Client: A leading luxury products manufacturer
Area of engagement: Channel optimization
The global luxury products industry typically comprises of end-user products such as fashion, drinks, fragrances, cosmetics, watches, and jewelry. The growth of the luxury products industry is marked by the emergence of millennial luxury customer segments, changing consumer behaviors, and increasing international travel. Additionally, factors such as the advances in online markets and the increasing preference of premium products over cost-effective products will contribute to the growth of the luxury products industry. As a result, firms operating this manufacturing space are turning toward the latest retail industry trends to optimize their prices and ranges to ensure balanced growth for both local and international markets.
However, our analysis of the recent retail industry trends indicates that the luxury products manufacturers are facing challenges in terms of:
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- Reduced number of brand and retail outlets: Lately, the luxury products space is witnessing a relatively lesser competition when compared to other global industries. The rising tax affiliated with the luxury products is compelling organizations to sell their products on e-retailing platforms. Additionally, setting up physical store requires high capital investments and protocols from government authorities when compared to the online platforms.[spacer height=”20px”]
- Economic uncertainty: The consumer spending habits have greatly affected owing to the recent US presidential election and the Brexit issue. The recent economic fluctuation has lowered customer confidence, and consumers are spending relatively less on luxury products. To counter this situation, firms are forced to sell products at relatively marginal profits, thereby hindering sales of luxury products.
Many such challenges are compelling luxury products manufacturers to leverage the use of channel optimization solutions. Channel optimization solutions help firms garner information on customer behavior patterns and nurture the most profitable customers. These solutions also help firms effectively manage customer data and streamline workflow efficiencies.
The Business Challenge
The client, a leading luxury products manufacturer with business operations spread across the globe, wanted to identify the channel usage pattern and devise robust channel optimization strategies to maintain optimal performance at all customer checkpoints. This is because the client was facing predicaments designing collaborative channels and promoting multi-channel engagements. The client wanted to understand the latest retail industry trends further and anticipate the future customer behavior.
The Solution and the Business Impact
With the help of Quantzig’s channel optimization solution, the luxury products manufacturing client gained insights into ways to offer optimal customer service experiences. The client also gained a better understanding of diverse customer segments and identified opportunities to enhance workforce interaction. This helped them reduce wait times and cater to the requirements of the customers more efficiently.
Know more about the latest retail industry trends with the help of our channel optimization engagement, request for more information right away.
Channel Optimization Insights
The channel optimization solutions offered by Quantzig helps firms effectively keep track of the customers in terms of their channel usage, predisposition, and behavior. These solutions also help firms make use of social media platforms to reach out to the customers and offered enhanced, effective, and seamless retailing experience to the customers.