《贝恩公司:2023奢侈品与科技-新时代的开端研究报告(英文版)(38页).pdf》由会员分享,可在线阅读,更多相关《贝恩公司:2023奢侈品与科技-新时代的开端研究报告(英文版)(38页).pdf(38页珍藏版)》请在三个皮匠报告上搜索。
1、LUXURY AND TECHNOLOGY Toward the Boutique of the Future 2023 ReportSecond editionCopyright 2023 Bain&Company,Inc.All rights reserved.Bndicte Epinay President&CEO,Comit Colbert Laurent Dhennequin Director of Cabinet,Comit ColbertComit Colbert TeamMathilde Haemmerl Partner,Head of Luxury at Bain&Compa
2、ny France Jolle de Montgolfier Executive Vice-President in the Consumer Goods,Retail and Luxury Practices at Bain&CompanyCharlotte Morizot Senior Manager in the Retail&Luxury Practice at Bain&Company France Authors1Summary.2Introduction .5General considerations .6Technology to improve interactions b
3、etween customers and sales associates .13Technology to enrich the customer journey and brand discovery .17Technology to improve the flow of customer journeys and operations .23Imperatives for the luxury sector.29Methodology.32Acknowledgments .33TABLE OF CONTENTSLUXURY AND TECHNOLOGY.Toward the Bouti
4、que of the Future.2023 ReportComit Colbert|Bain&Company,Inc.2Summary The accelerated adoption of new technologies in the luxury sector has continued,with increasingly sophisticated use cases for the most mature technologies(notably radio frequency identification and artificial intelligence),and a st
5、eady flow of experiments to enhance customer engagement(augmented or virtual reality,NFTs).The metaverse trend has given way to generative artificial intelligence,with highly promising use cases for the industry.Moreover,the connection between new technologies and sustainable development is now much
6、 more evident for luxury goods makers(Maisons).Post-Covid,the boutique has reclaimed its status as the cornerstone of a Maisons identity.However,its role has evolved beyond merely hosting the purchase to providing a human and emotional experience and an immersion in the brands universe(for 43%of lux
7、ury customers,discovering the product and the brand is the primary reason for their boutique visit;for 34%,its the feeling of VIP treatment).That means the boutique must be fully integrated into an omnichannel customer journey.Though often concealed,technology is ubiquitous in boutiques,powering thr
8、ee distinct objectives:magnifying the relationship between customers and sales associates;enriching the discovery of collections and the immersion in the brands universe;and,ultimately,streamlining the customer journey and operations.75%of luxury customers display a strong appetite for the technolog
9、ical use cases tested in our study,assuming the demanding standards of the sector are met:i.e.,no self-service and only the highest standards of execution.The first field of technology application in boutique is about enriching the relationship between the customer and the sales associate.For 61%of
10、luxury shoppers,this relationship influences their willingness to promote a brand;deepening that bond is the main priority for all the surveyed Maisons.Clienteling tools foster intimacy between the customer and the sales associate,enabling more accurate and personalized recommendations based on cust
11、omer,product,and logistics data.Enhancing the flow of the in-store journey is the second field in which new technologies can be applied,helping to ease existing bottlenecks(58%of customers mention waiting times as a source of frustration).For instance,tests are performed to enhance the payment stage
12、 or the rapid tracking of products in the boutique.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.3 Beyond these applications,Maisons are testing use cases aimed at enriching their storytelling:through augmented reality,virtual reality,or connected
13、mirrors to breathe extra life into collections and immerse customers in the brands universe and heritage.These experiments are primarily conducted by the Maisons affiliated with luxury groups.Lastly,the combination of luxury market growth and sustainability commitments has made it even more pressing
14、 to adopt new technologies and use cases in operations,in areas such as boutique-specific assortment selection,improved stock allocation,inventory automation,and more.New technologies(e.g.,artificial intelligence and RFID chips)can optimize flows and operations,ultimately maximizing the customer-fac
15、ing time.While new technologies in luxury boutiques have taken significant strides following the Covid pandemic,they still have ample room for development.Scaling up their deployment requires a deep transformation of the Maisons,extending far beyond the boutique walls.This will involve a cultural re
16、volution(team buy-in,work platforms),a redesign of technological architecture,as well as an evolution of the boutique in terms of its layout and organization.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.4The customer journey in tomorrows boutiqueC
17、onsider a customer,lets call her Pamela.Shes Franco-American,works,travels.You all know her:shes a classic luxury goods shopper.Sometimes she has time,sometimes she doesnt.She organizes her wish list,schedules an appointment,and checks the availability of that bag shes been eyeing(which a chatbot ha
18、s accurately recommended to her,fueled by her browsing history).She might also take a tour of the boutique in advance,using virtual reality oreven betteraugmented reality.Arriving at her destination,she stops in front of the adjacent boutique.Drawn to the interactive displays,she scans a QR code and
19、 browses the product details on her phone.She could have joined the virtual line,but its already time for her appointment.She enters.The sales associateseeing her for the first timealready knows her very well.The sales associate has been able to review her purchase history and the web pages that cau
20、ght her attention.They know whether to call her Pamela or Mrs.Ferrand.“Oh,please call me Pam,”she interjects,immediately feeling at ease.She discovers some products she wasnt familiar with thanks to the sales associates app and shares them on her Instagram account.She experiences the latest fashion
21、show as if she had been there.Could she have talked to a robot that might have guided her in this vast flagship boutique?Who knows .She shows on her phone the details of a bag she had taken a picture of on the streets.The image recognition immediately identifies it.The products she had selected befo
22、re coming await her in the fitting room,as well as the products presented by the sales associate(all are in stock because artificial intelligence has brought an unparalleled accuracy to inventory management,aiding restocking through improved demand forecasting,for instance).If she had been in a rush
23、,she could have trusted the hologram or the virtual try-on in augmented reality.But today is all about relaxing so she takes her time,exploring other items,too.Those pumps do indeed go very well with that suit,as suggested by the boutiques interactive mirror.The tawny leather?No.The beige leather?No
24、.The gray leather?Yes,perfect.In the meantime,the red sweater she spotted when entering the boutique has arrived in black from another store location.A perfume?Why not.She likes cypress,florals,not too sweet,but a bit of sweetness nonethelessas the neuronal assessment confirms.Using her phone,she se
25、ttles her payment directly with the sales associate in the small private lounge where she finishes her very real glass of champagne while her bags are being prepared.She could have also received a payment link,calculated from automatic scans of the radio frequency identification(RFID)chips of her pu
26、rchases,or been debited directly by passing through the gate at the exit.Euros,dollars,bitcoins?The choice is hers.Artificial intelligence(AI)has allowed prices to be determined based on demand,competition,or stock levels,and to adjust them in real time.She has already received all the warranty cert
27、ificates on her account:non-fungible tokens(NFTs)that she can use when she sorts through her wardrobe.She can directly forward the care recom-mendations to her dry cleaner.She will even be notified when its time to nourish the leather of her bag or when the new variation of the perfume she chose com
