The Opportunity for Luxury Brands in China to Recreate Their Renowned Service for the Digital Era

Post by 
Matthew Ryan
Published 
July 10, 2020
Luxury Tiffany

In the 14 page white paper: “Digital Luxury Servicescapes: An Omnichannel Approach to Winning Luxury Consumers in China”, Re-Hub proposes a new omnichannel model for China luxury retail that offer brands a blueprint to not only digitally recreate the stellar VIP service they built their business on, but moreover provide this to all their customers.

Re-Hub is a Shanghai based business transformation agency working with retail and consumer goods brands in Asia. Over the last five years we have witnessed the Chinese retail landscape transform and adopt innovation at a blistering pace, while at the same time, perplexed that luxury brands have been conservative in terms of overhauling their business for the digital economy.

Asian luxury consumers

Service is a Crucial Element of the Luxury’s Allure

It is likely that reticence in the luxury sector to transition to online business models stems from a fear of losing the competitive advantage of their renowned service. Luxury brands have always offered more than just products, they create memorable experiences and personalized service is a big part of that. In a traditional luxury store, trained luxury sales advisors are equipped with decades of best practices and simultaneously take the role of brand ambassador, client advisor and facilitator (see model below). Up to now, this has been difficult to replicate online.

Traditional luxury retail servicscape

Re-Hub believes China’s advances in data and AI innovation have created an opportunity for luxury brands to create next level personalized service and customer experiences that will allow brands to wow their clients like they have done through their history.

How Can Luxury Brands in China Win in the Digital Age?

In Digital Luxury Servicescapes, Re-Hub builds a new model for omnichannel luxury retail that utilizes the full toolkit of both online and offline data collection methods in China. The amalgamation of this data is utilized to create amazing service experiences. A brief overview of this is outlined below.

Knowing Your Clients Through Data Collection in China

The majority of data collection should be via the WeChat ecosystem, in which brands can set up official accounts and mini-programs in order to engage with their customers. They are then able to build a comprehensive profile of their customers by tracking their actions and preferences, both online and offline.

Some of the most common actions are as below

WeChat Interactions and Actions

Offline encounters in physical stores are an equally important channel for data collection. Sales advisors are able to record specifics of conversations and information garnered from consultations. This data can be interspersed integrated with online data in a brands CRM to give a 360 degree view of customers.

Precisely Serve Your Customer

At every stage of the customer journey, no matter online or offline, the collected data can be leveraged to tailor personalized service and content.

For example, advisors can use the data to build personalized product assortments for clients. When a client arranges a consultation at a store, the sales advisor is able to consult data and arrange a product assortment in advance of their visit.  

Brands are also able to use this in-depth client data to better target client messaging and content, meaning that they only contact clients about events or products they are interested in and using the appropriate communication style for that individual. Additionally brands can build a content library for different consumer personas or consumers at different stages of the customer journey and offer this content at the appropriate conjuncture.

In Digital Luxury Servicescapes, Re-Hub provides a full set of strategies and a deeper dive into our new omnichannel model.

Download “Digital Luxury Servicescapes”

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