It’s an exciting new year for luxury retail and in this guide, we’ll run through our top 10 predictions for the sector in 2024.
As experienced commercial cleaners in London, we have certainly seen our fair share of impressive luxury outlets over the years.
Now a quick aside for any newcomers asking… What is luxury retail exactly?
It’s the segment of the retail segment specialising in high-end, premium goods, usually with a degree of exclusivity.
And it’s a growing sector, according to McKinsey. Take luxury fashion, for example – it’s set to grow globally by 3-5% in 2024.
But what are the trends set to drive this growth? In this guide, we’ll summarise some analysis from industry experts and provide a list of the top 10 luxury retail trends to watch out for in 2024.
#1 More collaborations
More and more luxury names in retail have started collaborating with younger brands to improve their reach with Millennials and Gen Z.
Think about the likes of:
- Adidas x Gucci
- Louis Vuitton x Supreme
- Balmain x Barbie
Expect to see that ‘x’ everywhere this year!
This is not just a trend for the big names though. Any luxury retailer, no matter how big or small, can pique their customers’ interest with an exciting new collaboration.
Since the COVID-19 pandemic, many of us have become used to working from home more often and joining video calls with colleagues or clients. As familiarity with live-streaming video meetings at work has grown, the same is now true for live events.
Luxury retail stores are capitalising, particularly in China, with the trend likely to take off in the US and UK too. Live commerce-initiated sales could account for as much as 20% of online sales by 2026, according to McKinsey.
For example, in fashion, you could host a live-streaming event from your store to show off the latest collection and allow viewers to chat with staff in-store. It’s a great way to stay top-of-mind when your customers are at home, increasing the chance that they’ll make an online purchase or come visit your store soon.
Luxury consumers are increasingly valuing craftsmanship, heritage and provenance in the products they buy.
This is leading brands to focus on products that are handmade or made with traditional methods.
Where there’s a story to tell, make sure your customers know just how special your luxury items are!
#4 Leveraging the metaverse
Speaking of Millennials and Gen Z, keep in mind that they may be engaging with luxury brands through digital media in various forms.
Louis Vuitton has made outfits for video game characters in League of Legends, for example, while virtual reality is also becoming more and more accessible via Meta Quest.
Many boutique luxury retail outlets may not see the metaverse as a key part of their marketing strategy. That’s understandable, but keep an eye on how your younger customers in particular are engaging with different luxury brands as technology continues to evolve.
#5 More mobile POS devices
In big luxury retail stores especially, customers don’t expect to wait. A long queue to pay can deter buyers.
Giving staff mobile point of sale (POS) or digital clienteling devices means you can reduce customer wait times and improve the customer experience.
Wherever customers are in-store, with a mobile POS your staff can manage orders, check the stock and even process returns on the move.
#6 Growing the second-hand luxury market
The second-hand luxury market is booming and a growing number of luxury brands are embracing it.
This includes launching their own resale platforms, partnering with consignment stores and accepting pre-owned goods as trade-ins.
Revenue from the second-hand luxury goods market was estimated at $10bn in 2023 and is set to keep growing during the next five years, according to Statista.
#7 More digital transformation
Digital transformation is ongoing – generative AI such as ChatGPT was the big trend last year and perhaps something similarly groundbreaking will come to light in 2024.
It can be an overused buzzword sometimes, but digital transformation can lead to a better customer experience and more efficiency for retailers.
That’s the case whether via in-store augmented reality installations, a chatbot customer service or a more integrated use of social media.
#8 More personalisation
On a similar theme, it’s well known that luxury consumers are increasingly demanding personalised experiences.
Therefore, retailers will likely keep responding by offering more bespoke products and services this year.
This could include tailoring product recommendations, offering personalised shopping experiences and providing concierge services.
#9 Greater sustainability
Luxury brands are increasingly embracing sustainability in their products, packaging, and operations. Take a look at our guide on how to improve sustainability in retail, including:
- Optimising your supply chain
- Using energy efficiently
- Considering product rentals
Sustainability in luxury retail also includes using eco-friendly materials, reducing your carbon footprint and supporting more ethical working practices.
When it comes to cleaning, sustainability is at the heart of everything we do – we regularly monitor our practices and supply chain to ensure our services are sustainable.
#10 More experiential retail
Last but not least, experiential marketing is a great way to increase your customer footfall. Just don’t forget about the importance of having a spotlessly clean store first – more on that shortly.
Experiential retail is a unique form of event marketing, using your in-store space to create in-person events that shoppers will love and remember. You can use interactive displays and much more to create a unique shopping trip for customers.
Final thoughts: Luxury retail trends in 2024
Some things change, while others stay the same… But whatever happens, presentation is key in luxury retail.
Ensure you have a clean and tidy store before capitalising on new trends, whether it’s for a live-streaming event or something experiential in-store. High quality boutique and retail commercial cleaners will help keep your store looking inviting to customers and prospects.
Perfect window cleaning can make all the difference for browsing high street shoppers. it may be worth considering some specialist floor cleaning too, if your events are bringing in higher customer volumes.
We are Think FM, providing a best-in-class commercial cleaning service in London. We’re experts in retail and boutique cleaning that makes stores sparkle for customers – to find out more, please contact us.
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