In Conversation with Luisaviaroma: The Next Chapter of Luxury Event Recap

Luisaviaroma, the iconic Italian multi-brand luxury retailer, is taking bold steps forward in its expansion journey. With the retailer's global market growth reaching 35% in 2021, Luisaviaroma's recent flagship store in New York is a move to engage more deeply with American clientele, particularly discerning New York customers who are true sartrorialists. This move builds on earlier plans for expanding to the U.S. following Luisaviaroma's 2018 pop-up, and aims to enhance its presence in a crucial market that promises even more growth opportunities.

Since launching its online platform in 1999, Luisaviaroma has solidified its digital leadership. Currently, 95% of its business is conducted online. However, the brand recognizes that merely being online is not enough. Today, the emphasis is on crafting personalized experiences for VICs to revive the essence of traditional luxury service.

On April 16, Luisaviaroma's Deputy CEO Bradley Carbone and COO Barbara Torasso joined Fordham BiFL and moderators Nina Show and Jennifer O'Neil for a conversation and site visit. This event provided valuable insights into how Luisaviaroma is evolving within the dynamic landscape of luxury and what the next chapter of luxury retail might entail.

Event Highlights

Visiting Luisaviaroma’s flagship store in New York is more than just shopping; it is an experience. The store features a thoughtfully curated space that includes designer pieces arranged in edited looks for an elegant shopping environment. A notable highlight is a dedicated section for vintage finds, made possible through a collaboration with Vestiaire Collective. This reinforces Luisaviaroma's commitment to blending modern fashion with timeless pieces, creating a unique proposition in the luxury market.

Additionally, the flagship has a private suite designed for personalized styling consultations. This suite reflects the brand's focus on customer experience and offers a space for VICs to receive tailored advice. The interiors, crafted by renowned Italian artists, emphasize not just aesthetics but also craftsmanship and artistic expression.

Key Insights

CRM and Customer Loyalty Are Essential

During the discussion, the importance of Customer Relationship Management (CRM) stood out prominently. Establishing strong relationships with customers is critical at every stage of their journey. For example, engaging customers after a purchase through follow-up emails or personalized messages can significantly enhance satisfaction and foster loyalty.

Service must remain top of mind, and personalized interactions that make customers feel valued is essential in enhancing the buyer's journey. Simple gestures acknowledging the post-purchase experience can significantly elevate overall customer satification.

Differentiating Through In-Store Experience

While 95% of Luisaviaroma's sales occur online, the flagship store serves as a vital channel for expressing the brand's identity. The physical space allows customers to experience the quality of products firsthand. This direct contact empowers customers to engage more deeply with the product offering, allowing for a more private and more personalized service.

For instance, inside the store, customers can explore curated collections, receive one-on-one styling advice, and immerse themselves in a sensory-rich environment. This personalized experience complements the convenience of online shopping by adding a personal touch.

Modern Omnichannel Strategy

Luisaviaroma's commitment to a seamless online and in-store experience is evident in its omnichannel strategy. While the website remains the primary driver of sales, the physical store enhances satisfaction and loyalty for customers. The website drives traffic to the store, and the store drives loyalty back to the digital platform. This hybrid model gives customers the flexibility to shop in the way that suits them best, whether online or at the flagship location.

By leveraging data from both channels, Luisaviaroma can execute targeted marketing efforts that resonate with specific customer segments. An effective omnichannel strategy achieves better customer retention.

The future of retail revolves around finding the right balance between digital capabilities and personal connections. While increased digital touchpoints in-store could enhance the experience in the future, the brand emphasized that technology must never replace the essential human connection

Closing Thoughts

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The In Conversation with Luisaviaroma event was not just a deep dive into current luxury trends; it showcased a vision for the future centered on personalization, craftsmanship, and sustainability.The insights offered by Bradley Carbone and Barbara Torasso underline the necessity of cultivating customer loyalty, enriching in-store experiences, and adopting a modern omnichannel approach.

This new chapter for Luisaviaroma transcends mere expansion; it is about redefining luxury by integrating traditional values with contemporary expectations. For business students observing this transformation, there are crucial lessons to be learned about balancing innovation with heritage in the pursuit of excellence in the luxury arena.

Students interested in working in the fashion and luxury space were advised to seek opportunities that help develop deep product knowledge, cultivate strong customer service skills, and prioritize relationship-building within the industry.

We extend our sincere gratitude to Bradley and Barbara for sharing their valuable insights and welcoming us into the Luisaviaroma flagship store.

Nina Show

Fordham BiFL President