28、es out.She has the small clutch bag she found for her mother directly delivered to her,and she sends her the video gift card that she recorded on the spot:“Remember?Grandma wore it in blue at my wedding:two generations later,still a customer!Everything changes,yet nothing changes.”LUXURY AND TECHNOL
29、OGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.5IntroductionThe lockdowns and restrictions due to the Covid crisis temporarily kept customers away from boutiques.Their return to physical stores comes with an increased need for interaction and connections.The boutique
30、 is now more than ever a destination for pleasure,discovery,and enchantment.The boutique?No,the boutiques.As Angeline Durand Sastre,Head of Fashion Europe at CHANEL Mode,points out:”Each boutique is unique:one boutique,one story.”Indeed,boutiques come in various and complementary formats.They must a
31、dapt to the locations they are in(residential,tourist,travel retail,pop-up,exclusive customer lounge.)as visitor expectations differ greatly.In high-traffic areas,speed is essential,and technology primarily aims to eliminate inconveniences.In tourist zones and flagship boutiques,it enhances the expe
32、rience and exploration.While this segmentation of retail formats broadens the brands territory,channels must communicate seamlessly,which only technology can enable.Because boutique visits are increasingly part of an omnichannel journey:66%of luxury customers spanning all generations and geographies
33、say they consult the Maisons website before making a purchase.A continuous dialogue is established beyond its physical walls both before and after the visit to attract the customer,trigger the purchase,and nurture the relationship from one visit to another.Clienteling applications orchestrate the va
34、rious touchpoints:boutique,website,aftersales,ongoing interaction with the sales associate.Centralizing and analyzing all this data allows each customer to be treated as a unique individual and accompanied throughout their journey,whether in-store or not.That data can be used to inspire the customer
35、 at crucial moments through personalized messages.Likewise,scanning customer wish lists and their visit/purchase history can help sales associates serve and advise them better.New technologies allow for an enriched form of storytelling.They enable brands to surprise the customer and strengthen emoti
36、onal connection:75%of customers are ready to embrace their use.The technological tools available todaywhether they directly interact with customers or run in the background of the boutiqueoutline the contours of tomorrows customer relationship:more practical,more experiential,more personalized,and,o
37、f course,more emotional.That relationship will become more engaged as well,in line with increasing customer expectations toward a brands values and purpose.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.6We conducted exclusive qualitative and quanti
38、tative surveys of luxury customers in various categories(from ultra-high-net-worth individuals to aspirational customers),covering three core markets(France,the USA,and China).These surveys enable us to better understand their expectations regarding the boutiques role,and their appetite for a range
39、of technology-supported use cases.Reasons for visiting the boutique The boutique(as a physical space)remains the epicenter of the relationship between the customer and the brand.For Maisons,its an opportunity to express their DNA,highlight their heritage,and showcase their craftsmanship:to create a
40、consistent environment that they have complete control over.As Matthieu Rinville,Founder of Orbis Advising explains:“The boutique is the platform for the relationship between the brand and the customer.It allows the Maison to personally know its customer,build a relationship of trust,and thus foster
41、 loyalty.”For customers,its primarily an opportunity to discover the products and collections of the Maison,while enjoying a personalized and privileged treatment,all within a smoother experience.Close to 45%of luxury customers mention that exploring products and collections is the primary reason fo
42、r visiting a boutique.Nothing compares to the pleasure they feel when they browse,touch,and try on unique pieces,thus discovering their true sophistication.As they stroll through the boutique,they enter a unique universe and give themselves the opportunity to deepen their understanding of the collec
43、tions as well as the values and history of the Maison.Yet for about a third of customers,the primary reason for visiting a boutique is the special treatment provided by the sales associate.As experts in their field,they offer tailored service,advice,and guidance throughout the customers experience.C
44、ustomers feel privileged and valued when they are taken care of with professionalism,thus reinforcing the exclusive nature of their experience.General considerationsLUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.7(Indexed score)Touch and feel of the
45、productsProductstry-onRelaxation,feeling like a VIPPersonalizedadvice from a salesassociateSpeed ofpurchase Productsavailable exclusivelyin boutiqueImmersionin brands history and valuesMistrustof online purchasesResale ofproductsRepairof products Frustrationwith onlinepurchases61453226262
46、3Discovery of products and brandSpecial treatment in boutiqueComfort and security vs.online purchasesSource:Comit Colbert and Bain&Company consumer survey(June 2023)Figure 1:Why luxury customers choose to shop in a physical boutique43%34%24%Share of customers citing as first criterionDiscovery of pr
47、oductsand brandComfort and securityvs.onlinepurchasesSpecial treatment in boutiqueSource:Comit Colbert and Bain&Company consumer survey(June 2023)LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.8Share of customers willing to adopt a range of use case
48、sExamples of tested use cases(11 use cases tested in total)Would not use it,without impact on satisfaction(14%)Would use it(75%)Would not use it and could reduce satisfaction(11%)Prepare a wis hlist online Book an appointment onlineAccess product information via a digital tag Try on items virtuallyD
49、iscover brands history through digitalcontent Be assisted by a robot Source:Comit Colbert and Bain&Company consumer survey(June 2023)Figure 2:Luxury customers are mostly keen to adopt new technology overallStrong customer interest in technology-supported use casesRegardless of whether they are regul
50、ar or occasional visitors,customers overwhelmingly endorse the utilization of new technologies in luxury boutiques today.An average of 75%of them express enthusiasm for the new use cases(see Figure 2).All generations display robust interest.Yet it is in France where customers show more measured enth
51、usiasm,with 66%of respondents being“promoters”of the tested use cases,nearly 20 points lower than in China,where 84%are promoters.As we highlighted in last years report,China often serves as the testing ground for luxurys technological advancements,both in-store and online(see Figure 3).LUXURY AND T
52、ECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.9Gen ZGen XBoomersMillennials13%16%71%15%14%71%7%13%81%10%14%76%Share of customers willing to adopt a range of use cases,by countryShare of customers willing to adopt a range of use cases,by generationWould not use
53、 it and could reduce satisfactionWould not use it,without impact on satisfactionWould use it15%19%66%13%13%74%5%11%84%Source:Comit Colbert and Bain&Company consumer survey(June 2023)Figure 3:Willingness to try new technology spans regions and age groupsThe disparities in levels of interest between t
54、he tested use cases are minor,except for the most futuristic technologies,such as robotic assistance,where opinions differ.Overall,19%of respondents show hostility to robotic assistance vs.an average detraction rate of 11%for all use cases.However,Chinese customers exhibit a distinct interest.For ex
