Author Archives: Gekko Marketing

Aug 13 2021
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Staying afloat in the storm of the century

The past year has seen many firms suffer – but small enterprises have proved surprisingly resilient. Daniel Todaro talks to Business Reporter about how Gekko has innovated to sidestep the pandemic potholes.

Small and medium-sized businesses have suffered grievously during the Covid pandemic. Lacking the depth of pocket, breadth of interests and extent of continuity planning of larger companies, many have had a torrid time, with owners often spending their own savings or taking second jobs just to keep the business afloat.

But smaller firms do have one invaluable advantage over larger rivals: agility. While the corporate CEO is straining at the helm of the oil tanker, the SME skipper can reset every sail and disappear over the horizon.

Even in the hardest-hit sectors, SMEs have found new routes to market, often online. Pre-Covid, field and retail marketing agency Gekko majored on training shop-floor staff, so lockdown was a hammer blow. CEO Daniel Todaro’s response was to go virtual.

“We moved at pace to pivot and develop new digital services, in­cluding a digital learning management system for retail sales teams. We’d been strategising this for a while, but the pandemic forced us to rapidly speed up de­velopment. The upshot is we’ve been able to train many more staff, and created a valued new service [to] complement our in-store ac­tivity. So in meeting the needs of the evolved channel, we’ve helped diversify our business offering.”

For the full article please visit Business Reporter (page 14)

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Aug 03 2021
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Is a ‘Shop Out to Help Out’ scheme enough to boost UK retail?

With the vast majority of Covid-19 restrictions lifted, there have been calls for a ‘Shop Out to Help Out’ scheme – in the same vein as last year’s Eat Out to Help Out – to help the embattled retail sector. Retail Gazette speaks to experts to find out it would be enough to help high streets recover.

At the beginning of the month, a petition to introduce a ‘Shop Out to Help Out’ scheme was launched in a bid to help struggling independent high street retailers.

The idea, instigated by membership programme Refundable and in the same vein as the Eat Out to Help Out last summer, calls for customers to be rewarded a 50 per cent 50 per cent rebate when shopping in small or independent retailers that employer fewer than 10 staff.

With over thousands of shops having closed permanently within the last year, the scheme could potentially act as a lifeline to retailers, providing them with a safety net as they emerge from restrictions.

Refundable is currently encouraging both consumers and retailers to sign the petition, with the goal of reaching 100,000 signatures.

While it is clear that smaller retailers need more support during the transition back to normality in the wake of “freedom day” earlier this week, there are still doubts that a scheme of this nature would not be enough to revive high streets.

Polly Barnfield, chief executive of Maybe, a member of the government’s High Street Taskforce, said that “at the moment, all help should be welcomed and embraced including schemes like Shop Out To Help Out”.

However, she stated that while the scheme could provide the short term financial boost that many retailers and high streets need, “there’s more that needs to be done than just that”.

“To sustain longer term recovery and growth, collaboration between retailers is essential to turn our high streets into destinations with a mix of retail and hospitality that shoppers want to go to for the mix,” she explained.

“It’s about enthusing and engaging consumers across social platforms to drive them towards local physical stores rather than ecommerce stores, creating ‘localism on steroids’ so that shoppers are convinced that your local High Street can provide.”

Dr Eleonora Pantano, retail marketing expert at the University of Bristol, agreed: “The demise of physical stores and the high street started long before the pandemic, which has accelerated the decline.

“To really boost retail sectors, retailers need more substantial financial support to help them adapt from being just a place to shop to offering a memorable experience, which gives them a competitive advantage against online options and the chance of winning customer loyalty.

“When the Shop Out to Help Out money runs out, shoppers won’t return unless there is something special to keep them coming back.”

Last year’s Eat Out To Help Out scheme was hailed a success by the hospitality sector with the majority of businesses reporting that it led to a boost in sales. At the same time, it was met with criticism amid accusations that it helped spur on the second wave of the Covid-19 pandemic in the UK, during a time when the vaccine was not yet widely available.

