Digital ecommerce: The power behind the luxury retail brands
Nice little article from the New Yorker on the digital market for luxury retail (think Prada, Gucci).
Couple of interesting titbits that caught my eye:
- The powerhouse behind many of the leading brands is a company called Yoox group, based in Italy. This company powers ~30 brands such as Armani, Dolce & Gabbana etc.
- Customers who buy online as well as in the store, tend to buy four times as much as those that buy at the store alone. Wow. Should give retailers an idea where to focus their efforts.
- Apparently, it’s not just the pope that has a fetish for red shoes; nuns too prefer fancy shoes, and not flats. Hmm.
- Yoox’s just throws all their merchandize (without first sorting) into boxes; this seems to speed up the search for the item (as opposed to say looking through a set of seemingly identical black T-shirts for example)
Could this be the model of others trying to compete with Amazon? Someone with inside knowledge/connections that focuses on the “non-sexy” part of ecommerce operations, while others focus on everything else?
BTW, the founder, Marchetti, is an ex-Bain consultant. Apparently, he “hated” working for them.