Article in PYMNTS.com
Retail isn’t all about taking people’s money. Today, it’s also about telling a story and building an experience that makes customers want to shop with the brand again.
So, one might think it would be a no-brainer for luxury brands, which have such a legacy presence in the market, to be all over the latest storytelling modes, with exciting new ways to draw consumers into their rich and storied history.
Yet luxury brands have been slower than most other retailers to embrace digital innovation – for storytelling or for anything else. GPShopper found that only 3 percent of luxury brand’s revenue was coming from digital storefronts back in 2010, and that percentage is only expected to climb to about 12 percent by 2020.
GPShopper, which develops mobile apps for retailers, has an idea why the technology uptake has been so slow in this market, as well as a vision for a brave new luxury retail world – and a plan to help make it happen.
“Luxury brands have a rich heritage and history of storytelling,” said GPShopper CMO Maya Mikhailov. “They saw technology as antithetical to that. Now, they are increasingly realizing that their customers are on digital platforms using digital tools. If they’re not there, they’re losing out to other brands who are. We believe 2018 will be a pivotal year for luxury to embrace digital technology.”