Navigating the Slump in Luxury Retail

Faisel Azeez

Co-Founder & CTO

May 16, 2024 - 5min read

ARTICLE

Navigating the Slump in Luxury Retail

Luxury retail experienced an unprecedented surge post-pandemic, with demand soaring for expensive goods. As aspirational shoppers joined the ultra-rich in a self-gifting frenzy, the industry seemed unstoppable. However, a few years on, the trend has reversed dramatically.

Decline of the Aspirational Shopper

The aspirational shopper has now retreated, and demand has sharply declined. China, the growth engine of global luxury, bears the brunt of this slowdown. Additionally, the pent-up demand from aspirational shoppers has vanished, exacerbating the situation. The excess savings and cash from pandemic-driven stimulus measures have dried up, leading people to prioritize experiences over material possessions.

Global Slowdown, but Regional Bright Spots

These headwinds have hit luxury retail hard. While strong brands with premium positioning continue to grow due to their pricing power (albeit at a slower pace), those appealing to aspirational shoppers struggle to revive their declining sales. Despite a general slowdown globally, the middle east region has emerged as a rare bright spot. From the data on our platform, we can see that the online luxury sales in the middle east has been strong, driven by both pricing and volume growth, clocking double digit growth over the past year.

Looking ahead, we remain optimistic that luxury retail will resume its long-term growth trajectory, fuelled by new wealth creation in emerging markets like China, India, and the wider global south.

Use The Opportunity to Elevate CX

As the luxury retail market recovers, many of our clients are seizing this opportunity to strengthen their brands by enhancing the customer experience. In the luxury sector, customer experience is not just a value-add but a core part of the value proposition. While some brands focus on revamping their physical store network, others are investing in improving the online experience, which can be more challenging to control compared to the in-store experience.

One often neglected aspect of the online experience is what happens after the customer has made a purchase. This post-purchase experience is critical, yet many brands falter by leaving it entirely in the hands of their delivery partners. At Carriyo, we help our clients streamline their online post-purchase experience by offering branded tracking pages, sending proactive delivery updates, gathering real-time customer feedback, and much more, ensuring the brand remains at the center of each customer interaction.

Fix Your Neglected Post-Purchase Experience

It's important to get the basics right first. Here are the top things we recommend if you are looking to elevate your e-commerce post-purchase experience.

  1. Offer Convenient Shipping Options: To provide the best delivery experience to your customers, you must offer the fastest and most convenient shipping options. Carriyo can help you quickly integrate with hundreds of fast delivery services, including same-day, 2-hour, and 4-hour delivery options.
  2. Automate Your Shipping Workflow: Prevent manual errors and delays by automating your shipping process. Let Carriyo automatically book shipments and generate labels while you only manage the exceptions.
  3. Monitor Your Service Levels: Fulfill your delivery promise by continuously monitoring service levels and customer feedback. Carriyo helps you stay on top of your shipping performance and fix problems, ensuring you never let your customer down.
  4. Keep Your Customers Informed: Delight your customers by keeping them informed every step of the way using automated notifications, reducing customer anxiety and calls.
  • Branded Tracking Pages: Create branded tracking pages that reflect your luxury brand's aesthetics and values, enhancing the customer's perception of your brand even after the purchase.
  • Proactive Delivery Updates: Keep customers informed at every step of the delivery process with proactive updates, reducing anxiety and building trust.
  • Real-time Customer Feedback: Gather real-time feedback to identify areas for improvement and enhance customer satisfaction.

The best brands never lose sight of their customers. We at Carriyo strive to make your job easier by providing you with the right tools to increase customer engagement and keeps your brand at the forefront.

Don't miss out on the opportunity to delight your customers and strengthen your brand in the post-purchase phase. Contact Carriyo today (luxury@carriyo.com) to learn how we can help elevate your e-commerce post-purchase experience.

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Faisel Azeez

Faisel Azeez

Co-Founder & CTO

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Joao Vieira

Joao Vieira

CRO at CARRIYO

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Joao Vieira

Joao Vieira

CRO at CARRIYO

Automate shipping operations and elevate post-purchase customer experience

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