55、ample,a 23-year-old customer stated:“Yes,it would be nice to have some company through a robot.I was quite impressed the first time I saw one.However,I might eventually get tired of it if I visited the same store multiple times.”For others,the presence of a robot could degrade the experience,as expl
56、ained by a French customer:“A robot?Its inhuman,cold,and essentially not very aesthetically pleasing.Im in a luxury boutique,not a pharmacy.”The presumed antagonism between luxury and technology is gradually fading:Only 16%of customers believe that technology isnt suitable for the sector.The barrier
57、s seem to be crumbling but on the condition that the use cases are deployed and presented to the customer in a way that matches their elevated expectations.That means no“self-service,”emphasized Cdric Aumonier,Business Partner at jeweler Lorenz Bumer:“The digital experience becomes acceptable when t
58、he customer is accompanied,when the sales associate marvels with them.”All with impeccable execution quality.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.1028%25%16%30%Top reasons for not wanting to use new technology in a boutique,by share of cus
59、tomers citingNo self-service/Preference for interactionwith the sales associatePoor quality experience/Unreliable technologyUnnecessary/Time-consuming Does not feel luxuriousSource:Comit Colbert and Bain&Company consumer survey(June 2023)Figure 4:Customers are particularly resistant to self-serviceT
60、he role of new technologies in boutiques Luxury Maisons are unanimous:they dont incorporate technology to be fashionable,but with specific customer-centric objectives.The deployment of new technologies in luxury boutiques serves three primary objectives (see Figure 5).First and foremost,it magnifies
61、 the relationship between customer and sales associate,deepening their intimacy.A personalized dialogue and heightened selling ceremonyenabled by the integration of platforms and intelligent data analyticsensure a tailor-made experience.Product recommendations generated by AI complement the sales as
62、sociates intuition and give a laser focus to sales conversations.Technology also boosts the sales associates level of knowledge,especially of inventory.They get a better sense of where products are in the boutique,as well as the real-time availability in other store locations and warehouses.LUXURY A
63、ND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.11Magnify the sales associate and customer relationshipEnrich customerjourney andstorytellingStreamline customer journey and operationsEmpower the sales associateto be omniscientTime optimization alongside the
64、customerDevelop brands narrativeJourneys into the brands universeExtend dialogue between sales associate andcustomerDigital experiences relatedto collections Ensure fluidity of customer journeySeamless omnichannel journey,reducing waiting timesImprove flows and operations Product assortmentand avail
65、ability,optimizingboutique layout,task automationStrengthen intimacy with the customerSelling ceremony and tailor-made recommendationsCLIENTSource:Comit Colbert and Bain&Company consumer survey(June 2023)Figure 5:Objectives served by technology in the boutiqueTechnology also aims to enrich the custo
66、mer journey and brand discovery.The goal is to offer new digital experiences,whether in-store or beyond its walls,to captivate and immerse customers in the Maisons universe and collections.This is achieved through immersive experiences,such as virtual try-ons or previews of product customization.Las
67、tly,technology is deployed to streamline the customer journeyeliminating friction pointsand the operations of the Maisons.This optimization occurs through improvements to in-store flows,assortment,visual merchandising,and product availability,as well as through the automation of low-value-added task
68、s.Value hierarchy of technology objectives in boutiquesOver the past five years,Maisons have made significant investments in the development of technologies that primarily align with the first of the listed objectives:placing an absolute priority on fostering stronger intimacy with the customer thro
69、ugh his interaction with the sales associate.The necessity of these investments is confirmed by the fact that the relationship with the sales associate is at the core of the emotional experience in boutique for 61%of luxury customers.Its what makes the moment remarkable.LUXURY AND TECHNOLOGY.Toward
70、the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.12The need to streamline the customer journey and operations through technology has emerged as the second major focus for Maisons,with a growing interest in experimental solutions that enable a seamless customer experience.Indeed,5
71、8%of customers mention waiting as a source of frustration,while 47%cite product unavailability(rising to 60%for Generation Z,for whom its the primary cause of disappointment in a store).Online appointment scheduling,real-time product location within the store,and mobile payment are among the technol
72、ogical use cases being deployed or explored by Maisons to minimize customer wait times and maximize the time spent with their sales associate.Furthermore,technological tools are being deployed widely within Maisons to optimize production volumes,stock,and the flow of goods.Predictive AI,for instance
73、,makes it possible to anticipate needs better,taking account of variables such as geographical area,type of boutique,customer footfall,and more.This predictive capability refines itself through real-time updates linked to sales,releases of new collections,advertising campaigns,and product interest o
74、n social media or e-commerce sites.This approach helps ensure compliance with new regulations(such as the French AGEC law on waste reduction and the circular economy).It also meets the societal demand for sustainable commitments,which has placed eco-responsibility at the core of brand strategies.Enr
75、iching the customer journey and storytelling through new digital experiences is emerging as a new battleground.The challenge is to surprise the customer,create memorable moments,and enhance the brands desirability.Exploring these use cases takes different directions among Maisons.It is primarily det
76、ermined by the size of the companies and their investment capacity,as return on investment is not always evident on a project-by-project basis.The second differentiating factor is linked to each Maisons adoption strategyor what one might call their technological philosophy,which is determined by the
77、ir history,DNA,approach to luxury,and more.#2Streamline customer journey and operations Enrich customer journey and storytelling#3Magnify the sales associate and customer relationship#113The expectations of luxury customers Luxury customers are not exclusive to the sector:94%of them can also be foun
78、d at Apple,Zara,Uniqlo,NIKE,or Reformationbrands from the premium or mass-market industry that have embraced new technologies,sometimes making them a primary selling point in physical stores.“We focus on offering an advanced,tech-enabled shopping experience,but always through the lens of enhancing t
79、he customer experience in our stores,”states Hali Borenstein,Reformation Chief Executive Officer.However,customer expectations are highly sector-specific.While they may appreciate immersive screens and holograms or enjoy interacting independently with digital tools at NIKE or Reformation,their expec
80、tations shift when they step into a luxury boutique,where human interactions remain an essential prerequisite.For technology to enhance customer relationships,it must assist the sales associate in their role and traditional objectives,and make them more knowledgeable,always with discretion and flawl
81、ess execution.The Deus ex machina sales associate For 61%of customers,the relationship with the sales associate is the key factor in creating a remarkable experience whether in-store or beyond(see Figure 6).Therefore,technology is not meant to replace the sales associate but to accompany them in enh
82、ancing human relationships without ever encroaching on their role.A disappointing relationship with the sales associate is one of the primary causes of frustration for 46%of customers.Technology to improve interactions between customers and sales associatesLUXURY AND TECHNOLOGY.Toward the Boutique o
