In my role as Head of Product Strategy at Farfetch, I’ve had the unique opportunity to assess our roadmap in tandem with the latest industry trends and innovations in e-commerce. These insights have allowed me to understand what works in luxury retail and where we still need to innovate to build the right experiences for high-net-worth-individuals.
Luxury e-commerce is evolving into a domain where personalisation, discovery, and immersive engagement are foundational.
From Customer - Centric Luxury to Profitability
Luxury retail has always emphasised service and exclusivity. I’ve seen firsthand the shift from product-focused strategies to customer-centric models. Two years ago, Mytheresa, shifted its focus to its top client tier, establishing itself as a leader in luxury e-commerce by prioritising the most profitable segment. Mytheresa’s success validates a fundamental truth: in luxury, creating loyalty and exclusivity for top clients is essential for long-term success.
During my time at Farfetch, we had similarly embraced a customer-first strategy focusing on creating emotional connections through seamless, personalised experiences. I worked to align product design, customer research, and product development, so that each development stage was connected to the overall customer experience and north star metrics.
However, as market dynamics evolved and CAC rose, it became essential to balance customer centricity with profitability. New features were designed and launched with the dual goals of maximising value for the customer while delivering sustainable revenue growth. With this “helicopter view” —from ideation through to launch—I’ve seen how every touchpoint can either elevate or detract from the luxury experience, such as an over-invested checkout that cannibalised resources for Discovery & Personalisation.
Hybrid Search
Discovery is perhaps the most challenging stage to replicate online. In luxury, it goes beyond functionality, yet innovations in hybrid search and AI-powered personalisation are trying to solve it.
Google’s recent upgrades to its Shopping platform with generative AI technology mark a significant shift toward hybrid search that combines keyword-based searches, image search, and conversational AI. The goal is to address a range of user behaviours, from targeted searches to casual browsing, all while guiding the customer towards products that fit their style or preferences. For instance, Google’s Gemini AI now offers personalised recommendations, using AI to analyse and categorise products for users based on various features .
Hybrid search can not only assists customers in product discovery but also serves as a bridge to a more interactive online shopping experience. A customer interested in a specific style, for example, may benefit from image-based search, while a conversational agent can provide tailored recommendations for customers who are still defining their preferences.
While traditional discovery hinges on the immersive ambiance of physical stores, digital tools such as Virtual Try-On (VTO), augmented reality (AR), and loyalty programs are creating online experiences that foster engagement. These tools can make the discovery process feel rich and interesting, even in an e-commerce environment where tactile engagement is limited.
From Transaction to Relationship-Building
In luxury, decision-making is often slower and more deliberate. Tailored communication that speaks directly to the customer’s needs and values fosters the kind of loyalty that lasts.
With AI-driven tools, brands can analyse data points, including purchase history and browsing behaviours, to deliver content, recommendations, and services that feel curated and meaningful.
For luxury customers, this translates into personalised messaging that honours their unique tastes and preferences. AI also plays a vital role in back-end operations, where it can optimise inventory management, automate translations for global shoppers, and improve content accessibility.
Personalised services, such as private viewings, styling consultations, and access to exclusive events, remain the gold standard for fostering loyalty and reinforcing a sense of exclusivity.
Conversational Commerce
Conversational commerce is quickly becoming a powerful tool. Through conversational AI, brands can now provide real-time assistance, help customers with considered purchases, and even tailor messaging based on the stage of the customer’s journey. For example, AI-driven agents can engage with customers who are contemplating high-value purchases, helping to answer questions, clarify details, and provide a personalised shopping experience. By tracking user interactions, brands gain valuable data to refine features and align closely with evolving client expectations.
The Road Ahead
As we continue to innovate and shape the luxury e-commerce landscape, the latest releases focus heavily on the discovery and exploration stages. While it’s challenging to replicate the emotional depth of in-store discovery online, these tools bring new dimensions to the shopping experience by making it engaging, relevant, and tailored to individual preferences, so luxury brands can cultivate customer relationships that are as enduring as they are exclusive.
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