At CoolhuntingLab we know that the concept of “experience” is now more fundamental than ever to connect more and better with consumers and activate the economy. But we still wonder… How luxury stores will be in the future?

On this occasion instead of writing it ourselves, we have decided to share the article recently published by FashionNetwork.com written by Dominique Muret and translated into Spanish by Hernández Moya Sebastián because the article is so good and is so well explained, that even we could not do it better! And as you already know… at CoolhuntingLab.com we believe it is important to share and highlight the good work of other colleagues, and this is a very good one.

Original Title in Spanish: ¿Cómo reinventar las tiendas de lujo del futuro?

How to reinvent the luxury stores of the future?

It is evident that the physical point of sale is in decline, but it is not yet in the process of extinction. Opposite to that, it should play a fundamental role in the future for the luxury industry, as long as it invests heavily in physical stores. These are some of the conclusions presented by several recently published studies:

“By 2025, 100% of luxury purchases will be influenced by digital, in this context, the seller will no longer have the same role, the store will become an important point of contact between the customer and the brand, and the image of the brand will be a priority, where passion will be created around this universe and, especially, around its products. This is where you have to invest, seek and innovate,” said Claudia D’Arpizio, partner of Bain & Company and author of the study: “Luxury goods worldwide market 2018”.

In fact, points of sale are seeking to renew actively, as evidenced by the speakers during the colloquium about luxury organized on 15th November by Altagamma in Milan:

“Selfridges department store chain in the UK has just announced that it is moving from being a store to being an entertainment place, this is the current trend, we are also working very hard to develop our stores in this direction, we must be able to attract the public in the idea that they can visit us just to have a good time, without necessarily having to buy something,” said Vittorio Radice, Vice President of the Italian department store La Rinascente.

The same opinion is shared by Javier Fernández Andrino, Director of Marketing and Luxury Development at El Corte Inglés, who also participated in the debate: “It is essential that people spend time in our stores instead of staying at home browsing their phones. We have noticed the importance of making more attractive points of sale, which is why we have redirected our investments to events in the store instead of communication in the press.”

Once redesigned and reinvented, physical stores could even win new categories of customers among the younger generations. Because although they were thought to be exclusively dependent on their smartphones, millennials -young people between 18 and 34- represent for example in France, a third of the buyers of luxury goods without taxes that shop at French stores, and their percentage it has increased by 14% between 2016 and 2017 with an increase in spending of 17%, according to the latest Global Blue report on the European market of free taxes.

On the other hand generation Z, born in the digital era just after the millennials, aspires to rediscover physical stores. “In general there will be an increase of activity in the physical store, but it will have to show a new dimension to seduce these young people,” predicts Claudia D’Arpizio. As long as important resources will be invested in this sector.

A recent study made by Deutsche Bank on ‘The creation of value in the luxury goods industry’ comes to the same conclusion. The role of the physical store changes, as well as of all the figures that work in it. The objective is now to approach the consumer by offering “innovation, service, experience and entertainment”. In addition, “multi-brand virtual stores allow consumers to order 10 products and return nine or more within 30 days.” Ten years ago, this was unthinkable and it could even seemed ridiculous as a business model, plus a cost for the company, even if it is a hidden cost that can not be neglected,” said Francesca Di Pasquantonio, author of this study.

“Compared to the past, companies today are forced to increase the level and multiplicity of investments to remain relevant in the market”, and concluded by recalling that, in this context, the size factor of the company becomes “an important element of differentiation”, with largest structures being advantageous.

But the retail battle is far from over. Despite all the digital devices introduced in recent years in stores, which have gradually eliminated their barriers by opening more to consumers who offer increasingly personalized services, continue to record an inexorable decline of its visitors. “The increase in online sales and the decrease in tourists, which are decreasing everywhere except in Asia, explains this decrease in traffic, but it is not only that,” says Claudia D’Arpizio.

According to this report, the wholesale channel is still the main luxury goods sales network. Its market share fell slightly in 2018, from 63% the previous year to 62% today, but still records a 1% growth in sales. In particular, it was affected by the difficulties of the department stores and specialized points of sale that compete directly with the web pages. Mechanically, the retail channel experienced an increase in its market share from 37% to 38% during the period, with a turnover growth of 4%. Two thirds of this increase was achieved on a comparable basis, while the expansion of the network by taking control of retail distribution by brands in certain regions allowed an increase of 1%.