83、f the Future.2023 ReportComit Colbert|Bain&Company,Inc.14Share of customers citing as remarkableExceptional atmosphere and boutiquedesignAccess toexclusiveproductsProactive advice onproduct careAssistance from a salesassociateSalesassociate anticipating needsDiscoveryof brands history and valuesProd
84、uctcustomizationFollow-up from thesales associateafter thein-store visitQuickpaymentInformationabout producttraceabilityVirtualtry-on of unavailableproducts38%33%33%30%27%26%26%25%24%23%19%Relationship with the sales associateImmersion in brands universeIn-boutique services Source:Comit Colbert and
85、Bain&Company consumer survey(June 2023)Figure 6:The most remarkable moments for customers when shopping in a luxury boutiqueRelationshipwith the salesassociateIn-boutiqueservices Immersionin brandsuniverse61%55%55%Share of customers citing as top-four criterionSource:Comit Colbert and Bain&Company c
86、onsumer survey(June 2023)LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.15The sales associates tech-powered omniscience strengthens the relationship.It,first and foremost,enhances the relationship by personalizing it,using all the data collected thr
87、oughout the customer journey(preferences,purchase history,returns,interactions with the Maison,even events outside the boutique).It also broadens and makes the relationship more relevant.The sales associates intelligenceintuition,knowledge,interpersonal instinctis enriched with additional data(such
88、as behavioral insights)provided by artificial intelligence,to offer more fitting recommendations.It becomes more precise and tailored due to a better view of stock availability.Lastly,technology makes the sales associate more available,maximizing their time spent with the customer.“In fact,our clien
89、teling platform has allowed our sales associates to spend more time with our customers especially by offering stock visibility within the application,eliminating the need to physically access the storeroom,”notes Isabelle Durand Richard,Global Chief Client Officer,Performance and Omnichannel at Chri
90、stian Louboutin.“Before its development,a customer received assistance less than 40%of the time spent in boutique.”The continuous enhancement of features goes hand-in-hand with the enrichment of the customer relationship,foreshadowing numerous other benefits and increasingly accurate recommendations
91、.All Maisons today rely,for all these reasons,on clienteling applications designed to support the sales associates.The spectrum of functionalities varies among companies,their DNA,and their philosophy.Kering has developed in collaboration with Apple an app for its in-store sales associates,enabling
92、them to provide more personalized and efficient service to their customers.Initially designed to prepare appointments,monitor real-time stock levels,and provide style recommendations,the appregularly enhanced based on user feedbacknow offers new features,particularly to facilitate in-store replenish
93、ment.The purpose of luxury is to create emotions and exceptional experiences in-store.The digital strategy that has concentrated a significant portion of our investments in recent years is to build an even stronger and personalized relationship between the customer and their sales associate.Grgory B
94、outt,Chief Client and Digital Officer at Kering GroupLUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.16The relationship between customer and sales associate is also a priority for independent Maisons.For example,at Longchamp,the app developed in part
95、nership with ChapsVision offers a 360-degree view of the customer based on data captured throughout their journey in-store,in customer service,and soon online(purchase history and interactions with the brand,key dates for the customer,etc.).This ensures personalized recommendations and therefore imp
96、roves the in-store experience.The app is deployed in 270 points of sale and used by 1,200 sales associates across 25 countries.“I have confidence in the power of invisible technology that makes our sales associates faster,more efficient,smarter,and more knowledgeable,without dehumanizing interaction
97、s,”assures Sverine Darbois,Client Experience,Retail and E-Commerce Director at Longchamp.Nonetheless,the tool is still just a tool.The sales associate is in charge.The rapid development of appointment scheduling has allowed sales associates to prepare for customers visits in advance,freeing them fro
98、m their screens and optimizing their attention,thereby making the use of tools even more seamless.This integration of technology into human interaction doesnt seem to bother customers,especially the younger ones who consider it legitimate.As pointed out by a 23-year-old British customer“I expect the
99、 sales associate to establish a genuine relationship with me.I would appreciate if they remembered my preferences and advised me accordingly.I would like this relationship to continue even outside the store,especially for them to suggest pieces that might interest me and hold them aside.”LUXURY AND
100、TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.17Beyond the invisible technology that lies hidden behind the sales associate,there is also a strong appetite among customers for tools that aim to enrich their in-store experience and their knowledge of the brand
101、.Two main uses emerge:those that extend the dialogue between the sales associate and the customer by inspiring the latter from a fresh angle around the collections,and those that disconnected from the actual purchasing journeydevelop the brands overall narrative beyond the boutique and offer an imme
102、rsion into its universe.Technology to enrich the customer journey and brand discovery EXTEND THE SALES ASSOCIATE AND CUSTOMER RELATIONSHIPDEVELOP BRAND NARRATIVEAccess productinformation viaa digital tagFind ones sizeusing a 3Dbody scannerVirtuallytry on productsDiscover the brandshistory throughdig
103、ital contentPersonalize productsoneselfShare of customers willing to use technology for a specific purposeWould not use it and could reduce satisfactionWould not use it,without impact on satisfactionWould use it8%13%79%9%13%78%10%14%76%12%15%73%9%14%77%Source:Comit Colbert and Bain&Company consumer
104、survey(June 2023)Figure 7:Where the deployment of new technology is likely to be most welcomed by luxury customersLUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.18Extending the dialogue between the sales associate and the customer The first set of u
105、ses includes recommendations,product information,customization,and virtual try-ons.They strengthen the relationship with the sales associate and serve the collections narrative.In the CHANEL boutique at 19,rue Cambon,Paris,interactive mirrors display complete runway looks based on items brought into
106、 the fitting rooms,which are identified automatically via radio-frequency identification(RFID)chips.The sales associate can also control the mirror with their app and provide additional suggestions.“These mirrors are not intended to create a wow effect,but rather to serve as a tool facilitating comm
107、unication between the sales associate and the customer.They are indeed a visible technology,but their true purpose is to seamlessly blend in and act as a simple means to facilitate communication between the customer and the sales associate.”Angeline Durand Sastre,Head of Fashion Europe at CHANEL Mod
108、eEven in premium fashion,where technology is the cornerstone of the customer experience,being supported by a sales associate creates value.At Reformation,for example,the in-store experience is made to feel like customers are shopping online.Shoppers use touchscreen monitors to create a session and a
109、dd items to their“magic wardrobe,”and within a few minutes,their dressing room is stocked with their selection.“Technology is the heart of the experience of our customers,combining online and offline in a seamless way.That said,our sales associates still play a critical role in the customer journey.
