BoF Insights | The Evolving Art of Luxury Experiential Retail

This report was created in partnership with Royalmount, the forthcoming luxurious purchasing district within the coronary heart of Montreal by actual property developer Carbonleo.

Luxurious purchasing is at an inflection level. At the moment, luxurious style buyers not solely need superior customer support and entry to the highest-quality manufacturers in-store as they all the time have, they now count on manufacturers and retailers to ship in partaking methods whereas embracing the newest advances in sustainability and know-how, in keeping with a brand new BoF Insights report.

A tall order maybe, however best-in-class luxurious gamers have methods in play to satisfy these increased expectations because the report, titled “The Evolving Artwork of Luxurious Experiential Retail,” demonstrates. BoF Insights, in partnership with Royalmount, performed a survey of roughly 1,500 buyers within the US and Canada for the report together with interviews of senior executives from throughout the retail trade to grasp finest practices and what lies forward for luxurious experiential purchasing.

To fulfill — and exceed — buyer expectations, manufacturers and retailers should increase the bar by innovating round three key pillars: “supercharged connectivity,” or progressive know-how that facilitates deeper human relationships; “sustainable retail” each inside and outdoors shops; and “inclusive luxurious,” which creates partaking retail areas that may provide one thing to all guests. For instance, almost half of frequent luxurious customers in North America surveyed for the report agree that luxurious shops ought to be greater than a spot to buy merchandise, whereas almost two-thirds count on sustainability to be an necessary function of their purchasing expertise.

Whilst e-commerce performs an necessary position in shopper behaviour, one other key discovering is that shops are nonetheless paramount. About 77 p.c of frequent luxurious prospects from the survey say they count on to go to a retailer as usually or much more steadily within the yr forward than in 2022. Shops are thus pivotal for model communities, customer support and storytelling.

Luxurious retail have to be redefined by embedding immersive and emotional experiences. The report’s seven case research illustrate how diverse firms on the forefront are shifting the needle on experiential retail: Harrods, Le Bon Marché, Nike, Reformation, RH and Sephora, together with a research of Royalmount, a mixed-use luxurious purchasing vacation spot from Carbonleo, with the primary part set to open in 2024.

To study extra in regards to the Royalmount mission, please click here.

This can be a sponsored report paid for by Royalmount as a part of a BoF partnership.