Logistics hubs and social media shopping: the future of customer experience

The recent global pandemic has only accelerated a trend that was already well underway: the integration of physical stores with e-commerce websites.

The fashion industry has reached a historic turning point: stores are becoming increasingly digital, technological and web-based.

From sales outlets to nerve centers

In an article published on April 28 – back when a post-lockdown world wasn’t yet a reality – David Pambianco discusses the future of single-brand stores, outlining an entirely original yet plausible shopping solution that could be implemented by all stores.

Pambianco believes that “stores will soon turn into logistics hubs, or peer-to-peer virtual warehouses used to ship online purchases, and to optimize stock logistics and levels. Physical stores will ultimately become a hybrid between showrooms and online shopping distribution hubs, without neglecting their function as places to make purchases, although this particular feature will end up being significantly reduced.”

The fashion and luxury sector moves online

Research conducted by McKinsey a little over a month later, on +1,000 luxury shoppers from the United States and EMEA, further confirmed this trend. Presented in a webinar held in early June and entitled, “A perspective for the luxury goods industry during and after coronavirus,” the report highlights the growing centrality of online experiences in purchasing decisions.

While 80% of consumers said they would cautiously return to physical stores after lockdown, 24% said they had shopped online for the first time and were largely satisfied with the experience. What’s more, Mark Zuckerberg’s push at the end of May to update Shops – a Facebook feature that allows purchases to be made on the social network – further demonstrates this new and unstoppable trend.

The crucial role of user experience

As we entered a period known as the “New Normal,” the Luxury Society published an article outlining a desirable recovery route for luxury brands in a post-COVID world. The solution proposed by the magazine is a fairly obvious one but is are worth repeating: leverage e-commerce and make increasing use of an omni-channel strategy while also optimizing user experience, customer relationships and partnerships.

As such, luxury services are moving from brick-and-mortar to the web, all while providing their customers with exciting new features, from augmented reality to digital support for offline initiatives, and from online browsing to exclusive post-purchase experiences. Bizeta is here to assist fashion brands hoping to implement a winning strategy, engage with this new digital world, and bring real value to their customers.