110、The average order value is significantly higher when the transaction is assisted,”explains Reformations Borenstein.In the context of essential omnichannel strategy,which has become more crucial since Covid,luxury Maisons are also developing increasingly sophisticated remote consultations.For example
111、,Parfums Christian Dior offers online makeup consultations lasting an average of 30 minutes.These consultations aim to replicate the boutique experience in a setting that recreates the one-on-one relationship with the sales associate to ensure the same intimacy and level of advice and guidance.Virtu
112、al trialsmade possible through partnerships with Bambuser(experts in video commerce)and Perfect Corp(virtual try-on specialists)allow products to be tested as if the customer were in the boutique.While these consultations are currently highly effective for makeup,ongoing technological advancements a
113、re likely to soon elevate the quality sufficiently to expand their LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.19Digital taglabels to enhance customer experienceDigital tag devices utilize technologies such as QR codes or near-field communication
114、(NFC)to store and transmit information about a product.Designed to be discreet,they are commonly used for tracing products throughout their life cycle.Details about the origin of materials,manufacturing processes,and care instructions can be accessed through a quick scan of a label.These labels can
115、also serve as an authentication tool:They allow the customer to access their authenticity certificate at any time and can thus facilitate second-hand transactions.The Maison Chlo has embraced this approachin line with the Maisons ecological and social values to offer its customers transparency,trace
116、ability,and an extended lifespan for garments or accessories.The Digital ID,launched in April 2023 in partnership with EON and Trust-Place,is a QR code(or a chip for shoes)placed on creations from the Chlo Vertical collection(bags,shoes,and ready-to-wear items made from linen,silk,wool,or leather).E
117、ach piece in the collection is traceable,with the Digital ID providing access to all information related to the manufacturing process,from the original source of the material to the final production.This digital passport also serves as an authentication certificate,while also including valuable advi
118、ce to extend the lifespan of the purchase(maintenance and repair).It includes a direct link for authenticated resalewith a unique numberon the luxury second-hand platform,Vestiaire Collective.Currently limited to the Chlo Vertical collection within its spring-summer 2023 collection in Europe,the UK,
119、and the US,this innovative service is set to be expanded to Chlos entire collections by 2025.From September 2023,all Chlo ready-to-wear collections will be equipped with the Digital ID.application to accessories.However,greater challenges are faced in the realm of ready-to-wear,given that factors su
120、ch as elasticity,fabric weight,and body shape significantly impact how a garment is worn.Other use cases are particularly focused on enhancing emotions.“We use technology to improve,enrich,and personalize the customer experience with the goal of strengthening the customer relationship with our Beaut
121、y Advisors,”says Guillaume Legay,International Retail Director at Guerlain.“We see that this approach also has a significant impact on our conversion rate.”The Maison implemented a fragrance consultation station in its Harrods concession in 2019,which has since been widely deployed.Based on the disc
122、overy of two fragrance series and the customers impressions at each step,it allows them to develop their olfactory profile and preferences to guide them through a range of over a hundred fragrances.Leveraging neuroscience,Yves Saint Laurent Beauts Scent Station offers a 25-minute in-store experience
123、 that defines the customers emotional profile using a headset connected to an electroencephalogram(EEG)that detects brain stimulations,along with an artificial intelligence algorithm that determines the fragrances most likely to be pleasing.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.202
124、3 ReportComit Colbert|Bain&Company,Inc.20Digital tagsinitially regarded as a technology for internal,behind-the-scenes useare now evolving into tools that extend the relationship between the sales associate and the customer.NFC chips integrated into products are beginning to be used as additional to
125、uchpoints with customers:Sales associates can use them to suggest maintenance,repairs,or other services.The Maison RIMOWA will offer its customers the ability to register products and download a certificate of authenticity and ownership stored on the blockchain,leveraging the technology provided by
126、the startup Selinko and the Aura Blockchain solution.According to Hassan Benahmed,Chief Information Officer at RIMOWA,NFC technology“not only allows for easy verification of product authenticity but also enables the simple digital transfer of the authenticity and ownership certificate onto the AURA
127、blockchain in case of resale.”Taking the customer on a journey through the brands universeThe second set of use cases is even more immersive.It elaborates on the brands narrative and image,without being tied to a specific product.It transports customers beyond the boutique and can also enhance the M
128、aisons events.Christophe Bertin,International Retail Director at Cartier,elaborated on the opportunity:“One of the objectives of technology is to stir up surprise beyond its functional aspect,to offer memorable and unique experiences to our customers.Discovery becomes a pleasure,bordering on enterta
129、inment.It is in flagships and boutiques oriented toward local clientele where we can implement this type of technology,in places where customers are able to spend more time.”For example,Cartier has introduced interactive holographic presentations of its high jewelry collections in Shanghai,where cus
130、tomers can not only observe the products from every angle but also zoom in to discover the jewelers craftsmanship.Similarly,Van Cleef&Arpels has developed a waiting area in its Place Vendme boutique to“take customers on a journey through a discovery of its heritage and craftsmanship,”according to Al
131、ban Belloir,International Retail Director at Van Cleef&Arpels.He adds:“Technology can help us manage waiting times intelligently,so that the customer remains emotionally connected to the brand before their interaction with the sales associate.”Considering the substantial investments,larger companies
132、 are unsurprisingly progressing faster in this second category.Beyond the size criteria,some Maisons are more daring in exploring new technologies,while others are more reserved,choosing not to fuel their brand communications with these digital experiences.LUXURY AND TECHNOLOGY.Toward the Boutique o
133、f the Future.2023 ReportComit Colbert|Bain&Company,Inc.21The invisibility cloakThere is demand from a significant proportion of customers for immersive experiences,regardless of their age.This demand is even more pronounced among Chinese clientele(10 to 20 percentage points higher than in France and
134、 the United States).However,discretion takes precedence.Among all the experiences that these tools offer,robotic assistancewhich is the most visibly identified as technologicalis the one that customers reject the most:19%of respondents feel that a robot would diminish their experience(up to 22%in Fr
135、ance and 29%in the United States,compared with just 5%in China);37%do not wish to use it.Technology should not be a distraction within the customer journey:The additional emotion it provides should be delivered in subtle touches or integrated into dedicated spaces.“We create specific zones in our st
136、ores for technology-enabled experiences,”explains Pierre-Emmanuel Placette,International Head of Retail Solutions Development at Cartier.The immersive space,named Studio Treize,offered by the Maison in Chengdu(augmented reality,hologram to narrate the brands heritage and craftsmanship)is integrated
137、within the boutiques journey.The Looking Glass,the recently developed in-store virtual try-on solution by the jeweler in partnership with Jolibrain,is concealed within a decorative element:a lamp on a desk.Pop-up boutiques can serve as technology catalysts.“Its important to be cautious with the use
138、of new technologies so as not to become trivial or superficial.To bring life to our collections,we often use digital experiences in an event or pop-up setting,for short periods,”confirms Alban Belloir,International Retail Director at Van Cleef&Arpels.It was,for example,in this context that Jacquemus
139、 presented an automatic handbag dispenserprimarily a marketing operation,but one that highlights the need for dedicated spaces.The Browns exampleBrowns,the luxury multibrand boutique owned by Farfetch,serves as the groups laboratory to define and implement its vision of“Luxury New Retail”:a complete
140、ly connected and seamless customer experience between the physical and online worlds.The connections between Farfetchs infrastructure,the Browns website and apps,and in-store operations form the foundation of a unique experience at Browns.The Browns app for customers is the gateway to the experience
141、 pre-,during-,and postvisit in the boutique.At home,while browsing a magazine or social media,the customer can use the visual search feature in the Browns app to find similar items in the Browns catalog,add them to her wish list,and book an appointment in the boutique to touch and try out those prod