Despite this, according to Big Hospitality, over 70 per cent of businesses said they’d like to see the scheme repeated again in the future as more than 100 million meals were claimed by diners under the scheme. In addition, booking for the final day, August 31, was up 216 per cent year-on-year.

While this scheme was successful, could this be replicated with one for retailers?

Helen Ashton, chief executive at Shape Beyond, said Eat Out to Help Out was a success as “discounts on food in restaurants are relatively rare and the timing post the first lockdown was great when people were desperate to get out”.

“Discounting of consumer goods is likely to be less impactful as it is a regular occurrence in the retailing seasonal calendar,” she added.

Earlier this week, England ushered in the so-called “freedom day”, which marked the official lifting of Covid restrictions. So would this be the perfect time to launch a Shop Out to Help Out discount scheme?

Rupert Cook, marketing director at marketing agency Gekko, said that the summer holidays were traditionally a relatively quiet period for many retailers, so it may be more effective to give the high street a boost once the autumn term starts as people would be back from their breaks or back to work as the furlough scheme is tapered off.

He added that for those that like to start their Christmas shopping early, Shop Out to Help Out could provide an added incentive.

“What’s probably more pressing for businesses right now is the Covid self isolation rules that are no longer fit for purpose,” he explained.

“The more people are being pinged and told to stay away from work, the harder it is for businesses including retail, to operate.

“Only this week, the managing director of Iceland stated that he is having to close some stores and have restricted opening at others because of staff shortage – something they never had to contend with through the depths of lockdown.

“We should also bear in mind, that with Covid cases rising daily, there is a real possibility that we may be blighted with further lockdowns.”

Retail Business mentor Ami Rabheru agreed.

“The biggest threat I see facing retail businesses going into the golden quarter is the ‘pingdemic’,” she said.

“If staff of small businesses are being asked to isolate by NHS they have to shut down their bricks and mortar shops or reduce hours for that period of time due to staff shortages which will inevitably hurt their recovery for what is the biggest time of the year for most retail businesses.

“So I think that businesses should spend time and effort on building a better customer journey and experiences between the two channels whilst keeping the customer at the heart of their businesses to move forward with the new normal of retail.”

While there have been concerns that a Shop Out to Help Out initiative could cause a surge in positive Covid cases, Cook argued that we are now in a world where a high proportion of the population has been vaccinated.

He stated that unlike the Eat out To Help Out scheme, a retail version wouldn’t be encouraging people to gather together indoors.

“Shopping is a sociable activity but realistically is a more solitary or selective social activity,” he said.

When originally proposed, the Shop Out to Help Out was meant to target smaller and independent retailer rather than the larger chains. Refundable owner Lee Plaister said in a statement that “independent retailers have had a very challenging year and it’s crucial that the government steps up to assist the recovery”.

However, there are concerns that if implemented, Brits would flock to high street staples instead of local, independent stores.

Colin Munro, managing director of fintech firm Miconex, said: “Both small local shops and larger chains have their place on the high street, and the best initiatives are those that encourage all businesses to work together for the benefit of the community, building vibrant, attractive high streets for the future.”

“A customer may visit the high street for the large chain, but they may then also visit the independent book store and coffee shop.

“Customers want choice in how and where they spend, and any Shop Out To Help Out initiative will be more successful if it takes account of this.”

Article published by Retail Gazette

Photo by Liza Summer from Pexels

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Jul 09 2021
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FIVE TIPS FOR BOOSTING YOUR MENTAL AND PHYSICAL HEALTH DURING HYBRID WORKING

As we move toward a full re-opening of the economy there remains some uncertainty about how often we will return to offices. A leaked Whitehall document recommended the Government should not actively tell people to go back to the workplace after 19 July. While different messages have come from Ministers, it seems likely that an element of home working is to continue. Most companies seem set to operate at least a part hybrid model, between home working and coming into the office. A recent survey from Gemsatwork found that more than three-quarters (77%) of workplaces that fully closed during the most recent UK lockdown have reopened, with 47% of staff back to the office on a day-to-day basis.

