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Key takeaways:
- New digital tools elevate customer relationships. From Whatsapp to AI-powered chat, luxury brands are adopting new digital customer service tools that provide humanised support and interaction. While some brands, like Loewe and Tommy Hilfiger, are focusing on facilitating direct contact through Whatsapp, others, like Brunello Cucinelli, are leveraging AI to enhance storytelling and brand discovery.
- Hospitality hotspots create new brand experiences. Several brands, including Kate Spade, Michael Kors and Ferragamo, have created branded gastronomy experiences, joining others like Fendi and Armani, whose hotels provide an immersive brand environment away from the store. These initiatives are helping brands cultivate more lifestyle relevance beyond the products they provide.
- Getting physical in emerging markets. Latin America — particularly Brazil and Mexico — and the Middle East have all seen significant store openings as luxury brands look to establish a stronger physical footprint there. New tax structures in Brazil and favourable joint venture terms in the Middle East are encouraging greater investment in these up-and-coming luxury locales.
A shuffle at the top
While Gucci has defended its top position in omnichannel since the last edition of the Vogue Business Index, there has been a shuffle in the top five brands, with Hugo Boss coming in second — followed by Burberry, Prada and Bottega Veneta — which maintained its fifth position from the last Index. While many of the top 10 performers for omnichannel have previously populated this space in previous Index iterations, some brands have switched places within the ranking. With competition fierce, the addition or removal of a single feature can have a significant impact on the Index ranking. Middle-tier and aspirational luxury brands appear to have been more affected by these minor changes, with a decline in Tory Burch’s live stock visibility and the removal of Longchamp’s offer to shop live with an advisor pushing down the overall performance rankings of both brands.