142、ucts,while getting advice from her stylist.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.22Once in store,she is warmly greeted and guided by her stylist through the experience;her fitting room is ready with preselected pieces and,if the customer is
143、 willing,a connected mirroractivated as the garment equipped with RFID tag enters the fitting room,showing how it can be styled,displaying other colors and sizes available.On the mirror,the stylist can tap the items not in stock in the store to complete looks and provide styling recommendations.“The
144、 connected mirrors are not there to distract attention away from the physical product,but to bring them to life at the point of consideration and consultation,”says Vishal Katelia,Senior Head of Customer&Retail Innovation strategy at Farfetch.In addition,most of the augmented experience is brought t
145、o life through the Browns app when the customer is walking through the store with her stylist:Zoning technologiesespecially Bluetooth beacons,QR codes,and NFCtrigger the right content at the right location to enliven the collections and amplify the craftmanship behind each product,as well as bring t
146、he story of Browns to life.“This is not about technology,but how to leverage tech to enrich the relationship between the customer,her stylist,and Browns to bring an extra layer of experience to the journey to create a personalized mini-store for every single customer,”adds Katelia.The customers app
147、is mirrored by a sales associates app,aiming at empowering them with a go-to tool that enriches the customers experience and provides value through enhanced relationship-building opportunities vs.manual operating tasks.Through their integrated app,the stylist is connected to a global view of invento
148、ry,to the customer profile,to the store operations to control the mirrors and the stock runners,and to the payment and order management systems,all to power a personalized experience for the customer in their presence.Later,when the customer is no longer in the boutique,the sales associate can push
149、items to the customers wish list to continue conversations and facilitate further engagement.Browns is pioneering a new approach to the stylists role and recruitment:Each of them is both a salesperson and an influencer,bringing to the boutique their own community,and triggering new events and partne
150、rships.“It was very important for us to lean into this new angle of who the sales associate of the future is.Our team are a unique mix of ambassadors,community engagers who are fluent in articulating how to leverage tech to enrich the retail experience holistically.The connected experience is co-cra
151、fted with them,”Katelia concludes.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.23Technology to improve the flow of customer journeys and operations Minimizing waiting times from entering the boutique to payment“The first 20 seconds in a store are
152、crucial for either reassuring or creating a sense of frustration.This is where technological tools can play a role to transform this moment in an immersive way.”Christophe Bertin,International Retail Director at CartierWaiting frustrates 58%of customers(up to 71%in France).New technologies can enhan
153、ce the customer journey both when entering the store and throughout the discovery and purchasing experience,whether its to free up a sales associate,receive information,stay informed about product availability,try a product on,or pay.Waiting becomes irritating,especially since it can undermine the p
154、erception of a luxurious experience,as stated by an American customer:“Waiting in line never gives a feeling of luxury,no matter what brands do to entertain their customers.”LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.24Share of customers citing
155、as a frustration when going to a luxury boutique28%28%27%25%23%22%21%20%18%16%16%Waiting timeSales associate attitudeProduct unavailabilityProductnotavailableLack ofinformationon stock,price,etc.Aggressivesales practicesLack of personalized adviceWait for theproduct before trying itWait for asales a
156、ssociateto becomeavailableWaitat the checkoutIssues with returns/exchangeLimitedpaymentoptionsWait outside the boutiqueLack ofproduct traceability informationSource:Comit Colbert and Bain&Company consumer survey(June 2023)Figure 8:The top frustrations for customers when shopping in a luxury boutique
157、58%47%46%Proportion of customers citing as one of their four biggest frustrationsWaiting timeSales associateattitudeProduct unavailabilitySource:Comit Colbert and Bain&Company consumer survey(June 2023)LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.
158、25Appointment scheduling is one way that luxury brands are adapting to their customers demands,by anticipating their visits and preparing interactions with sales associates.For more spontaneous visits to the store(tourists exploring,impulse buyers,admirers of window displays,etc.),queue management t
159、ools allow customers to maintain their place in a virtual queue by scanning a QR code,letting them engage in other activities until they receive a notification of their impending turn.This is,for example,the approach chosen by Cartier in China.Depending on product category,there are different ways t
160、o handle situations in which a customer is waiting in-store to try on an item.For ready-to-wear or accessories,RFID tags can instantly show if an item is available and where it is(for instance,in the backroom,in a display case,on a shelf,or being tried on by another customer).Deployed by many luxury
161、 brands on each product,“RFID enables much faster stock entry,product tracking in-store,and analysis of product conversion rates,”explains Orbis Advisings Rinville.“With the time saved and this information,brands can dedicate even more personalized moments with customers,thus strengthening their loy
162、alty.”However,RFID technology isnt appropriate for jewelry due to technical constraints related to the size of pieces and interference with the metal of display cases.“During events featuring a limited number of creations,we can precisely geolocate real-time pieces.We are currently testing innovativ
163、e technologies to localize all products on a boutique scale,”notes Cartiers Placette.A comprehensive understanding of customer movements within a retail space could also potentially streamline traffic flow and enhance cross-selling opportunities.While such knowledge already exists for online journey
164、s through the use of cookies,applying it to physical stores is still largely experimental.Creating a heatmap of hotspots within the store(paths,traffic density,time spent in each area,products touched and tried on,etc.)using cameras and visual recognition technology,and then analyzing this data with
165、 artificial intelligence algorithms could generate recommendations for in-store navigation flows(category presentation order),display methods(eye-level shelving,window displays,hangers),as well as arrangement of collections(by category,product type,color).This wealth of information has the potential
166、 to improve both the customer experience and store performance.However,several constraints,such as the high level of investment required and regulations(especially the EUs GDPR rules,which restrict technologies such as phone tracking or visual recognition)need to be addressed before sustainable solu
167、tions can be deployed on a larger scale.Some leading specialist retailers seem to be more advanced in analyzing in-store customer traffic.One of them,for example,has deployed customer flow mapping solutions to meet specific operational needs,such as optimizing the visual merchandising or adjusting t
168、he number of sales associates per boutique area.Integrating regulatory constraints,the solutions developed by this specialist retailer combine different technologies to collect data:infrared sensors to count boutique entries;detectors with RFID sensors at certain strategic locations and in fitting r
169、ooms.For this retailer,there is no relevant turnkey solution:Technological solutions for analyzing in-store traffic must be tailored to specific operational use cases that can create value for each brand.This player aims to recreate the physical equivalent of the online experience for each product,i
170、n order to better understand and optimize product performance.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.26The payment processfinal stage of the in-store customer experiencecan sometimes lead to frustrations due to waiting times and impact the o
171、verall emotional experience.Some players in industries other than luxury are ahead in this regard,offering the option to pay anywhere without leaving the sales associates side,using mobile payment terminals or applications on the tools at their disposal.“These players,especially tech giants,are sett
172、ing very high experience standards,”says Thierry Lamouroux,Chief Commercial Officer at Boucheron.“We must integrate this level of expectation into the experience we provide to our customers.”Apples Tap to Pay is currently being rolled out across LVMHs boutiques.It enables sales associates to accept
173、payments through Apple Pay,contactless credit cards,and other digital wallets anywhere in the store using their iPhone,regardless of the purchase amount.One of the giants in specialized retail has invested significantly in making its customers shopping experience more fluid.The customer application
