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Louis Vuitton demonstrates the importance of taking advantage of the point of sale in retail and establishes a benchmark of how the physical space is being taken advantage of.
A study of swagbucks He came up with the reasons why luxury products and experiences are purchased.
Louis Vuitton announced part of its flagship store located in the city of Paris, in France, will become a hotelTherefore, the experience that has been imposed in shopping centers where, in addition to stores, there is space for hotel rooms, was adopted by luxury stores and now they take advantage of the commercial spaces they have.
This diversification that physical points of sale have made, from not only having window displays, but now with spaces to be rented out to visitors, is a model that changes the rules of apparelwhere the brands of this industry diversify their business model, to one where there are sales channels through experiences.
Measured from the luxury industry, the decision to Louis Vuitton is spot on because there are three major categories millionaires spend in when they pull out their wallets based on a study de Bain: high-priced cars, with 437 billion dollars; luxury goods, with a cost of 278 billion dollars and hotels, to which they dedicate up to 187 billion dollars.
These categories give us an idea of how important consumption has become today, where key activities in the market have become, such as those that have to do with the ability to take advantage of the commercial spaces in which many stores have evolved their spaces.
With this in mind, activities of weight in consumption based on experiences have been defined, especially by brands such as Vuitton.
Vuitton enters the hotel market
The idea that part of the Vuitton flagship store becomes a hotel is part of a very important element, the decision was announced by michael burke, CEO of the brand, in an interview with WWDestablishing with this decision one of the most important establishments in the market.
According to the manager, the hotel will extend over 12,000 square meters of the establishment, which in one part will be a store and seeks to establish itself as the emblematic store of the brand throughout the world.
Taking advantage of commercial spaces is a resource that in luxury has been seen with very important examples, such as the one that at the time starred Tiffany and Co. The famous chain of jewelry stores became popular because it turned a space in its flagship store in New York into a cafeteria, with a concept inspired by the branding of the brand, such as tableware with the color blue Tiffanyas well as desserts and drinks inspired by the jeweler’s experience.
A series of guidelines have been imposed to take into account in the luxury market, where one aspect is important to consider in this segment as it is the one that has to do with the way brands get involved with the consumer.
In a Swagbucks study, 49 percent said the main reason they shop for luxury is for special occasions; 47 percent did it for the best quality of the products; 16 percent because through them they gained confidence.
Consuming luxury has become a habit where brands in this segment have established valuable practices to attract the attention of consumers who demand experiences to respond to them.
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