and Video/Live Shopping technologies, revamping the website and launching more engaging and personable app designs and features.” Similarly, Geetanjali said, “ While offline shopping has seen a surge, online platforms have also seen tremendous YOY growth by focusing on increasing the assortment, expanding the reach to T2/T3 markets, tapping newer audiences, and so on.” She further said Tata Cliq is introducing differentiated on-site experience, offering a careful curation of brands,mindfullydeveloped brand stores, luxury delivery and unboxing experiences, designed to bring luxury shopping to the customer’s doorstep.Personalised privilege programmes, managed by attentive relationship managers are aimed to keep the momentum going. Physical fashion shows and stores are now open, adding more options for retailers. Luxury retail’s hybrid model Luxury retail was fuelled by a quick digital pivot and rebounded from Covid-19 quicker than many other retail segments. More recently, the performance of luxury retail proves that it is weathering global inflation far better than most thanks to the deep pockets of affluent customer spending. After a brief recession — that was experienced across industries — the luxury industry was one of the first to bounce back. Luxury retailers have reinvested these gains into their businesses in various ways, all while staying true to the crux of the luxury business model: an unforgettable and unique in-store experience. Today, physical stores are reworking their strategies from personalized services to frictionless logistics, and immersive experiences. The sale of luxury goods fells by over 20% last year to €217 billion, being the largest ever drop since 2009. But the consumers appetite for spending on high-end goods once stores reopened saw no signs of slowing down. Bain estimates that global sales of personal luxury goods will reach at least €305 billion this year, —and up to €330 billion in a more optimistic scenario — building on its fast rebound from pandemic lockdowns. The speed of the recovery has been uneven; while some of the biggest groups such as LVMH, Hermes have already risen above their 2019 levels, smaller labels are still lagging behind. Despite the challenges and disruptions, Bain & Company estimates the luxury market growth to reach €360-380 billion by 2025. Post-pandemic customers had more spending power and returned with vengeance Online sales have boosted profit from luxury retailers. However, soaring sales in China helped the luxury retail market bounce back sharply in the first quarter of 2021. It was early last year that Chanel released a statement announcing the news that their sales had almost doubled in China. The luxury goods sector has been able to bounce back despite the coronavirus crisis as Chinese and U.S. shoppers help sales recover to prepandemic levels, according to a report by Bain. The United States has also overtaken Europe as the largest luxury market last year. Bain now sees a 30% probability that sales of high-end handbags, clothes and jewellery will return to or exceed their 2019 level of 280 billion euros ($340 billion) this year. In a luxury goods market report by Bain & Company Claudia D’Arpizio, a Bain & Company partner and lead author of the study said, “Luxury goods brands started showing especially strong growth this year while also playing a leading role in the world’s ongoing sustainable and digital transformation.” In the first quarter of 2022, the luxury goods market grew by 17-19%. Bain attributes the increase to multiple factors including Europe accelerating its recovery, despite the war’s shadow, the US tapping into the power of diversity and inclusion, China spending being crunched under strict Covid restrictions and South Korean brands successfully reinvented their business model in the country to cater growing local demand and influence. But it wasn’t only revenge shopping, shoppers were back with a vengeance and higher budgets to splurge, making it a global trend. In India too, the luxury market surged unexpectedly once retail moved back to prepandemic norms. “Our business saw nearly 250% growth overall. Many high-ticket items such as Birkin’s, Rolex, AP, and Chanel products moved swiftly during the pandemic said Vijay. However, he attributed the increase to three key factors; international travel coming to a complete halt for nearly 12-18 months, leaving the rich and aspirational class with no choice but to shop within the country; impulse consumer shopping for special occasions and relationships during the lockdown due to more leisure and finally he says... “ the feel-good mindset led shopping really bumped up our online sales.” The new-age store India has over 912,000 millionaires, representing 2 per cent of millionaires globally, increasing by the day and driving a change in consumer behaviour for those with Most shoppers are hybrid shoppers who engage with brands through multiple channels simultaneously e-commerce with online sales for personal luxury goods expected to reach 25 per cent by 2025 Luxury retail has surged post-pandemic Photo Courtesy: Unsplash 44|L U X E B O O K|O C T O B E R 2 0 2 2 O C T O B E R 2 0 2 2 |L U X E B O O K|45
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