Responsible employers will want to tread cautiously in how they approach the return to offices during what remains a difficult time for many people. It is important to be mindful about employees’ mental health, with many peoples’ emotional states fragile to say the least. Employees will need to adapt to make sure they take the right steps to ensure they can manage the very different challenges of hybrid working compared to solely working from home.

At Gekko we have worked with both physical and mental health experts to ensure our staff have been supported as best we can. So with the support of our practitioners, Bianca Sainty & Bep Dhaliwal, I’d like to share our best tips for looking after yourself as we mix between the real office and the home office.

1)   Embrace the outdoors every day to lift your mood

There is a great volume of research showing that spending time outdoors gives an immediate and lasting boost to mental wellbeing. A KCL Urban Mind Study in 2018 found that “Seeing trees, hearing birdsong and seeing the sky has significant immediate associations with mental wellbeing”. Meanwhile another study by the University of Michigan in 2019 revealed that taking at least twenty minutes out of your day to stroll or sit in a place that makes you feel in contact with nature will significantly lower your stress hormone levels.

To achieve this, actually diarising your walk can have a positive impact. This applies equally to being in the office and working from home. According to fitness coach Bianca Sainty a fitness and wellbeing coach and founder of Pod Fitness: ‘When you are WFH, start your day with a ‘fake’ commute. Plan a 30 minute route that starts and finishes at home and walk this every day. As you walk, you create the mental space you need to shift focus from home life to work. This will help to maintain a vital boundary between your home and work lives.’

2)   Keep a consistent sleep routine to maintain productivity

As we ease back into a hybrid situation, the changes in rhythm to our day can actually play havoc with our sleep. Setting alarms at different times is likely to confuse our bodies and impact the regularity we need to remain on top of our productivity game. According to Bianca: ‘Better to stick to the one, earlier wake-up time, every day, regardless of whether you are commuting. For optimal wellbeing, adults need between seven and nine hours sleep every night. Work out your ‘lights out’ time by using this formula: Lights Out time = Wake Up time MINUS 7 to 9 hours (insert the amount you need).’ She adds: ‘By adopting this consistent routine, you will ensure you don’t fall into sleep deficit. Plus, on the days when you work from home, you gain extra time for self-care. Win-win!’

3)  Nurture strong relationships to help make you stress-resistant

As we return to the office a real bonus is the chance to interact with colleagues and friends (those that we get on with anyway!) It may seem overwhelming at first but we are fundamentally social beings and this period of isolation has been unnatural for all of us. According to Bep Dhaliwal, Founder of Thrive365, a Resilience coach that has worked closely with the Gekko team: ‘Cultivating strong relationships will make you more resistant to stress and have a strong support network. Connection is a fundamental human need.’

For those continuing to work from home – remember your other colleagues will likely feel the same about the feelings of isolation, so that should help feeling less alone when you are working from home. Zoom or Teams meetings don’t seem to be going anywhere in a hurry – so perhaps we need a new approach to how we handle them. One strategy is to not view the screen as a block to normal social interaction. According to Bep: “We can still make time to connect before/after a video call, where you talk about things unrelated to work.”

4)   Remain curious and flexible to help you ‘lean into’ change

The Buddhist philosophy of accepting that things change has really been put to the test during this extraordinary period. Our lives have been dramatically altered and there is an increasing realisation there won’t just be a swift return to the pre-pandemic era. We all need to accept change and ‘lean into’ it. For a rapidly changing job market and new hybrid work environment a flexible, progressive approach is the best way to remain employable and also help you cope.

According to Bep: ‘Know that things change. The more you are open to this, the quicker you learn, adapt and grow from setbacks. Just because things have been done in a certain way beforehand, it doesn’t mean there isn’t a better way for them to be done now. Present the challenge to the team and invite a creative new alternative…..enjoy being curious.’

5)   Have an optimistic outlook and focus on your goals

During this time, the choppy waters of the pandemic have knocked many of us off the course in life we may have set. This might be career, health related or even your relationships. What is crucial is that we keep sight of our life goals and objectives to give us a focus for this next period. Setting goals is a crucial element in recovering from mental health challenges and this period has arguably given everyone a form of PTSD. Having a positive attitude to getting back on track can certainly help. Bep says: ‘Acknowledge what’s in your control versus what you can’t control and look for the good.  We’re used to looking for the challenges in most situations, use a bit of neuroplasticity to carve a new path.’

