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Hong Kong Echo: Five Reflections with Laurence Ouaknine, Founder of AuCoeurDuLuxe (ACDL)
Luxury retail is facing a revamp. Laurence Ouaknine, Founder of AuCoeurDuLuxe (ACDL), says new attitudes mean a new era of staff training, in-store experience, and frontline finesse.
On luxury retail post-COVID…
This period has been a catalyst for many pre-existing trends, accelerating the digital transformation of the industry as well as the social consciousness of clients. People are more conscious than ever about the origin of products and the importance of preserving our planet. Consumers are reluctant to go back to mass consumption, looking for more sense in their purchases and more experience while shopping.
Some retailers excelled. They learnt how to sell at distance, using every tool at their disposal from livestreaming on Facebook to e-commerce. Historically, Hong Kong offers several shopping areas multiplying the ‘place to be’ for brands. During the pandemic, they optimised their footprint and kept only the profitable stores. I am confident in the city’s luxury retail rebound, but I doubt we will see that many stores returning to Central and Causeway Bay in the near future.
On the role of frontline staff despite e-commerce…
Frontline staff are instrumental to a successful e-commerce operation. Several brands have launched staff-driven livestreaming sales initiatives with great success. But to conquer this US$169 trillion global market in 2021, they need to empower staff with the digital tools and knowledge to turn them into true influencers.
E-commerce initiatives were too often seen in silos. In 2021, omnichannel means ‘New Retail’ and starts by collecting client data and using the digital tools to register and enhance the client’s profile. The more information you learn about your clients, the more personalised your interactions with them will be in the future. The tools exist to help achieve it but, in the end, the client will only remember the staff. They are the face – they drive New Retail.
On training trends…
Staff interaction with clients has changed. Most brands have adapted to this through e-learning to support staff training. We have seen the blended learning ratio move from 80% face-to-face training to 80% digital. During COVID, we have seen a desire to build sales staff capabilities to increase basket size and conversion rate. Games are used to evaluate skills and learners receive course recommendations tailored to them through push notifications. They can ‘like’ content and share scores with their peers. We analyse data such as engagement level, success rate, and we integrate neuroscience to insure the solution sticks. In the millennial era, bite-size content, gamification, and social learning are key.
On brick-and-mortar…
Historically, luxury retail has relied on the senses – taste, touch, smell, as well as actual human engagement – to promote itself in store. Digital can complement this but not alienate the role of boutique staff. A memorable experience engages each customer in an inherently personal way and thereby creates a positive memory and a willingness to come back and to buy more. 20 years ago, luxury groups were rejecting e-commerce. In 2021, they are embracing New Retail: an ecosystem that works together in store and online.
On exciting developments…
We have offices in several countries, and it has been amazing to notice the difference with Chinese market. While we were all concerned about ‘what’s now’ globally, the luxury sector in China was focusing on ‘what’s next’, using drones to create QR codes in the sky, and boosting New Retail to the next stage. Empowered by CRM tools, customer centricity enables the industry to get closer to Generation Y/Z and prevent itself from disappearing.