174、gives access to a range of functionalities activated by pushing the store doors.Customers can scan a product themselves to check stock availability,activate their loyalty card,or book an appointment online in advance of their visit.Optimizing stock management The strong performance of the luxury sec
175、tor(the luxury personal goods market reached record levels in 2022,23%above the pre-Covid level of 2019),the associated accelerated growth in volumes,and the complexity of boutique supply have made the adoption of technologies for improved inventory management even more relevant.We have observed sin
176、ce last year significant progress in the adoption of RFID chips(close to a third of Maisons were already using them last year).Their use continues to spread in the luxury sector,even though not all functionalities have been activated yet.Lacoste,for example,is a pioneer in this field.“RFID is one of
177、 our operational efficiency levers.It speeds up the inventory process and makes it more reliable.It reduces the time to find and move pieces from the storehouse in our large boutiques.We also improve the reliability of our store inventory and our ability to allocate products in real time,”assures Ol
178、ivier Peil,Digital acceleration and Innovation Director at MF Brands Group,Lacostes parent.For most Maisons,real-time visibility of stock is not yet in place.Boutiques are not equipped with as many RFID-equipped detectors as required to enable the use of all the functionalities of the tool,aiming no
179、t to compromise the boutiques design and to maintain the standards characteristic of luxury Maisons.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.27Furthermore,the Maisons began transitioning several years ago toward optimizing the assortment avail
180、able in boutiques and better anticipating the necessary stock per point of sale.Algorithmic solutions allow for increasingly precise recommendations based on a wide range of internal and external Maison data.The main challenge facing this automation of product allocation in boutiques lies in gaining
181、 teams acceptance of automated decision making.Technology must not become a black box.Boutiques should have complete transparency regarding the criteria that guide the selections of offered products.The Maisons have been exploring new solutions to refine the accuracy of these stock allocations in bo
182、utiques for a few years now:“We are convinced that artificial intelligence can allow us to optimize our open-to-buy.At the same time,we need to be faster and more precise in replenishing our boutiques,”says Sorin Ciocan-Vladescu,Group Supply Chain and Logistics Director of the Kering Group.Today,thi
183、s technology is widely used by Maisons across a wide range of use cases,both within and outside the boutique.Developing it to improve replenishment and thus product availability has become a priority for everyone,big and small,including Kering,which has already deployed such solutions at Gucci after
184、 several years of testing and aims to generalize these tools across the Maisons of the group.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.28Generative artificial intelligenceThe revolution of artificial intelligence has been taking shape for sever
185、al years now,particularly with automation models such as IBM Watson or conversational AI like Google Dialogflow.A new inflection point has been reached today with the launch of GPT-4 and similar models.These new models have notable characteristics:They are designed for general purposes and can pass
186、the Turing test making it difficult to determine if youre conversing with a computerthey are also trained on larger datasets and can understand and speak multiple languages.We observed last year in the luxury industry that 27%of the surveyed brands had already adopted artificial intelligence for cus
187、tomer engagement purposes(with a further 17%planning to do so by 2025)and 19%for process optimization(with a further 29%planning to do so by 2025).We can now expect this number to increase significantly with the rise of generative AI,reaching around 80%of tests.Indeed,we are witnessing daily experim
188、ents across the value chain of luxury Maisons with use cases ranging from customer engagement and sales support to applications in the back office.The most advanced Maisons have prioritized testing customer use cases with AI-augmented sales assistants or chatbots to support sales associates,even tho
189、ugh nothing has been fully deployed and made visible to the customer yet.These Maisons are at the same time actively considering the impact of generative AI on their internal procedures,including those related to human resources(resume/CV management,job posting,employee onboarding),procurement(gener
190、ating requests for proposals,analyzing and evaluating supplier responses),or legal affairs(contract drafting,identifying inconsistencies in certain legal documents).Some applications remain more sensitive for luxury Maisons,such as the creative domains where each Maison must preserve its unique insp
191、iration to maintain its distinctiveness and brand image.Generative artificial intelligence could help designers to imagine the shapes and creations of tomorrow,based on a large amount of data on trends,colors,etc.These tools are complementary and enhance designers capabilities,without replacing them
192、.The experiments seen so far are very promising and can have a positive impact on both the customer experience and the engagement of industry employees.By intelligently integrating generative AI technologies and involving employees early in the thought process,Maisons can gain a competitive edge in
193、this area and offer unique experiences for customers,products more in line with their expectations,and even more personalized interactions.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.29Imperatives for the luxury sectorA cultural and behavioral tu
194、rning point The cultural awareness of technological necessitya major challenge highlighted in our report last yearis beginning to reach a certain level of maturity that requires active support.Some tools originating outside luxury are no longer disregarded,and new specific use cases for the sector a
195、re starting to emerge.Today,the Maisons have a clarified vision of how they want to use technology in boutiques,primarily to serve a customer-centric approach.It is now essential to convince the entire team of sales associates,who may sometimes perceive its deployment as a threat,by reassuring them
196、about the fundamental role they continue to play in the customer journey.Training is key for the development of new skills:Beyond the tools functionalities,it will help standardize behaviors,posture,and gestures.This includes how to hold an iPad elegantly and type on its keys,how to be there for the
197、 customer without obstructing their view,as well as which tools to activate and when.Chlo has adopted a native app called Chlo Academy,initially designed to support sales associates during the launch of new products.It has now entered a second phase dedicated to digital and technological aspects to
198、accompany the Maisons customer strategy deployment.The app provides advice to encourage behavioral evolution.The startup ecosystem is actively providing increasingly sophisticated solutions for the industry.For example,360Learning offers Maisons a training platform that empowers sales associates to
199、create their own content(with the support of generative AI),thus promoting transversal learning.New sales associate profiles are emerging.Those profiles are younger(either in age or in mindset),experienced in digital practices,and more intuitive in the use of applicationsespecially those related to
200、customer relations.This recruitment strategy is also shared by Cartier:“We tend to hire professionals with slightly different backgrounds,particularly valuing profiles with experience in hospitality,”states Christine Lacire,International Business Skills Development Director at the jewelry company.Ne
201、w behind-the-scenes roles are also noticeably supporting sales associates in stock management and inventory.“As our boutiques become hubs,we are developing roles dedicated to back-of-house operations that can evolve into merchandising and retail operations functions,”Lacire adds.LUXURY AND TECHNOLOG
202、Y.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.30Adapting to the new definition of the customer journeyThe complexity and omnichannel nature of the new customer journey radically change the approach to customer loyalty.The relationship can no longer be thought of solel
203、y from the perspective of the sales associate or even the boutique.It must be cultivated on a broader scale that encompasses the entire brand.Its necessary to break away from the historical culture of individual customer ownership and eliminate conflicts between different channels.Incentives(bonuses
204、,variable compensation,etc.)need to be reimagined,encompassing both physical boutiques and online purchases.Silos must be broken down.“The concept of customer loyalty tied to a specific sales associate needs to evolve with omnichannel strategies.The customers affiliation is no longer tied to a speci
205、fic store but spans multiple locations.One solution is to incorporate average customer retention per sales associate into incentive systems,regardless of the purchase location.Other criteria,such as after-sales service,which plays a vital role in customer retention,should also be considered,”states