Old certainties about life and the future certainly don’t hold water today. A hybrid way of working looks set to dominate in the future. Perhaps it has given us all a chance to think about the best way to work ‘your way’. But also remember to not be too hard on yourself while adapting to changes you can’t control. Make the best of the situation to embed some positive new habits. Having a plan to cope is essential as we adapt to hybrid working and the return to the office which is inevitable for all.

This article was originally published with Business Express

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Jul 02 2021
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Using The Power Of Insight To Enhance Your CX Proposition As Shoppers Return To Stores

As the country emerges from the worst of the pandemic, it is apparent that we are entering into a new world of retail across all channels. This landscape remains one that keeps changing, and understanding the customer experience at all stages is crucial to success, utilising data and insights effectively can ensure you stay ahead of the game.

For physical retail particularly, in differentiating itself from the rising e-commerce category, the concept of experience is now more at the forefront than ever before as consumers expect bricks and mortar stores to be an experiential destination as well as a point of purchase. First-hand insights from the best available source, the customer themselves, will help ensure those experiences with your business are both relevant and effective.

CX is key to brand loyalty

Loyalty to a brand is no longer dictated purely by price or product, it is now more to do with the overall experience a shopper receives, whether that be in-store or online. How businesses handle their customers is second only to product quality in terms of priority for consumers. Whereas an average conversion rate can sit as low as 1-3% for first time buyers, for a repeat customer it can reach as high as 60-70%, meaning that making that first experience positive is crucial. As a result of this, according to SuperOffice 46% of global business professionals surveyed said that elevating CX was the number one priority for their business over the next 5 years, as all channels realise its growing importance.

Clearly this is a trend that has already gathered pace, and in order to make sure they are at the forefront, brands are increasingly looking into data and insight to help shape their strategies. Being able to make decisions in real time based on changing events has never been more important, and those that find the right balance will build better consumer acquisition and loyalty through positive shopping experiences. 86% of consumers are actually willing to pay more if they receive quality service, and the more expensive the item, the more they are willing to pay.

Insight informing the customer experience

Although knowing just who your customers are isn’t quite enough any more, you need to try to understand exactly what they are looking for in a store visit, what shapes their purchasing journey, and importantly why they might like you in particular. Surveys work well, while face to face interaction with real life representatives can also provide key information right from the customer themselves. This engagement can be benchmarked to provide brands with valuable knowledge with which to react or strategise for. Such first party data (i.e. directly from the consumer) can be both transactional and/or behavioural, and is the most prized form available providing powerful insights that can be used to improve the customer journey.

One in three people will walk away from a brand after just one bad CX. Good insights can fix, or better yet pre-empt, these issues and cut a potential poor experience before it develops. A quick stock fix, product description change, or promotion update can be the difference between sales made and sales lost. In the positive scenario, it is a win-win for all parties, leaving both consumer and brand satisfied. Financially, the rewards for succeeding here are more than worth it, data from Qualtrics shows us that increasing customer retention rates by 5% increases profits by 25%-95%.

Physical retail is back – time to take advantage

Even with the rise of e-commerce over the course of the past year, physical retail is now back and as important as ever. It remains popular because shoppers can physically touch products they are interested in, items can be taken home immediately, and they can get tailored advice from experts. Their journey in store is defined by having an informative CX and a seamless transaction. Effective field marketing can hit both of these parameters head on, while at the same time gathering the direct insights needed to keep driving the consumer journey forward.

As retail continues to open up once more and the industry breathes again, both brands and marketers need data to enrich the CX, which as we know will then garner loyalty and recommendations. The most productive campaigns will be from those who can gather the most relevant first hand information, and are able to then use those insights to keep their customers happy with their experiences. It is this satisfaction that will in turn help your brand succeed.

