The upcoming season has a lot to offer to bag lovers. With travelling restriction lifting, people are free to go out for outings, and as a result, trends around fashion and luxury industries are surging. And the fascination of forging elegant style statements through the bag people want to own and flaunt. These beautiful mini creatures help buyers carry all essentials like masks and mini-sanitizers, offering all sorts of practical use and helping people showcase themselves as fashion icons. The new season's fresh trends will be quite rejoicing as bag shapes, and motifs are in for an experiment. However, we have another option that will help brands attract more buyers and ultimately lead to more sales. It is handbag design software, a customization solution that will allow buyers to customize bags that fit their style and purpose after installation on the brand's website. The new-age solution allows brands to garner more profits as it enables them to let buyers determine what collection they like and create unique designs that will subtly promote their brand value. Bags Designing Software Offers Solutions to Redeem Yourself in the Luxury IndustryDuring the lockdown period where stepping out and purchasing new products was strictly prohibited, buyers and fashion companies saw online shopping as the only ray of hope. It helped brands expand their customer base and helped customers pass their time and indulge in some luxury hobbies that enhanced their lifestyle. And what could have been better than purchasing products, such as handbags and bags that aid women buyers in improving their status quo? Also, by launching products, online brands could leap various boundaries, such as geographical locations, real-time feedback, and order placement that would hamper its launch earlier. The latest technologies allow brands to update their website and other social media platforms, and its frequent followers' buyers will get a news feed related to it.
Similarly, other benefits have compelled many brands to jump into the pool of eCommerce. Additionally, as more vaccines are rolled out, the luxury market is set to witness a surge in its sales. With pent-up shopping demand potentially bringing teeming hordes hungry for tactile shopping experiences back to stores sometime this year, luxury retailers are prepared to meet these new challenges. The online marketplace offers enormous lucrative opportunities for luxury retailers to start with a fresh, bold, and innovative approach. Brands need to shed the past waste and inefficiencies that brought many a hallowed brand into the dustbin of history and embrace new models that tightly align the needs of brands' customers and talent. If you are wondering what the new changes might be and how your company should be ready to welcome these transformations, this blog will help you answer all the questions. Here are a few trends and solutions that will help handbag manufacturers and retailers to flourish in the luxury market: 1. Use BNPL to Expand Customer Reach and Enhance Shopping Experience Fashion is projected to generate $712.9 billion in eCommerce revenue annually by 2022, meaning brands must bring in Gen Z and millennial shoppers. These consumers have more and more spending power, and companies looking to succeed will have to entice them — but doing so is only half the battle. Cart abandonment continues to be a concern, as the abandonment rate for the fashion industry hovered around 83 per cent in December of 2019. With the boom in online shopping, buyers are willing to purchase anything and everything, but they face huge payment problems for a long time. Either price was too high, or the paying capacity of the buyer was limited. Whatever the case, the business would always suffer as a buyer during the payment option; they would abandon the cart thinking it was unaffordable. Therefore, brands had to develop a solution that enabled buyers to buy any product they wished to purchase without worrying about the payment. Hence, Buy-now-pay-later (BNPL) service has swept fashion eCommerce across the price spectrum. As consumers demand more flexible ways to shop and pay online, brands are capitalizing on buyers' increasing demand for BNPL services for growth. It helps them to provide flexible payment options that will delight customers and boost business. In fact, it's essential to get on the BNPL-train sooner than later: 30 per cent of European e-commerce spend is expected to be made through BNPL payment methods in 2025 – a whopping 92 per cent increase compared to 2019. This also indicates that the service is anticipated to witness intense competition as the payments provider of choice to grow market share and revenue. While some may be looking for reaching profitability, a new class of deferred payments companies are hoping to embed themselves in the fashion ecosystem beyond the point of payments. Many BNPL providers, such as Klarna, Afterpay, Affirm, Paypal and others, are adding merchant services and consumer perks through acquisitions and expansions. Klarna gives all of its merchant's access to video clienteling technology thanks to its July acquisition of Hero. Paypal is expanding the number of its in-store return locations in the US through its acquisition of returns-tech provider Happy Returns. Afterpay is commissioning exclusive products through collaborations, most recently with beauty influencers Bretman Rock and Crocs. 2. Approach New Growth Steps with Technology In the fashion world, they're always a plethora of founders and designers we read and hear about every day. There is not a single celebrity designer that includes celebrity-turned-designer or a designer-turned-celebrity, a socialite designer, an influencer designer, a millennial, or anybody famous or whose personal life or personality we don't know a little about. However, this trend seems to be on the declining curve as the fashion industry is witnessing the rise of talented, classically trained, dues-paid, a behind-the-scenes designer who wants their work to speak for itself. Fashion companies that were earlier harnessing the power of celebrity for over a century seems to pivoting their way and pushing more lesser-known names off the sales floor at major retailers like Macy's and upending the entire industry in the process. And there are ways that we still feel this today. Likewise, last week, Rent the Runway became the first private fashion rental platform to go public. The brand has taken the step to use technology to decrease costs, attract new customers and deepen brand partnerships as it approaches a growth stage. While its S-1 filing reflected a company still working to regain its pre-pandemic success, investors seemed confident that the addressable rental market has plenty of runways. The company started trading on the Nasdaq at $23 per share, above the anticipated $21, raising it $357 million and