The number of luxury boutique openings in the world remained stable in 2018, with around 350 new points of sale. But, as the Bain & Company analyst says, it consisted mainly in reopenings, transfers to better locations, or openings in places that were not yet covered. It is no longer the same type of implementation as in the past. “Since 2012, we have gone from an average of 1000 annual openings to only 350, a 65% decrease in six years, which will continue in the coming years.” This is a time of great changes for retail, possibly one of the most fascinating issues in this moment of historical turmoil for the luxury industry, it is crucial for players in the industry to understand what stores are ready for today, and obviously, they are not just a place of transaction anymore”, concludes D’Arpizio.

Written by Dominique Muret

Translated in Spanish by Hernández Moya Sebastián

Copyright © 2018 FashionNetwork.com All rights reserved.

Translated in English by CoolhuntingLab.com

*Always respecting the content and names 100% and mentioning all its sources as they appear in the original.

Artículo original aquí publicado el 15/11/2018 en La Vanguardia.com y escrito por Clara De Nadal Trias, periodista digital, coolhunter de moda y viajes y fundadora de Coolhuntinglab.com

Much has been said and written about Bali. The island is in fashion and maybe that’s why, the last two years, we haven’t stopped seeing the same images of the same beaches in the same emblematic places again and again repeated by all the influencers, celebrites of the world including our friends in all social networks especially Instagram. Therefore, here you will find a travel proposal for those who have never been to Bali and for those who, after reading it will want to repeat.

In case you did not know, Bali is the name of both an island and an Indonesian province. The province includes the island of Bali, Nusa Penida, Nusa Lembongan and Nusa Ceningan. It is located in the western part of the small islands of Sonda, along with Java to the west and Lombok to the east. The island is now a popular tourist destination and is known, like Java, for its delicate arts that include dance, sculpture, painting, goldsmithing, leatherwork and a particular musical style, highlighting the Gamelan (Indonesian orchestra that plays court music and accompanies the theatrical performances and public parades, varying the number of instruments according to the uses).

But apart from being a tourist destination, Bali is increasingly a meeting point for fashion, jewelry, footwear, furniture and decoration wholesalers from all over the world who buy on the island to export it to their countries of origin and sell it more expensive. It is also known as “the island of the gods” for its great religious devotion, although many call it “the magic island”, because when you travel there you feel a special energy that makes the imagination fly and ideas flow without the need of psychotropics; reason why lately many young and not so young are leaving everything to live and fulfill their professional dream in, why not, the new island of opportunities.

But it has also became a paradise for couples who come to spend their honeymoon, brave adventure seekers, surfing, yoga and snorkeling lovers; and without a doubt Bali is an unmissable destination for anyone willing to disconnect for a few days while enjoying wonderful beaches, landscapes and discovering a new culture, history, people and their delicious cuisine.

The problem is that when you travel to the island of Bali there are too many options to plan your trip. In this case we will not cover them all, but we propose you a route that includes: Denpasar, Bukit, Jimbaran, Seminyak, Ubud, a brief mention of Kuta and Canggu; highlighting in each one, the special places that not everyone knows yet.

Denpasar

Is the capital city and the main center of the Indonesian province of Bali. Nearby are the Pura Blanjong Temple, the Bali Museum and the Pura Jagatnata Hindu Temple, with a white coral sanctuary. Puputan Square is in the center of the city and next to it there is the Taman Werdhi Budaya (also known as Denpasar Arts Center), which is an extensive complex that exhibits local art, cultural events and is also the venue for the Bali Arts Festival that is held every year with traditional music, dance and art.

The island of Bali has too many wonders to discover, so we will not stop much longer in Denpasar except to mention that this city is the first and the last thing you will see on your trip, since in this city is where the Bali-Denpasar Airport is located with more than 20 million passengers per year.

Bukit

known as “The viewpoint of Bali”, the peninsula of Bukit welcomes all kinds of people in search of that other Bali that does not appear in the travel catalogs. Today, the peninsula is accessed through a single road that connects Kuta and Jimbaran, and reaches Uluwatu through secondary roads. Once there, the most adventurous onces can move around by motorcycle, taxi, or for much less than you can imagine… in private driver. Although difficult access, the Bukit area has some of the best beaches in all of Bali, highlighting: Uluwatu the most famous- and the same one that appears in the well-known documentary made by Albert Falzon “Morning of the Earth”, who in 1973 shot for the posterity the moment in which its waves were crossed for the first time-, and nowadays it is the beach where consecrated surfers and surf lovers take advantage of the quality of their waves.