Tom Harwood – Data & Insight Manager Gekko Group

To read the full article please visit Business Mondays

The photo that accompanies this article is by Burst from Pexels

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May 04 2021
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Future Proof: What’s next for retail?

Future Proof Podcast: the marketing podcast from Kantar and Saïd Business School, Oxford University

In this episode, Daniel Todaro, founder and managing director of Gekko Group, the retail marketing agency specialising in consumer electronics speaks to Jane Ostler from Kantar.

Dan talks about how brands and retailers can improve the experience for customers in an evolving marketplace, noting that while omnichannel and online shopping has increased in importance, shoppers are still very keen to touch, try and experience a product – so high street retailers have plenty to think about when it comes to satisfying pent-up demand. He also discusses the increased use of electronics at home, how Gekko has delivered training during the pandemic, and the way sustainability and localism will affect retail strategies.

Please click here to listen to the podcast

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Dec 11 2020
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Four strategies for mobile brands looking to build market share in 2021

Revised forecasts from IDC predict smartphone sales will have declined by 12% overall in 2020. Against this backdrop, the traditional approach to growing market share for mobile brands is as dated as music festivals, theatre trips or weddings. Instead, brands have needed to adapt innovative new strategies to weather the turbulence, respond to changing consumer needs and come out stronger. A 2019 playbook simply won’t cut it in a continuing world of social distancing and faded touchpoints. Here are four strategies for mobile brands looking to expand market share in 2021.

Focus on establishing credibility

It goes without saying, but it has been a very tough year for challenger brands, with consumers gravitating towards brands they already know. Market leader Apple has expanded market share in the UK from 49% in October 2019 to 53% in October 2020. In this new environment, it has been very difficult for new entrants to promote themselves and establish themselves in consumers’ lives, especially with the reduction in opportunities to physically see and touch a new product. Consumers will want to invest their hard-earned cash and goodwill into credible brands that they know and are likely to stay. Key to this is a brand that has a great portfolio, strong supporting ecosystem, great customer service and the marketing vision and ability to build a credible trustworthy brand. For those wanting to make inroads, they will need a best in class distribution strategy and the ability to really differentiate and personify a brand.

Build in-store knowledge and advocacy

A vital component for any brand intent on gaining market share is how the brand builds knowledge and advocacy among those tasked with selling the devices. This includes retail sales advisors and contact centre sales teams. When premium devices are pushing £1,000+, the customer also wants to have a touch and play, especially when moving into a new brand. While we are spending more of our lives on digital channels and less in shops, the fact remains that when people are shopping they are doing so with ‘purpose’. In other words, they are intent on buying something. A proof point for this is that we have seen conversion rates of over 40% of product demonstrations leading to a sale. Therefore having the right skilled staff in-store to make the sale on more infrequent trips is critical. Consumers also trust brands they can see in stores, as that lets them know that, as a brand, you are committed to the marketplace.

Being quick to adapt to rapidly changing circumstances

In today’s world, it is hard enough to plan two weeks ahead let alone six months. Therefore quick thinking and flexibility are critical. Brands have needed to adapt quickly to sudden government decisions, such as the two national lockdowns and various local restrictions we have seen. Many of the brands I work with have transitioned their activities back into distance sales with as little as five days’ notice. An omnichannel strategy has been needed with non-physical channels critical in 2020. Despite non-essential retail being closed, effective brand engagement continues through innovative e-learning and e-commerce. Many consumers upgrading or shopping for new devices won’t have the option of heading to the high street so have gone down the online or contact centre route. Brands that have been able to switch to providing virtual training and support to these channels have seen positive results.

Premiumisation is a good long-term strategy

A recent report by Counterpoint indicates that the wholesale average selling price (ASP) of the global smartphone market increased by 10% in 2020 despite a decline in shipments and the decline in premium products was less steep than the overall average. The reason being, there has been less economic impact on premium smartphone users. Huawei is a good example of a brand that established itself in the premium category in a relatively short space of time. To succeed in this marketplace, there needs to be a real focus and clarity on what your brand stands for and where you want it to go. A halo effect can drive the overall success for a brand. Driving customer buy-in at the mid- and low-level remains important, but solely targeting the lower- and mid-tiers will cause problems in the future. This is because you will need to buy your way into the premium market. The unintended consequence is that a brand can find itself in a low tier hole that is extremely hard to get out of.