reaching a market cap of $1.7 billion. The company hinges on its future potential than its current numbers, including its potential to attract and retain more customers and brand partners and decrease operations costs. These are largely dependent on technology, especially its data capabilities. The company is not yet profitable and had a net loss of $171 million last year, compared to $154 million in 2019, on almost $257 million in revenue in 2019. As of September of this year, it had more than 143,000 subscribers (active and paused), down from almost 148,000 in 2019. Similarly, the 3D bag design software allows brands to leverage the digital potential of the fashion market by offering them robust and relevant customization solutions. The tool comes with built-in 3d technology enabling buyers to view the product as they design it so that they can make minute changes in the product. After installing the solution on the company's website, the designers and owners can sit back and relax and let their customers take the front seat to determine what they would like to wear and accessorize with. Since the customers will dominate the designing of the product and how should it look, brands won't have to manufacture anything beforehand. They need to provide their rough draft through 3d solution and let buyers select them from a wide range of e-cataloge and give it their own flair. This will save a lot of money for brands as they know what customers want and will only manufacture whatever is demanded. This would also decrease the cost of overproduced products which brands sometimes have to sell the unsold products through discounts, sales, and even burn them. Additionally, customization empowers buyers to speak their minds, become a trendsetter than following celebrities and influencers, and gain experience; they are willing to pay extravagant prices. Also, these novel solutions help brands establish transparency with customers as they can place orders in real-time and receive them in real-time, thus ensuring brands manufacture what has been demanded from them. It also helps in strengthening and deepening the relationships between customers and brands. 3. Capitalize on Virtual World Virtual reality is the new reality for the fashion industry, and it is high time they embrace it. It allows luxury fashion customers and influencers to view themselves donning the apparel or accessorizing it with some bags or any other products. And the beauty of this technology is that customers can experiment with their looks while sitting at their homes and sipping coffee. For instance, for their Autumn/Winter 2021 show, trendy brand Balenciaga distributed Oculus VR equipment for 30 press members to witness a fashion show entirely in 3D, with no real models or clothes. This was a big representation of what the luxury retail ecommerce will look like in the next few years, and brands must buckle their shoes and embrace these changes that range from sanitary restrictions to fashion sustainability, cyberworlds, and runaways. But don't worry, offline shows are not dying yet. While on this subject, Louis Vuitton also created fashion items for characters in the world-famous videogame League of Legends, which players could buy with real money. Adding to the seamless online and offline experience, Stella McCartney launched an Augmented Reality app for guests to use on her show. The idea was to point at the garden surrounding the runway to see it come to life with elements from the Fall 2021 collection. From there, they also connected it to their stores and enabled an "at home" feature. On similar grounds, online fashion platform Zalando has relaunched its Zircle app with added features. It is designed to be a peer-to-peer marketplace, will now offer free shipping with DHL for users in Germany. While only available for female clothes currently, the option to buy and sell men's clothing on the app will soon be added. Alongside the option to return Zircle bought clothes to Zalando in exchange for a gift voucher, the platform will also integrate Zalando order history so that all products bought on Zalando will be immediately available for resale on the app. 4. Lead the Omnichannel Race Even with the digital growth boost, the luxury retail sector is still struggling. The in-store experience continues to be buyers favorite destination as they can finally step out of their home and shop. However, brands need to think of new solutions to keep the trend going and fairly compete with the online experience. Omnichannel strategies have been put into place. Brands are upping their reach from using a pick-up in store feature to encouraging appointment booking online to meet with experts in-store. The global luxury industry is also adopting strategies outside of digital channels, which surely makes a difference in the digital customer experience. Below are some approaches that help bridge online and physical stores, especially with returning to the "new normal". Another case that will help realize the significance of omnichannel is Michael Kors launched on Zalora, Asia's online fashion and lifestyle destination. The partnership arrives with the debut of Karlie, a new satchel debuting as part of the Michael Kors Fall '21 collection. According to Mariella Merlino, luxury lead at Zalora, the e-tailer is striving to deliver the best brands to its customers, and this new addition brings new exciting news to them. Zalora already has a presence across many Asian countries, such as Singapore, Indonesia, the Philippines, Malaysia, Hong Kong, and Taiwan. The brand's partnership with the ecommerce platform marks its first online partner in Malaysia to showcase the Jet Set lifestyle. According to Kelly Lee, the regional general manager to Michael Kors, "Joining Zalora, a premier online fashion retailer, will allow us to further elevate our customers' digital experience via their robust platform. We are ready to offer an omnichannel experience to all Michael Kors customers with plans to organize more exciting collaborations with Zalora as the market navigates towards the new normal." Find the Balance- In the end, luxury is all about fine experiences and details. Having an online platform doesn't mean brands have to do away with the offline stores or replace them. Instead, they need to complement each of their stores, whether online or offline and ensure they provide a choice of channels that reflects consumer preferences and deliver a great experience in whichever manner shoppers choose to interact. The handbag design software by iDesigniBuy will help you a great deal to offer that experience and feelings translated into your revenue and conversion rates. Its customization solution with digital features will help you favor tradition and keep it alive in an ever-changing digital world. Connect with us now! |
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