Opinion: Why in-store experiences make or break luxury brands

With luxury brands facing significant challenges in China and around the world due to economic uncertainty, there’s no room for complacency or blaming market conditions. Instead, it’s critical for them to respond to the evolving expectations of today’s consumers. Over the past three years, many luxury brands have raised their prices at an unprecedented rate. Now, they face the challenge of delivering the value and desirability that justify these increases. Meanwhile, Gen Z is emerging as an increasingly influential force in the market, bringing higher expectations for luxury brands than ever before. This creates the perfect storm for many brands – forced to inspire at every touchpoint in a significantly elevated way while also catering to a new generation of clients for whom exceptional in-store and digital experiences are a must. The sad reality is that many luxury brands are luxury in ambition only, failing to deliver consistent and exceptional experiences when clients interact with them. The result is clearly evident in their reported financials. In luxury, the in-store experience is the most critical touchpoint between a brand and its clients. Yet, many luxury brands continue to underestimate its significance, leading to detrimental outcomes. A recent mystery shopper exercise I conducted for a leading global luxury brand unveiled a troubling reality: inadequate customer support and a lack of total attention are more prevalent than one might assume. The findings from this global mystery shopping initiative revealed that many clients felt ignored, especially when other customers were present in the store. The concept of luxury is built on making the client feel as though they are the center of the universe. When this fails, it undermines the entire brand promise. Long wait times, lack of privacy This breakdown in service extends beyond just personal attention. Luxury clients are accustomed to receiving the best, immediately and effortlessly. However, inconsistent product availability and long wait times are common pain points that disrupt the sense of exclusivity and convenience. When clients must wait or are informed that an item is out of stock, it contradicts the seamless luxury narrative brands strive to present. Moreover, high-net-worth clients prefer an atmosphere where discretion is maintained. Being in a crowded space or feeling observed while making decisions can be off-putting. Luxury shopping is not just transactional; it is a deeply personal experience. Undertrained staff: A silent brand killer Another overlooked element in luxury retail is staff competency. Employees who lack sufficient product knowledge or are inadequately trained in luxury customer service can significantly diminish the shopping experience. The ability to communicate the brand’s story and identify client needs intuitively is what differentiates a disappointing visit from an unforgettable one. Without transformative training, staff may struggle to embody the brand’s core values, leaving clients feeling undervalued and unimpressed. A recent study of thousands of luxury shoppers revealed that 65% of clients who ended their relationship with a brand did so because the customer experience fell “below expectations.” In luxury, it only takes 1.7 of these disappointing experiences for a client to walk away. The key takeaway: the experience may seem “okay” on the surface, but it becomes catastrophic when expectations are not met. 65% of clients who broke up with a brand did so because the customer experience fell “below expectations.” As client expectations continue to rise, more brands find themselves struggling to deliver. In every one of my luxury sales masterclasses, I see how salespeople absorb insights into the psychology of luxury purchases and the art of selling emotionally. At the heart of it all is the ability to connect on a deeper level. The power of attention During a recent luxury masterclass, I posed a simple question to participants: “What was your best recent luxury shopping experience and what was your worst?” The responses were telling. Not a single participant mentioned the store’s decor, product quality, or price point. When the experience was exceptional, clients spoke of how they felt valued and special. Conversely, when describing a poor experience, they unanimously highlighted how they felt ignored or unimportant. These anecdotes align with the mystery shopper feedback. The fundamental need for complete attention cannot be overstated. In luxury retail, clients expect to feel recognized, valued, and cherished. Any lapse in providing undivided attention – whether due to understaffing, poor clienteling practices, or competing client demands – can have lasting negative repercussions. Transformative training: The non-negotiable solution The solution to these prevalent issues is clear: transformative training. Comprehensive luxury training programs ensure that staff understand how to put clients at ease, convey detailed product knowledge, and create an environment where the client feels genuinely valued. Brands must realize that client experience is not a secondary concern but the very foundation of their success. In-store experiences must be treated as paramount, as they are the most visceral representation of the brand’s ethos. Transformative training serves as the bridge between an average visit and an extraordinary one. It is what turns a client’s experience from feeling like just another number to feeling like the most important person in the world. Luxury brands that fail to prioritize immersive training programs for their teams will struggle in these times of rapid change. The key is not only to meet but exceed client expectations. The in-store dilemma, with all its complexities, can be resolved through an unwavering focus on valuing the client at every step of their journey. This is a reminder that luxury is about creating extreme value at every touchpoint. It must be earned with every interaction – and never more so than now. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders to Watch.” He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.

Why in-store experiences are breaking luxury brands

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Why in-store experiences are breaking luxury brands