In an in-depth analysis of the first half of 2023, Luxurynsight recently unveiled the strategies of 15 leading luxury brands. The study highlights the crucial emergence of pop-up stores, a trend that reveals a significant shift in retail approaches.
In an in-depth study, luxury intelligence specialist Luxurynsight has scrupulously analyzed trends for the first half of 2023, highlighting the strategies deployed by 15 leading luxury brands such as Balenciaga, Bulgari, Cartier, Dior, Gucci and Louis Vuitton.
And the study points to a central element: the emergence of ephemeral stores. Pop-up stores have established themselves as essential strategic tools for the luxury industry, offering flexibility, lower management costs and innovative opportunities.
In the wake of the pandemic, Luxurynsight observed a significant shift in luxury brands’ retail approaches. While the number of single-brand boutiques has increased only slightly, pop-up stores have gained in popularity, offering a flexible and innovative alternative. They offer a number of advantages. They offer brands the opportunity to explore new locations, launch innovative initiatives and test targeted marketing projects within department stores and multi-brand retail chains.
“In the four years since the start of the bird flu pandemic, the number of single-brand stores in the luxury sector worldwide has increased only marginally (0.5%), particularly in Asia-Pacific, Europe and the Middle East,” points out Luca Solca, senior luxury analyst at consulting firm Bernstein. He also highlights the trend for brands to open larger and larger stores.
Personalized experiences worldwide
Luxurynsight’s study highlights that innovation in luxury retail now relies on elements such as immersive installations, phygital integration, edutainment experiences and product personalization. “In today’s interconnected world, customers are looking for an engaging shopping journey that includes ultra-personalized creative experiences in line with their values,” says the study.
Pop-up stores are proving to be the ideal format for experimenting with these new approaches, responding to growing consumer demand for these experiences. They offer the advantage of being more cost-effective to run than traditional stores, giving brands the opportunity to establish themselves temporarily in prestigious locations.
According to Luxurynsight, 49% of luxury consumers believe that brands should offer more than just shopping opportunities in their stores. According to its projections for 2030, 80% of customers anticipate ultra-personalized in-store experiences, specifically tailored to their individual needs.
Asia, in particular China, is positioned as the main player in pop-up stores, followed by the United States, France, the United Kingdom, the United Arab Emirates, Italy, Germany, Mexico and other emerging destinations in Asia-Pacific. Luxurynsight points out that the top three locations selected in China are Shanghai, Chengdu and Shenzhen, followed by Beijing.
The examples of Louis Vuitton and Chanel
In December, Louis Vuitton announced the opening of its pop-up store in the prestigious ski resort of Niseko, Japan. Despite the presence of an extensive retail network across the Land of the Rising Sun, LVMH’s flagship luxury brand has opened several pop-up stores there over the years to maintain the enthusiasm of discerning local customers.
Positioned a two-hour drive southwest of Sapporo, opposite the elegant facilities of the Park Hyatt Niseko Hanazono hotel and offering views of majestic Mount Yotei, the Louis Vuitton pop-up is open until February 25, 2024. This ephemeral store offers a gallery space featuring a meticulously chosen selection of men’s and women’s travel luggage, leather goods, ready-to-wear, shoes, accessories, perfumes, watches and jewelry.
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Featured photo : ©Louis Vuitton
