Whether you plan to actually make a pricey purchase, high-end experiences can be magical. No aspect of shopping is as globally recognizable as the Union Jack Debenhams logo. Even in far-off territories, we hear tell of Neiman Marcus and Bergdorf Goodman’s splendor. From the historic Harrods in London with food displays that look more like art installations to Japan’s six square-mile-high Prada warehouse, across the globe, flagship stores span every territory, and the shopping experience they purvey often trumps that of secondary and tertiary store locations. Spanning a few of the world’s most fashion-friendly locales, we explore the world of high-end flagships.
High-end stores of any size are unique. Most are located in fashion centers such as New York City, Los Angeles, London, Paris, Tokyo or Milan (unlike discount malls and department stores). Most are located in shopping centers, or on streets that historically have attracted tony retailers. High-end centers are often updated, and feature new architecture and design. Some include works of art and their buildings may have public spaces available to rent for private events. Many have full restaurants or bakeries, and often offer people watching, virginal young women respectively enjoying the upscale goods and established patrons. They have heavily-trained staff that treats customers as if they were elite like themselves. Clothes and accessories are displayed with fine art sensibilities and cleanliness, often in the size that runs out first in front, electronics like handbags and cosmetics also leading the floor and sale racks in the back. Prices in full line stores are at full price, and may have in-house on-site tailoring for an additional cost to customers, while prices at the outlet versions of the store are marked at discounted prices, with no tailoring available. The landscapes in the parking lot, outside of parking lots, and on the streets surrounding the shopping centers are tidy and landscaped. These stores do not require advance notice of entry. They hold public hours of operation. A new store front mannequin is often adorned the same time or soon after the window installment is changed.
Definition and Characteristics
High-end shopping is known by a few different names, including high-end retail, luxury retail, and sometimes up-market shopping. High-end goods and the people who shop for them are referred to as luxury goods, and a person who is wealthy enough to shop for such unique and expensive items may be called affluent or well-to-do. Affluent may also mean earning a large salary from the right job.
A high-end shopping experience is characterized by exclusivity. High-end retail may only be available in certain areas. For example, one might not find high-end shopping available in certain rural areas or other towns or cities beyond those that are extremely large and have a high-society component to them. Also, one might not be able to find the apparel offered in high-end stores at any other retailer within a wide area. In fact, some high-end labels may only be found in one store throughout entire nations or continents. Additionally, high-end retail usually offers higher-quality pieces than those that can be found in casual apparel stores. These articles of clothing may be made from materials ranging from cotton to silk or other silks. Many high-end retailers also sell jewelry, accessories, or even home decor.
Significance of High-End Shopping Experiences
Shopping experiences vary widely, from thrifty, budget-friendly stores to high-end department emporiums that mark the fabric of the community in which they stand. Studies of retail and shopping, however, have generally focused on either broad, socioeconomic impacts of the shopping experience (like business development and community social capital) or the micro-level, personal meanings and experiences of customers. In conversations about shopping, high-end retail often deals with both or the interconnections: in other words, luxury retail and whether it belongs at all in a shopping district is about the social, economic or cultural world in which it is situated, and it is about the people whom this marketing and presentation targets. In many ways, some of the diverse feelings related to this research questions – whether at the city, the district, the retail, or the customer level – are interconnected with broader cultural beliefs about shopping as this space that can mean both community or cutthroat values, where visitors enter these ecosystems and, consciously or not, navigate markets, values, and societies.
Shopping has historically been linked to tourism – especially where shoppers are encouraged, as tourists, to spend money and elevate their personal or community social status; today “shopping” is the number two activity performed by city-visitors, just behind dining out. Travel and shopping combined is a billion-dollar global industry, and purses are increasingly high-end: in 2009, global tax-free shopping purchases in cities around the world climbed two-five percent, led by Chinese extra-territorial shoppers. Whether shopping is actually part of the vacation, however, is less clear – the project(s) of travel, play, and commerce do not always fit neatly into a category with always-fixed ontology and endeavor. Nonetheless among those who do shop on vacation, status and style are a component: in a 2007 survey of travel and spending, the Research found that 70 percent of travelers are “stress-shoppers” who aim/prize/pride in arriving home with branded purchases. Even if shoppers are not purchasing luxury goods or souvenir shopping, luxury retail can affect and influence the dynamics of the area as larger society and cultural industries, and luxury retailing can also have long-term impacts on visitors, residents and the community as a whole.