206、Cartiers Bertin.There is also a need to train sales staff in after-sales service:This moment,sometimes perceived as difficult to manage,can be converted into a sales opportunity.Necessary investments in information systems and data management architectures.As expected,luxury Maisons and groups have
207、embarked on comprehensive digital transformation programs to align the architecture of their IT systems and data platforms,ensuring unified real-time information flows.This encompasses data on customers,products,pricing,stock,and logistics.These data points need to be captured across all touchpoints
208、 and flows,while maintaining their quality and adhering to the strictest security standards.The crux of the matter now lies in the enrichment and intelligent analysis of this data,transforming it into value-added use cases.The architecture of IT systems is undergoing modernization to facilitate exch
209、anges between stores and digital platforms,enable the integration of third-party solutions,and accelerate the pace of innovation to enhance the customer experience.Within the group,the harmonization of solutions and platforms among Maisons is underway.It aims to provide smaller Maisons with access t
210、o innovation.“Kerings firepower and significant investment capacity allow it to launch pilots with emerging technologies,incorporate feedback,and then deploy the best ideas to the Maisons,”notes Grgory Boutt,Chief Client and Digital Officer of the Kering group.The scale effect undoubtedly works in f
211、avor of larger companies,and smaller ones would benefit from joining their efforts and coming together within innovation hubs.Moreover,the data alone doesnt define the customer approach of the Maisons but rather how they use it,similar to how a tanner can supply different leather goods makers withou
212、t producing identical products.Agility and breaking down silos are also key to success in this regard.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.31Lastly,the Maisons are working to provide intuitive tools to support customer relationships and si
213、mplify the daily tasks of sales associates.The company YOOBIC offers an all-in-one business app for this purpose.It integrates internal communication,as well as the ability to perform tasks(checklists,visual merchandising,marketing operations,inventory management,reporting needs to headquarters)and
214、train via mobile learning.In a more practical yet equally important manner for the functioning of these tools,the Maisons will need to rely on excellent in-store connectivity to ensure the seamless execution of technological experiences.but also in the very architecture of the boutique The deploymen
215、t of technologies in boutiques must be considered in conjunction with the layout of the place:for instance,elimination of traditional cash registers,or creation of dedicated areas for immersive experiences and remote sales spaces.Logistics and storage areas will also need to evolve to adapt to task
216、automation,especially inventory-related tasks.In a broader sense,the boutique itself becomes a mini fulfillment center as it needs to accommodate the omnichannel nature of the customer journey.It will involve spaces suited for shipping and receiving products between boutiques.“Today,the supply chain
217、,retail,and merchandising need to work hand in hand.The role of the Maisons is to push and support such an organization through technological tools that unite the teams,”concludes Kerings Ciocan-Vladescu.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,In
218、c.32MethodologyThe study was co-conducted by Bain&Company and the Comit Colbert between April and June 2023.Four main sources of data were used to carry out this study:1.A quantitative online survey targeting luxury customers.The sample was drawn from three countries(France,United States,and China)a
219、nd is representative of luxury customers in terms of gender,age,and consumer categories(from high-net-worth individuals to aspirational shoppers).This survey allowed us to better understand the reasons for visiting boutiques,significant moments,customer frustrations,and their appetite for a range of
220、 use cases supported by technology in luxury boutiques.2.Qualitative interviews with luxury customers conducted by Bain Consumer Lab.These interviews tested certain technology use cases in boutiques with luxury customers based in France,China,and the United States.3.Interviews with leaders from Mais
221、ons,groups,and technology partners to specify technological use cases within the companies.4.Various documentary research and Bain&Companys experience.LUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportComit Colbert|Bain&Company,Inc.33AcknowledgmentsThe Comit Colbert and Bain&Company
222、 would like to sincerely thank all the participants in this study.It could not have been conducted without the Maisons,groups,and technology partners who agreed to share their recent technological advancements.MEMBERS OF THE COMIT COLBERT:Tracy Arzel,Omnichannel and Client Experience Director,Bouche
223、ronLaura Cals,CEOs Chief of Staff,BoucheronAgathe Henaux,International Retail Excellence Manager,BoucheronIsabelle Kermarrec,Quality and International Aftersales service Director,BoucheronThierry Lamouroux,Chief Commercial Officer,BoucheronMaan Al Ewaiwi,International Retail Experience Manager,Carti
224、erChristophe Bertin,International Retail Director,CartierChristine Lacire,International Business Skills Development Director,CartierPierre-Emmanuel Placette,International Head of Retail Solutions Development,CartierAngeline Durand Sastre,Head of Fashion Europe,CHANEL Mode Catherine Rebours,Internati
225、onal Communication Director,CHANEL ModeAnglique Rivire,French Press Service Director,CHANEL ModeMarco Gentile,Chief Commercial Officer,ChloAude Vergne,Chief Sustainability Officer,Chlo Guillaume Legay,International Retail Director,GuerlainCcile de Saint Martin,Directeur Central Supply and After-Sale
226、s,HermsSophie Wadoux,Retail Activities Tools and Projects Director,HermsGrgory Boutt,Chief Client and Digital Officer,KeringYun-Hi Lee,In charge of HR strategic projects,KeringSorin Ciocan-Vladescu,Group Supply Chain and Logistics Director,KeringSverine Darbois,Client Experience,Retail&E-Commerce Di
227、rector,LongchampCdric Aumonier,Business Partner,Lorenz BumerIsabelle Durand Richard,Global Chief Client Officer,LouboutinOlivier Peil,Digital acceleration&Innovation Director,MF Brands GroupMatthieu Rinville,Founder,Orbis AdvisingLUXURY AND TECHNOLOGY.Toward the Boutique of the Future.2023 ReportCom
228、it Colbert|Bain&Company,Inc.34Hassan Benahmed,Chief Information Officer,RIMOWALaurent Aymard,Chief Operations and Financial Officer,Saint LaurentAlban Belloir,International Retail Director,Van Cleef&ArpelsSome members of the Comit Colbert took part in this study but asked not to be named.TECHNOLOGY
229、PARTNERS:Benjamin Marchal,Chief Operating Officer,360Learning Valentine Fort,Account Executive,Bambuser Louise Haushofer,Directrice Stratgique Client,BambuserVishal Katelia,Senior Head of Customer&Retail Innovation Strategy,FarfetchOlivier Adler,Founder and Chief Executive Officer,LivstickSylvain De
230、lteil,Vice-President Business Development Europe,Perfect CorpYves Curtat,Founder and Chief Executive Officer,Retail ReloadLaurence Janssens,Chief Executive Officer,SelinkoJean-Charles Lepetit,Vice-President Marketing&Partners,YOOBICINNOVATIVE RETAIL BRANDS:Hali Borenstein,Chief Executive Officer,Ref
231、ormationThe authors would like to thank Ginevra Bersani and Mathis Favier,consultants at Bain&Company France,for their participation in the study and their contribution to this report.Founded in 1954 by Jean-Jacques Guerlain,Comit Colbert is a unique collective gathering 93 French luxury Maisons,17
232、cultural institutions,and 6 European luxury Maisons.Through its members,Comit Colbert unites 14 different mtiers:crystal,leather goods,design,publishing,faence and porcelain,gastronomy,haute couture and fashion,jewelry and horology,music,silversmithery,luxury hotels,fragrance and cosmetics,heritage
233、and museums,and wines and spirits.Comit Colberts mission is conveyed in its raison dtre:to passionately promote,to sustainably develop,and to patiently transmit French savoir faire and creation in order to infuse a new sense of wonder.Our actions aim to collectively promote French art de vivre on th
234、e world stage,to preserve French savoir faire and creation,and to participate in their transmission to new generations.Bain&Company is a global consultancy that helps the worlds most ambitious change makers define the future.Across 65 cities in 40 countries,we work alongside our clients as one team
235、with a shared ambition to achieve extraordinary results,outperform the competition,and redefine industries.We complement our tailored,integrated expertise with a vibrant ecosystem of digital innovators to deliver better,faster,and more enduring outcomes.Our 10-year commitment to invest more than$1 b
236、illion in pro bono services brings our talent,expertise,and insight to organizations tackling todays urgent challenges in education,racial equity,social justice,economic development,and the environment.We earned a platinum rating from EcoVadis,the leading platform for environmental,social,and ethical performance ratings for global supply chains,putting us in the top 1%of all companies.Since our founding in 1973,we have measured our success by the success of our clients,and we proudly maintain the highest level of client advocacy in the industry.For more information,visit