Glossy – Google “Balenciaga sock boots,” and a line up of different retailers arrange themselves on the results page, all offering the same item for the same price. If you have the $995 needed to actually make the purchase, you’d be faced with options to buy from Nordstrom, Net-a-Porter, Farfetch, Ssense, Bergdorf Goodman, Matches Fashion, or Balenciaga’s own e-commerce site, in that order. Tweak the search — remove “sock,” for instance — and the same retailers show up again, this time in a new order.
Who ends up making that sale, and why, is a question marketers at emerging luxury marketplaces like Farfetch, Net-a-Porter and LVMH’s 24 Sèvres are fighting to solve. It’s crucial, since they’re largely competing on the same inventory, save a few brand or collection exclusives here and there.
Paid search drives business, but for these companies to move away from the expensive acquisition strategy, there’s more at work in the path to purchase than who appears first in a Google search.
“For this industry, it’s more nuanced than who can buy up the most SEO,” said Ken Morris, principal at Boston Retail Partners. “Luxury customers need to be taken care of and catered to, and there’s an different playbook to follow when it comes to both getting them in the door and keeping them there.”
“The luxury customer is not the average customer thanks to exclusivity,” said Morris. “There are savvy digital strategies behind sourcing potential customers by linking together lifestyles — people in certain clubs, yacht owners, travelers. You can sift through purchase histories across other industries and zero in, if you know how to use that data properly. It’s a matter of keeping track of these people, and then making sure the value of acquiring them is greater than the cost of doing so.”
“Taking care of the luxury customers you have isn’t a simple business. They need concierge, white-glove treatment and the people who provide it are the people who win,” said Morris. “This is incredibly important when you’re in a field where 20 percent of your customers drive 80 percent of your business.”
Read Full Article: Fashion aggregators duke it out in a crowded market