Iconic Shopping Destinations
The Rodeo Drive of Beverly Hills, a city in the Los Angeles County of California, is one of the most diverse in the world with its global demographics and visitor profiles. Along with its climate, it has always offered an all-season destination for shopping and strolling. The fashionable atmosphere of the street has contributed to its reputation as a premier shopping destination. The area contains two of the top ten prestige luxury properties in Los Angeles and is the site of Beverly Hills’ annual Rodeo Drive Concours d’Elegance on Father’s Day. The city of Istanbul and its malls have become the behemoths and the most luxurious addresses for shoppers; they contain stores that can be found only in the luxury streets abroad: Les Ottomans, Warehouse, Punto, YKM, and Sanko Park are only a few examples of this trend. Even some Americans living in Turkey say they would rather shop at the malls in Turkey because you can find every brand from all around the world.
The Omotesando Area of Tokyo, Japan, is known for its reputation and status as the most affluent district in Japan and one of the top ten wealthiest neighborhoods in the world. The Omotesando street is named after a tree-lined avenue, serving as the (often highly visible) main street for this affluent area and shopping neighborhood. Fashion flagship stores from around the world are gathered in the area, offering rich experiential shopping and fine dining, as well as first-to-see fashion labels. Today, the street is known as ‘Tokyo’s Champs Elysee’ and is a luxury shopping and destination site in Japan. The International Council of Shopping Centers (ICSC) and the American Research Group’s (ARG) American Express Market Place Track Spending Monitor in the USA found during the 2008 recession and recovery that an increasing number of consumers were starting to significantly shift to the consumer behavior pattern called ‘strategic shopping’ (a trend purchases from which significantly tie people to the experiential aspect of the goods being sought more than the price).
Paris, France
Whenever we think of high-end or luxury shopping, a few cities around the world come to mind. For many of us, Paris, France, is foremost among these elite destinations. Not only is the Eiffel Tower a bucket list item for millions, but the city is also a shopping mecca. Throughout history, Paris has remained one of the most important centers of European politics, culture, commerce, and fashion. Not only was the city part of the 18th-century grand tour for wealthy prodigals, but it played host to some of the world’s earliest “arcades,” which the French call “passages couverts” – covered, outdoor shopping corridors that offered people comfort as they strolled and shopped.
Paris boasts readily-accessible haute couture ateliers, exclusive perfumeries, and niche markets. A mid-range boutique can be found on practically any street corner and there is a farmer’s market to be found on practically every day of the week. It’s also home to Les Frigos, an avant-garde squat originally established as an artistic manifestation of the late 1960s worker’s movement and the trade union of commercial fine art. Today, Les Frigos houses more than a hundred individual artist studios, making the Parisian graffiti scene among the most diverse in the world.
In 1855, what would grow into La Samaritaine opened its doors to the public. This center of commerce, named after a famous department store in Paris that still stands to this day, was considered one of the very first malls in the Western world. Her collection of artifacts from around the globe was legendary. Emperors, dukes, princesses, and other well-to-do Parisians were among those who flocked to this venue to feast their eyes.
Milan, Italy
The Italian city of Milan is today a major international centre for design and fashion, known for its fashion rule breakers and the entrance of illustrious fashion houses to prominence. The city is even the founder of international fashion events, a central reference point of the “world” of fashion and luxury brands with established prestige labels of ready to wear and accessories in developed with opens landed throughout the world. With an entire area now dedicated to designer stores, Milan is not short of exciting and well-finished shopping experiences in attractive surrounding. The setting, the allure of all things luxurious and the clothes themselves, combine with the different shopping opportunities to create a high-end retail experience that is quite possibly unique in all of Europe.
Many would say that shopping is a reason for Milanians to go to an area like the Quadrilatero d’Oro, comprising the via Montenapoleone, via Manzoni, via della Spiga and Corso Venezia, avoiding at all costs Via Torino as this is where they go to do their retail. Each of these streets is a true temple of high-fashion that houses an array of designer clothes, accessories and footwear plus no small amount of jewels and watches. It is said that the biggest names, those that are looking to make a profit over the long term, buy property on these streets. In addition, smaller stores on the streets that cross, participate in the shopping oasis, and for a most luxurious shopping experiences make a visit to the Galleria Vittorio Emanuele II and a stop by Bonatti Gloves is an absolute must. The family-managed boutique focuses on high-quality, creatively designed gloves for both day and night-time wear.
