Bringing luxury retail online – the ecommerce challenge

28/06/2015

Online retailer Farfetch’s recent acquisition of Browns is one example of how a luxury retailer has pursued an innovative strategy for bridging the luxury ecommerce and offline shopping experience. In this case, Farfetch already had a comprehensive online offering and a network of boutique stores. Following the acquisition, Farfetch now possesses a flagship store, where the brand can experiment with in-store technology and expand on its consumer offering. Farfetch’s boosted foothold in the market will have other players in the luxury market turning their heads in envy.

When assessing delivery, the ‘final mile’ is crucial to customer experience yet it is the part of the online shopping experience that retailers have the least control over. This is certainly one of the factors affecting the slow uptake of selling online in the luxury sector. Click and collect is currently in vogue with retailers and consumers. Across the UK, 44% of online buyers opted for click and collect during 2014, according to a recent Mintel report. However, despite its popularity as a collection method, only 41% of luxury retailers currently offer it.

Selling online doesn’t have to denigrate a luxury brand, however selling online poorly will. Customers will begin to resent a brand for making them jump through hoops when trying to purchase a product online or wait three days for ‘express’ delivery. Looking ahead, luxury retailers with stores in the UK have a real chance to differentiate themselves from other retailers, they just need to take ownership of their ecommerce strategy. Similarly, innovative players such as Farfetch, with their high street and online offering, find themselves in a powerful position.

This article was originally published in the print version of Luxury Briefing magazine. Unless stated otherwise data taken from Ampersand’s Multi-channel Retail Report: Luxury Edition.