Introduction
Omnichannel again seems to be a focus of attention in the world of ecommerce and is seen to be shaping the future of retail. Both ecommerce and in-store experiences have evolved, with tools and strategies designed to create a seamless transition between online and offline interactions. Having a successful omnichannel strategy appears to be more important for some retail sectors above other. As we work with many clients in the premium homeware space, we’ve seen first-hand the impact of a robust and well-thought through omnichannel strategy.
During the COVID-19 pandemic, many took the opportunity to invest in their home décor. Now, as consumers weigh their spending decisions more carefully, premium homeware brands are increasingly embracing omnichannel strategies. These strategies leverage data, storytelling, and enhanced communication to connect with both new and existing audiences, encouraging them to invest in their homes.
What is omnichannel retailing?
Omnichannel refers to adopting a unified customer experience across all channels—online and offline. The goal of an omnichannel strategy is to ensure a consistent and cohesive experience at every customer touchpoint while also collecting and analysing data effectively. This means:
Consistent messaging across all marketing channels.
Customer-centric marketing that reflects the interactions of the audience with any channel.
Personalisation across all channels at every stage of the buyer journey.
Utilising data, analytics, and automation to enhance knowledge and usage.
Omnichannel customers shop 1.7 times more than those who use a single channel, and they tend to spend more (Mckinsey, 2022). This growing importance is evident in the industry, with brands like House of Hackney even appointing a dedicated Director of Omnichannel to oversee these efforts.
The evolution of consumer expectations
Today’s customers are more digitally savvy than ever before, with more research possible prior to purchase thanks to a wealth of information available online. Social media now plays a pivotal role in the shopping process, with influencers such as Sophie Paterson sparking inspiration and a growing interest in improving interior design.
Consumers increasingly value ethical and sustainable products, and brands like Graham and Green Nkuku are leading the way by integrating sustainability into their business models.
House of Hackney (HoH) have even added "Mother Nature" and "Future Generations" to its board of directors, illustrating an authentic commitment to systems change, in addition to what is now a minimum of ‘B-Corp’ accreditation.
Key omnichannel strategies adopted by luxury homeware brands
Providing a unified experience can be straightforward. Features like ‘Click and Collect’ are now must-haves, as they bridge the gap between online and offline shopping, driving foot traffic to physical stores. Other examples include incorporating digital versions of traditionally offline marketing materials, like Cox and Cox’s online catalog, brings traditional strategies into the omnichannel sphere.
Instore, offering digital receipts via a digital POS system, can further streamline the customer experience and provide valuable data for a single customer view.
Understanding what data is useful is a key part of the Omnichannel process. It can be as simple as asking for a birthdate, to allow a special offer to be sent on the day. Data can be captured via form sign up to allow brands to segment their customers to offer exclusive access to VIP events or presales.
Utilising tools such as Klaviyo, can help effectively segment a customer database, creating personalised flows on email and SMS to ensure each individual shopper is offered the personal touch.
Omnichannel customer service
Customer service is critical in the luxury market. Tools like WhatsApp Business and live chat allow for more personalised interactions, enabling staff to reference previous conversations and build stronger relationships with customers.
This human connection remains essential, as Richard Voyce, Director of Technology at The Conran Shop says:
“…ultimately [customers are] still wanting to connect to a real human… The expertise we have in store provides comfort and reassurance”
Generative AI chatbots are also becoming more sophisticated, offering the possibility of virtual shop assistants that replicate some aspects of the in-store experience online. Companies such as Mercari provide personal shopper bots, while Kering have dabbled with their own AI personal shopper, ‘Madeline’.
The store at home
Next-generation technology like Augmented Reality (AR) is revolutionising the shopping experience. AR allows customers to visualize how products will look in their homes before making a purchase, increasing confidence, and reducing returns.
theconranshop.com, 2014
The Conran Shop, among others, has implemented AR to make its products more accessible, even to those without a nearby store.
In-store QR codes further enhance the omnichannel experience by linking physical products to online content, offering enhanced marketing opportunities via browsers or native apps.In-store QR codes further enhance the omnichannel experience by linking physical products to online content, offering enhanced marketing opportunities via browsers or native apps.
Connecting with New Markets
An omnichannel approach not only strengthens connections with core consumers but also helps brands tap into new markets. For example, using the website to showcase physical stores can attract global customers. Andrew Martin, a designer furniture retailer, offers a virtual tour of its flagship showroom, allowing distant customers to experience the brand and discover items not available online.
The demand for luxury homeware is growing in emerging markets, such as the Middle East. The Conran Shop recently launched its first brick-and-mortar store in Kuwait, supported by a region-specific website that caters to local customers while leveraging the brand's global reputation.
Challenges and Considerations
Maintaining an aura of luxury and exclusivity, while implementing an Omnichannel strategy, can be tough. Ensuring the online presence feels luxury, while offering a consistent customer experience across all channels, is a delicate balancing act.
Moving to a tech stack that allows accurate data capture and usage, that integrates seamlessly and effectively manage stock is not for the faint-hearted! Thankfully, it is becoming easier with each passing month – in fact, The Conran Shop worked with Unified to do exactly that.
As younger shoppers (ages 16-34) focus more on homeware, brands must adapt to appeal to this demographic, especially as competition from fashion retailers like Zara and Pretty Little Thing increases. Google have found that younger mobile shoppers show a preference for hybrid off/online shopping experiences, so the opportunity is ripe.
Conclusion
The adoption of omnichannel strategies is becoming increasingly essential for luxury homeware brands. By seamlessly integrating online and offline experiences, these brands can meet the heightened expectations of modern consumers who value convenience, personalisation, and ethical considerations.
Balancing the exclusivity of luxury with the accessibility provided by omnichannel requires careful strategy and execution. As the market evolves, especially with the influence of younger, tech-savvy consumers and competition from non-traditional luxury brands, staying ahead necessitates continuous innovation and adaptability.
Omnichannel retailing presents a significant opportunity for luxury homeware brands not only to deepen their relationships with existing customers but also to expand into new markets, ensuring long-term growth and relevance in a competitive global market.