While the market remains challenging, the brands that succeed are the ones able to adapt and respond to the changing needs of consumers. This customer-centricity is what has underpinned the success of innovative mobile companies over the past decade and will be the foundation for success whatever the next year holds.

To read the full article please visit The Drum.

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Jul 20 2020
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Demonstrating sector knowledge & experience

We reckoned that as the lockdown started to kick-in back in March our clients would want their agency to continue providing them with fantastic insight and analysis of the changing situation in the channel.

So over the past 5 months we’ve continued to demonstrate our experience & understanding of these sectors by keeping them fully briefed on the latest situation with insightful reporting that has seen Gekko Marketing reports, Scrapbook decks  and Newsletters going out on a weekly basis.

These resources have been highly valued and instrumental in shaping our plans for getting our brand teams back to work as rapidly as possible with the easing of lockdown. 

And our latest ‘Future Outlook’ report looks at the trends we are seeing coming into the 2nd half of the year and beyond with predictions and analysis, bearing in mind the impact of the coronavirus on the markets.

Speak to us to find out how our sector experience can add huge value to your retail campaigns.

#Resilience #Ability #Experience #People.

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Jul 16 2020
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Getting our teams Back to Work

As the Gekko team returns to their positions from across the field to the head office we are ensuring that they feel safe back in the working environment.

Key to this has been using our newly developed online engagement platform to provide crucial safety protocol training to every Gekko employee.

We’ve also been creating unique PPE Packs for each team member to suit their role. This means that everyone will have the correct equipment to keep themselves safe and their work areas clean.

From face masks and visors to cleaning kits and POS, we want to make sure that the team knows we are putting their health and safety first as they return to their new normal.

Follow us on LinkedIn and our Blog to read more posts on this and how we’ve shown resilience, and demonstrated ability and experience in supporting our people and our clients over the past five months.

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Jul 14 2020
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We’re still here, we’ve been busy

2020 started positively for Gekko with renewed campaigns and new clients and a sense of optimism for the year ahead. In the first week of March we were recognised as the Marketing & PR Agency of the Year at the PCR Awards.

Lockdown put paid to many plans and campaigns but having anticipated some of what lay ahead, we were quick to put measures in place to support our clients in new and creative ways and above all to keep our teams safe.

Gekko decided it would adapt – we would be resilient, we would innovate and invest, all with a view to getting our teams back to work as soon as possible, and putting their concerns at the heart of what we do – and in doing so doing our bit to get the nation and the marketing industry back on its feet.

Now that non-essential retail has been reopening over the past weeks and our campaigns involving field teams have been heading back in-store to support our brands and the retailers, we’re proud of what we’ve done to make this happen. Over the coming weeks we’ll publish a series of posts outlining what we’ve been up to supporting our brands, our people, retailers and ultimately consumers as they’ve shopped initially online and in recent weeks back in stores.

Speak to us and find out how working for and with an agency that has shown resilience, and demonstrated ability and experience in supporting our people and our clients over the past five months.

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Jun 26 2020
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Luxury Retailing in Times of Crisis — Regaining the Crown

Gekko Retail Marketing Females Tablet

The luxury landscape is changing and world-renowned brands are feeling the impact from consumers’ changing behaviour, a post lockdown drop in revenues, and higher costs of raw materials. Gekko MD Daniel Todaro dives deeper into the topic.

I read with interest about how Luxury Fashion Boutiques opened in Paris, one of the first capitals to do so. This created much excitement amongst those fashion-starved aficionados and trend-setters.

I’ve said it before: Retail is possibly one of the most dynamic industries globally and luxury brands lead in this area of expertise in many ways, like no other. Retail, in particular luxury retail, has had to continuously adapt to changing consumer behaviours over the decades, as well as the trends that drive the desire to shop. Offering choice that appeals to every distinct generation and their character traits is essential to maintain desire.

