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Federica Levato: The Changing Role of the Luxury Store

Brands can capitalize on the growth opportunities in the industry by investing more in their stores.

  • 2018年12月3日

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Federica Levato: The Changing Role of the Luxury Store

With the growth in digital technologies and e-commerce, luxury is undergoing a major transformation. Federica Levato, a partner with Bain's Retail practice, explains how brands can reinvent their store concepts to take advantage of the millennial mindset and reshape their customer journeys.

Read the Bain Report: The Future of Luxury: A Look into Tomorrow to Understand Today

Read the transcript below.

FEDERICA LEVATO: Luxury is undergoing a major transformation. Digital technologies are reshaping customer journeys and customer touchpoints. Luxury companies are investing up to 50% of their marketing budget into digital activations. And e-commerce will become more than 25% of the luxury market in 2025.

The role of the stores needs to change accordingly. Time is the new currency for the new generations of luxury customers, GenZ and millennials. So brands need to give good reasons to their customer to spend time in their stores.

Stores will have to become true embassies of their brand and not just points of transaction. Stores need to shift from a standardized to a location-specific format and concept, from an impressive experience to an immersive experience, and from being aspirational to really inspire and be inspirational for the customers. Stores will really become new circles and spaces for local communities to meet and spend time around brand and brand value, and to extend and expand customer lifetime value.

Read the Bain Report

The Future of Luxury: A Look into Tomorrow to Understand Today

Our Fall–Winter 2018 Luxury Goods Worldwide Market Study highlights seven trends that will shape the industry through 2025.

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