Luxury Goods

How We Help Luxury Goods Clients

As the light begins to appear at the end of the pandemic tunnel, companies still face an uncertain macroeconomic environment. That's why luxury brands need to continue to rethink what, when, and how they sell, recalibrating operations to meet a changed sales picture. The tradeoffs are not easy: luxury companies must emphasize efficiency and adapt to new sourcing and distribution constraints while making rapid investments in digital capabilities.

Our two-pronged approach—reset and invest—addresses both sides of this new reality.

We Help You Reset

• Distribution. We clarify where to divide effort among owned stores, wholesale, multibrand sites, and omnichannel experiences, and focus on strategically building out the digital ecosystem. Due to travel restrictions, stores may need to reorient marketing and in-store experiences around local luxury customers.
• Sustainability and the Supply Chain. To respond faster to shifting sourcing conditions, BCG helps you build closer partnerships, develop risk-sharing arrangements, and decrease time to market. We also work with brands to develop baseline metrics on sustainability performance along the supply chain to pinpoint improvement potential and create a roadmap for change.
• Operations. Using a zero-based redesign, we work with you on an operating-model transformation that right sizes non-headcount areas, reinvesting the savings in marketing and data and analytics, which help speed forecasts and commercial decision making while still delivering 10% to 30% cost reduction.

So You Can Invest

• Brand Purpose. We help you set the new industry standard for brand purpose, exploring the values that define your brand. We also develop strategies for communicating clearly around sustainability and responsibility goals and where you truly are on the path to reaching them.
• Community and Inspiration. With luxury consumers spending more time in the inspiration phase of the journey, brands need to raise their game on social channels and community marketing, showing a deeper awareness of social, civic, and environmental causes and creating a meaningful dialogue with cultural pioneers.
• Clienteling 2.0. We put tools and analytics into the hands of your associates to engage customers more meaningfully, offering digital styling, seamless purchases, and post-purchase relationship management—changes that have proven to lift net sales by 10% to 15%.
• Digital Ecosystem. We help you remap your luxury customer journey—from inspiration to post-purchase—across all digital players, ensuring that online experiences go far beyond the transactional to include private showings, personal shoppers, and white-glove delivery.
• Digitizing Core Processes. Working with  BCG X, we develop use cases for building an AI-driven technology backbone and help pinpoint investments that will accelerate processes related to product development, e-commerce, marketing, HR, and more.