SEE ALSO:Live the Experience and Feel the Brand

At the high end, Louis Vuitton, Dior, and Hermes are offering customers private shopping sessions; no doubt, these will be to their loyal customer base. Done creatively and properly, these sessions will also offer deviation from the so-called ‘new normal’ to create another level of exclusivity and brand attachment.
For others, though, with the need to quarantine for 48 to 72 hours garments that have been handled, let alone worn, as well as disinfecting changing rooms after every use, it becomes challenging to maintain that allure of a luxury brand.

This challenge is perhaps demonstrated by the lack of customers just one week after re-opening, queuing to cross the threshold of ‘fashion heaven’. In the first week, the initial rush drew masses that complied with the carefully orchestrated queues. These excitable brand devotees could not wait to indulge themselves on May 11th, with crowds flocking to the boutiques, but were queue-free just one week on. With no tourists in the city and the initial rush satisfied for those desperate, the demand has dropped.

So, the challenge for luxury brands is how do you make it matter for consumers? Why am I queuing and what do I need the items for when there is nowhere to go, no bars, clubs, or parties to attend. With restaurants not open for that special occasion or to meet friends and live events, awards, launches or red-velvet rope to get waved through, why bother shopping? No one will see that new watch, bag, dress, or killer heels, so now the thought of spending your money deviates to other activities and worse, alternative brands and products.

Shopping per se and, in particular within the luxury sector, will not disappear — well, not just yet. But how a brand targets an audience to shop differently, with purpose, may diminish if not handled innovatively. Therefore, learning from this rather frustrating lockdown is an opportunity to move away from the conventional norm and spearhead change that delivers the purpose many expect.

With a forecasted 30% decline in the personal luxury goods category this financial year and whose reliance on China accounts for 35% of the luxury goods market, it’s becoming more challenging for brands to appeal to their once established audience and broaden their reach and appeal beyond just being luxury.

Examples of those feeling the impact of the changing luxury landscape are, surprisingly, the masters of luxury. Kering, the owner of brands like Gucci, Bottega Veneta, and Balenciaga, reported a 15.4% drop in revenue in Q1. Likewise, LVMH, owner of Louis Vuitton, Christian Dior, Bulgari, Fenty, and Givenchy, reported a 15% drop in revenue for the same period.

Luxury brands, from Chanel to Louis Vuitton, have increased prices for some of their most coveted products as they seek to make up for lost sales during weeks of lockdown. Chanel said, in late May, that it was increasing prices for its iconic handbags and some small leather goods by between 5% and 17% around the world, as the pandemic had pushed up the cost of certain raw materials.

Jewelers are not immune, either. Exports are down 21.9% for Swiss watches, with the closure of watch factories and their global retail network hitting their sales hard, even more so as this sector deliberately avoids online with only 5% of new watch sales transacted online. The result is that the total volume has decreased by 43.1%.

Therefore, the need for immediate change is at the top of the to-do list for every brand, whether it be luxury, exclusive, or desired.

SEE ALSO:Truth — the Anchor of Luxury

The Perspex screens, social-distancing floor stickers, masked sales associates, and complete avoidance techniques employed to stop shoppers touching items, won’t be acceptable to many. More so, this increases the impact on brands whose equity diminishes as precautionary measures blur the lines between exclusivity and normality.

What retail and the luxury sector are experts at achieving is evolution. The innovation in customer experience we see on the high street more often than not started life in the luxury sector: Burberry, with its iPad-clutching sales associates several years back is a prime example, now common across the channel. Therefore, while brands and retailers start implementing reopening plans, it’s an opportunity to think about how the next generation of retailing begins, and many will be looking to learn from luxury brands.

SEE ALSO:Luxury: Branding Roundtable No. 14

Change requires a flair for dynamism to aid survival and create those meaningful connections through an omnichannel, eco-friendly, societal, and technology-driven approach. Enhancing the customer journey post-crisis to continue the brand experience for all consumers, more so for those who chose to shop with you, is essential in creating long-lasting emotional brand engagements that convert naturally, without pretension, into valuable sales.

Article originally published on Branding.com

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