-Payment in installments (new standard, increases the quality of the shopping experience, encourages purchase and increases the average basket)

-Payment on social networks (Instagram)

-Smart checkout (deposit of items in a bin where they are scanned, displayed, accounted for directly with an RFID tag)

-Flagship stores: connected stores with connected wristbands (which record purchases) and equipped with connected mirrors and vending machines

6- Communication

Cosmetics stores nowadays rely more than ever on beauty influencers, which is an effective digital lever for the brands. This is based on building a relationship of trust between the influencer and his community.

Influencer marketing is expected to reach $15 billion by 2022.

Collaboration between the brand and influencers to create exclusive products is now a must: it increases audience interaction, gains visibility, and helps creating a close relationship.

The use of newsletter has also boomed: after a purchase the customer receives a newsletter about the product purchased.

Among that, data collection is key: targeting optimization, touchpoint optimization, online / offline, personalization of the relationship are a must to be more relevant in the content and in the offers.

We have also seen the rise Social networks: 100% connected stores, the virtual becomes real, concrete with hashtags everywhere on the displays, codes to scan, mirrors connected to social networks (NYX in particular), with user generated content, tutorials, incentive to share content on social networks, users can tag photos with the store’s hashtags: increases customer engagement and reactivity, boosts the buzz.

    Takeaways

    Let’s take a look at the benefits of digital transformation on points of sale.

    Firstly, it is important to understand that consumers have in front of them DNVB’s, who do better, cheaper and faster than the traditional players. These

    These digital native vertical brands install a new reference system for consumers.

    Thus, digitalizing the point of sale and having a phygital approach (integrating the contribution of data to the performance, digital, on the physical) is an obligatory passage to preserve the competitive performance of the signboard (which depends on each of its contact points).

    The principle challenges are to:

    -Better integrate the point of sale into the purchasing process (so that it is relevant in a digital environment instead of being an anomaly in a sales process that is increasingly 100% digital)

    -Propose a coherence at each point of contact in offline (which is very difficult to do while we master it in online)

     

     

    Categories
    Business China Digital Business eCommerce entertainment Fashion Luxury Marketing Outils 2.0 Retail Services

    Fiche de lecture : Luxe & Digital de Eric Briones

    Adepte du digital depuis quelques années, je me suis souvent posée la question de me tourner vers une carrière dans le luxe mais aussi dans le digital. En parcourant les ouvrages sur le sujet du digital dans ma librairie je suis tombée sur ce livre qui allie ces deux sujets. Je connaissais l’auteur puisque nous avions la chance de voir un de ces webinars lors du HUB institute forum fin 2020. C’est donc avec attention que j’ai commencé la lecture.

    Qui est Eric Briones ? 

    Aussi connu sous son nom de bloggeur Darkplanneur, il est le co-fondateur de la Paris School of Luxury. Expert dans le luxe, il a exercé le métier de directeur du planning stratégique pour Publicis et Nous pendant plusieurs années. Il a également pu travailler et conseiller de nombreuses maisons de luxe telles que L’Oréal, LVMH ou encore Longchamps.

    Aujourd’hui il écrit beaucoup de livres souvent avant-gardiste sur le luxe, le marketing ou bien les différentes générations.

    Luxe & Digital

    Le livre Luxe & Digital est sorti en 2016 mais il affirmait déjà certaines tendances actuelles. A l’aide de témoignages d’autres experts, Eric Briones donne les clés pour réussir à manier le luxe avec le digital.

    Dans la première partie, il énumère les 10 clés du luxe Postdigital :

    • Clé 1 : Installer une culture de singularité digitale
    • Clé 2 : Avoir deux maîtres mots, clairvoyance et magie
    • Clé 3 : Régénérer sa puissance de fascination par sa communauté
    • Clé 4 : Passer du fan à l’inité
    • Clé 5 : Élire un enchanteur des conversations
    • Clé 6 : Imagery is currency
    • Clé 7 : Ouvrir les portes aux artisants Postdigitaux
    • Clé 8 : Ensorceler vos boutiques, développer l’expérience digitale augmentée
    • Clé 9 : Recharger vos histoires
    • Clé 10 : être à l’avant-garde du post-contemporain

     

    Dans une seconde partie, il fait appel à des confrères pour répondre à plusieurs questions et étudier plusieurs grands thèmes, passant de la big data, de l’expérience, au retail entre autres.

    En tant qu’étudiante MBD DMB Shanghai, l’un des sujets intéressants de ce livre fut évidemment la partie Chine. “Les chinois ne s’intéressent pas à notre passé mais à leur futur”. Cette phrase, Fred Raillard et Farid Mokart l’ont très bien comprise. Aujourd’hui, le digital chinois est en continuel changement. “Il ne s’agit plus d’aller quelque part pour acheter, c’est à la consommation de se déplacer”. Comme ils le soulignent tout est “commerce-tainment”. L’écosystème digital chinois est devenu présent dans la vie quotidienne et le mobile est roi. Les maisons de luxe doivent comprendre qu’ils faut aller à l’encontre de leur audience mais tout en gardant leurs valeurs.

     

    Enfin, de manière générale, ce livre montre que pour faire du luxe dans les prochaines années, le digital doit devenir un des piliers fondateurs.

    Bien que le digital change constamment, il est intéressant de lire ce livre qui approche les différents composants du luxe et se questionne déjà sur les meilleures façons de les aborder. Si vous êtes adeptes de luxe ou du digital en général, n’hésitez pas !

    Manon Anger

     

    Categories
    Beauty China eCommerce Events Luxury Marketing

    What is the Chinese Valentine’s Day called 520 ?

    In China, there are 3 special days during the year to celebrate love. Let’s focus on the 520, what is it?

    Today is May 20 also known as the 520. This day is taking its origin from the pronunciation of I love you in Chinese. Indeed, I love you “我爱你 wǒ ài nǐ” is similar to “五二零 wǔ èr líng”.

    This internet Valentine’s day is dedicated to the expression of love. From small to luxury brands, both have been taken this opportunity to create special campaigns.

    Along the years, May 21 has become the day of the lover’s positive answer. So it’s common for men to offer gifts to Women during the 520 and vice versa during the 521. However, it is not limited to lovers and some Chinese offer gift to friends or families. Many couple have chosen this date to get married as well.

    During the 520 & 521, e-commerce is touching mainly Generation Z thanks to the different touchpoints on social media like WeChat or Weibo.

    Some brands created a special collection/product for the 521 or collaborated with a KOL. It is also possible to find discount coupons.

     

    Let’s take a look at 2 different campaigns:

    Florasis 520 campaign 2021

    FLORASIS, a cosmetics brand, campaign for the 520.
    Limited edition lipsticks that express love: “520” (I love you) & “7319” (Love remains)

     

    Coach 520 campaign 2021

     

    COACH campaign for the 520
    Collection of bags revisited especially for the 520 for her and for him.
    Weibo post “How do you make sure that he / she receives your heartbeat signal accurately? Embellish with the love the embroidery elements on the handbags, master the secret code of love and of your heart, show your love as soon as possible for the 520! ”

     

    Thank you for reading !

    Categories
    Business China eCommerce Luxury Marketing

    INFOGRAPHIC : The New Luxury Customers in China

    For 3 years now, we have noticed a global increase in purchasing luxury goods in China.

    Here are some interesting figures:

    • 60% of growth in total spending in 2018 is due to China’s younger consumers.
    • The post-’90s Chinese generation is less loyal than the post-’80s generation to luxury brands.
    • By 2035, the younger generation could represent 40% of the country’s luxury goods buyers.

    If you want to know more, I invite you to read the full infographic on my LinkedIn.