Luxury E-Commerce
CONTEXT
We set out to define what it means to be a global platform for luxury—how we deliver services and experiences—to set the vision for where we want to be in the future as a global destination for luxury. As provider of Technology, Services and unique industry insight.
PROBLEMS WE NEEDED TO SOLVE
How does our reputation benchmark now and where do we want to be?
How do we decide which services to expand on?
What is the sweet spot for our partners in their ambition to deliver luxury service ambitions?
How might we use this type of framework to make decisions, prioritise change and how me measure our success?
APPRROACH
We assessed where Farfetch is compared to competitors (multi- and mono- brands) in the hard luxury goods industry (fashion, apparel, beauty) with desktop research, paid data and interviews with Partners and net worth individuals
Conduct Customer Base Data Analysis to identify customers with high potential to become our most valuable segment ‘Private Client’
Compile insights and recommendations to transform Farfetch into a luxury service leader (via case studies and insights on market leaders)
Delivery enhanced services & goods for higher segment customers and partners based on where they are today and where they want to go in the future
FARFETCH The leading global marketplace for luxury.
Farfetch is a leading global marketplace for the luxury fashion industry. The Farfetch Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and over 1,400 of the world’s best brands, boutiques, and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a global marketplace.
Marketplaces are high volume and relatively low margin compared to bricks and mortor retailing. This is compounded in Luxury where volume is commonly lower but with greater margins. The margins allow for investment in Brand & Customer experience.
This begs the question… how might we create a luxury experience with an e-commerce model.
RESEARCH GOALS
Deliver emerging luxury service trends and innovations to determine where the industry is heading and where innovation opportunities lie.
Compile insights and recommendations on how to establish differentiated credibility and authority in luxury service based on the market leaders in the space.
Goods or Services… or both?
COMPETITOR ANALYSIS & REVIEW
We segmented competitors into whether the businesses is a goods provider or a pure play service provider
Conducted mystery shops and experienced services of all brands and businesses first-hand
Created a framework to be able to assess all business with a consistent methodology
We ultimately assessed where Farfetch is compared to competitors (multi- and mono- brands) in the hard luxury goods industry (fashion, apparel, beauty.) We carried out desktop research, paid data and interviews with Partners and high-net worth with Private Clients.
Clear definitions and methodology for effective scoping and communication of research
Bespoke 'Magic Quadrant' style framework developed to assess FARFETCH against our competitors
Comparison tool to identify opportunities for differentiation and areas of potential value
A report grading FARFETCH and its competitors to define and size oppurtunity
Note: the full output in terms of strategic positioing, service assessment and commercial rational is confidential.
OPPURTUNITY
Once the discovery was completed this gave us clarity of focus areas and key principles to design and execute for
MOMENTS OF LUXURY JOY WITHOUT THE COST
Key Principles Identified - This outlines how we want our customers to feel
Exclusivity - A highly curated service for thats not for everyone
Personalistion - Passionately bepsoke with a thoughtful human-touch
White glove service - Service with distinct, effortless human-touch the feeling of quality
Access - Early access to benefits and perks to demonstrate value in custom
Status - We create a clear senses of status and faciliate relationships with fellow fashion lovers
With a clear target customer group we then design a service to help them progress through the loyality tier program. The was a clear need and gap because there was a group of high-potential customers that dkd within the current services that were on offer. The Companion Club was designed and launched to respond to this need.
THE SOLUTION:
FASHION COMPANION CLUB
The Companion Club aimed to design and pilot a new 1:1 online concierge, customer service proposition for over 900 high-potential customers in North and Central America. The business goal was to strengthen personal advisor relationships, enhance customer satisfaction, and boost revenue for the business.
Objective: The primary challenge was to meaningfully connect with high-tier customers, creating a personalized online concierge service that could drive repeat purchases and enhance the overall customer experience.
Luxury Concierge Service - Implemented a trial high touch concierge messaging service executed through social media to make product and styling and recommendations.
Luxury Delivery experience - Transformed the delivery experience for highest spending segaments, with expidited delivery, luxury packaging and inserts. Delivered by premium courier.
Product Exclusivity and Access - Created a sense of luxury through campaigns to create the sense of exclusivity and special access. Giving a customers value throigh the latest product drops and hot items. Plus access to Live sessions with designers and stylists
Access to an ‘Invite only’ Fashion Community - Create a sense of belonging and community for fashion lovers with a taste for luxury including; fashion media, behind close doors footage, blogs and forums
IMPACT & RESULTS (£)
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We measured the reputational impact ,Brand Consideration, Brand Perception and Affinity through Brand tracker and social listening analysis.
We saw significant increase during pilot and go live which gave realised benefit of 50k and a forecasted benefit 5OOk Annual Benefit - Measured by Customer Lifetime Value Metric established by the Date science team.
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We converged Service & Product Design, Product Management and Customer Service to deliver an Agile project from concept to first customer contact within 8 weeks
We developed an in house tool and repository of luxury insights and authority level knowledge. This provided our community of partners with insights for the luxury industry.
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62% of the targeted become at least a bronze tier customer
6% become Private Client (Highest tier and value customer)
Increased Gross Merchandise Value by 34.7% in the USA and 39.9% in Mexico.
A 13% increase in repurchase rates and an improvement