Do not forget the exquisite Balangan, Bingin, or Suluban beach –a total delight when the tide descends and it is also where the surf championships are held- and finally Padang Padang -located very close to the famous Uluwatu temple which is worth a visit.-

Accommodation: Experience the authentic Balinese experience in your own private bungalow in Gravity Hotel, and more of the same if you prefer to stay at Toraja Bambu Boutique Hotel but with the difference that your private bungalow here will be fully made of bamboo. Another option is the Suarga Padang Padang hotel for those looking for even a little more Asian luxury. Do not miss: to admire the last waves of the day at Single Fin; to have breakfast in Suka Espresso -if you are a fan of the healthy food-, or Drifters that in addition to healthy restaurant is also a store specialized in surfing. Try the delicious and authentic Indonesian food in Yeye’s, or in any of the small street stalls that you will see located on the sides of the road. Enjoy the sunset at least once and dine after at El Kabrón in its impressive Spanish restaurant specialized in paellas with an infinity pool facing the sea (essential to book a table in advance).

Jimbaran

fishing village and tourist area on the south coast of Kuta in Bali. Jimbaran Bay has an extensive beach with calm waters and fish restaurants surrounded by tropical forests. At the north end is the Kedonganan open-air fish market, where colorful boats dock. Do not miss: its beaches and a local fish and seafood BBQ’s in front of the sea where you can choose what you are going to eat and if you are lucky, to discover their famous secret sauce! Specially in this area do not forget to try the culinary experience of the one star Michelin restaurant Cuca that for over 50 euros will delight you with its tasting menu designed by the well-known and successful Canadian chef Kevin Cherkas.

Gen X are the last generation to grow up without the internet. They can socialise without Wi-Fi and are living life to the full, with babies in tow.

• Gen X is an underrated influencer when it comes to the economy, with a quarter sitting within the top 25% income bracket. They are huge spenders and 54% are frustrated that brands constantly ignore them – opportunity awaits.
• Gen X are socialising differently to other generations. Increased, dual disposable incomes demand a taste for luxury yet optimal fun and value for money is a prerequisite for social occasions.
• With busy schedules and family responsibilities, time is precious, prompting meticulously planned weekends where jam-packed socialising sessions that are shorter in length yet pack a social punch are favoured.
• Me-time is of utmost importance to Gen X, and if not available, seeing parents and the wider family is equally as fulfilling.
• Being and appearing cool is still important for Gen X and they’re seeking social events that realise this inner desire.

Big spenders

Gen X outspend all other generations when it comes to eating out and entertainment, according to the US Department of Labor. As busy professionals, they make a middle-class income, with an average of $50,400. By comparison, hyper-targeted Millennials make $34,430 on average. British Gen Xers make up nearly 28% of the UK’s total population and have the highest weekly expenditure (£894 vs. an average of £683).
With more disposable income at hand, and the added factor of dual income, they’re a powerful generation that are consuming at a rapid pace. Demographics expert Brad Edmondson writes: “60% of Gen X couples are in dual-income households. With more college education overall than any previous generation, many Gen Xers are financially successful and favour shopping at chains such as Austin, Texas-based Whole Foods Market and Rochester, New York-based Wegmans Food Markets.”
Gen X spend the most on wine ($5,717 per person) out of any generation. Wine Access’ 2018 report notes: “As their careers and incomes grow, it is Gen X who will be taking over from the Baby Boomer generation as the dominant fine-wine consuming demographic. In 2017, Gen X was the most likely to spend $70 on a bottle of wine more than once a month.”
It’s not just wine they’re spending big on, Gen X now makes up 23% of all restaurant visits, just 2% shy of Millennials at 25%. And according to a 2016 survey by TD Bank, while Gen X eat out on average of eight times per month, compared to Millennials at 13 times, Gen X spend an average of $123 versus Millennials’ $103.
Don’t overlook the purchasing power of the “small but mighty” generation. As Sean Mahoney, vice president and group director at Digitas Studios says, “They’re actually the people in power – power of the purse. They’re running households, they’re moving into political power, they’re in the centre of everything.”

Action points

• As social multitaskers with hectic schedules, it’s important to grab Gen X’s attention where and when you can – Inkling (a mobile enablement platform designed to help employees build confidence and work more efficiently, while providing operations leaders total visibility into field performance) found TV was their top media source, with 60% saying a brand should be present on this channel to increase their chance of purchase.
• Think of Gen X as a media-neutral generation – they grew up with old media (TV) and adapted seamlessly to new (social media), so they’re fluent in both.
• Understanding that Gen X are time-poor is important. Brands that crop up at inappropriate times, especially during family time, may get dismissed. An intelligent approach that catches this cohort at the right time is essential. There are less windows of opportunity so content needs to be appropriately eye-catching and hyper relevant.
• Brands that truly resonate with Gen X will have their hearts forever. This generation are most likely to be loyal, with three in five agreeing that once they find a brand they like, they’ll stick with it.

Source: WGSN