Wednesday, December 7, 2016

Birthday at Burberry? Luxury Brands Adds Personal Service

Maria Jose Sorto
Birthday at Burberry? Luxury Brands Add Personal Services
Nov. 30, 2016 6:35 a.m.

Burberry Group PLC is one of the world’s most famous and luxurious designer brands. In the last couple of years the brand has focused their efforts in providing the customers with the most personalized and best quality service. These efforts include offering a glass of champagne to costumers while they shop to organizing private events and parties to which only the most exclusive customers and elite are invited. Burberry and other luxury retailers have started to build more personal relationships with existing customers to encourage them to go back to the stores and spend a little more each time. Whereas in the past luxury retailers had focused their efforts in expanding and opening stores around the globe, now, they are shifting to a different marketing approach in which they rather focus on existing stores and customers. There are many reasons on why luxury retailers have chose this approach, one of them is the impact corruption has had in Asia, the decline in tourist spending in Europe due to terrorism and the high cost of dollar for foreigners visiting the U.S. Sales growth for luxury goods has decreased dramatically and as a result the luxury industry growth has slowed down as well.

Luxury brands have also focused on data collecting from customers in order to provide better products and service. Brands like Hugo Boss and Burberry can look at past data about in-store and online purchases by accessing an iPad app. While in the past luxury retailers have set trends that customers can follow, now, the roles have been reversed and brands are taking a close look at what the customers want. Reports from these brands show that customers who receive a more tailored service are 20% more likely to return and around 35% willing to spend more. Luxury retail experts believe taking a more methodic and scientific approach to merchandising results in better outcome and higher revenues.

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