New York City, USA
New York City, USA, is a major world city with approximately 8.5 million people residing within the engine of the city’s trade, retail, finance, and other businesses. It is a destination for high-end shopping and luxury products. Cosmetic surgery, designer clothing, jewelry, and expensive real estate for living, working, and visiting await those with enough money to shop in this city. There is a horde of businesses and salespeople here to assist them in finding and acquiring what they desire. In a metropolitan city of notables like movie stars, professional athletes, and company owners, there is a market for extra-special items, and stores like Tiffany’s, Bergdorf Goodman, and Sotheby’s cater to them.
These shops are not only known for their luxury items but also for their luxury shopping experiences. “When our customers find their way to Bergdorf, they are looking for an elevated and personal shopping experience,” said Sydney Berger, senior vice president and chief operating officer of the Bergdorf Goodman Men’s Store. This facilitates a more intimate customer relationship and leads to personal relationships and other opportunities. Most of these high-end shops present limited lines of high-end trends in each season. Such high-end shopping facilities are changing buying-and-selling behavior—for those who cannot afford to shop high end or those who are affluent yet choose not to do so—quite significantly. New York City is not the only metropolis that offers a variety of labeled luxury retail shops, but we include it in this book, focusing on the quintessential experience of shopping, traveling, and visiting this world-class city.
Luxury Shopping Streets
In addition to luxury shopping destinations, there has been an increased interest in high-end retailers located on luxury shopping streets around the globe. In many ways, the geographical locations of high-end retailers aid in curating the luxury shopping experience. In high tourism areas, companies often rely on luxury brand advertisements to differentiate themselves within the market. More and more high-end retailers are entering into city shopping streets in upscale neighborhoods as well. Across the globe, the top-paying streets often have one or more things in common: they are located in the heart of the world’s most prominent cities, have large amounts of foot traffic on a regular basis, and have been around for several decades.
Luxury shopping streets play a vital role in the identity of a city, shaping its image and reputation. This is why cities continue to strive to obtain the highest rents on these luxury streets, as the more luxury retailers a city has, the more it will be known for luxury shopping. These high traffic shopping areas allow luxury companies to “sell brand” as opposed to their products in their stores, so the more customers in the area, the more likely a luxury branded store will have visibility. By renting on luxury streets or a prime shopping area, retailers help to shape customer choice at the start of the purchasing process. Although some areas may be more expensive and therefore attract more established companies, with the increase of online retailers, foot traffic may not be as important of a factor when searching for a flagship location.
Fifth Avenue, New York City
Just Say Yes: Exploring High-End Shopping Experiences Around the Globe
Fifth Avenue, New York City
Fifth Avenue is strewn across midtown Manhattan on the borough’s westerly side. It is reputed as a focal point for New York City’s luxurious shopping district, fitted with some of the most frequented, high-end stores in the world. Shopping on Fifth Avenue is a coveted experience and is listed on the travel plans of most who visit New York City from elsewhere around the globe. The street is known for its striking architectural heritage and is crammed with spectacular flagship stores including Saks, Cartier, Louis Vuitton, and a sporadically busy Apple store, to mention a few. Hotels such as the Peninsula New York and feature shops inside and afford splendid views of the avenue and its adjacent buildings.
Fifth Avenue’s reputation for aristocratic living and extravagance was formed by Caroline Schermerhorn Astor, a well-respected philanthropist in her own right. Infuriated that high society had moved up to Madison Avenue, she took a repose on the second floor of Goelet house, right along the avenue’s northwest corner. Her evening “at home” times were renowned in their own right, and the most prestigious went to her, and to her home to ask, ensuring that Fifth Avenue was a strong corollary for the essentials in goods and fellowship, particularly at prominent societal events.
Bond Street, London
Always ahead of the game, Bond Street is one of the oldest shopping districts in the world. For many decades, masters in the arts of premium goods sell diverse items from diamond jewelry to rare antiques on Bond Street in London. In fact, the labyrinth of Georgian and Victorian-style streets has been a residential and retail location in Mayfair since the 1700s. The lane now deals in some of the most luxury retail in the world, giving rise to innovative signature shopping ‘experiences’ that the street hopes mesmerizes tourist-shoppers from diverse global backgrounds. It still is one of the most exclusive luxury shopping streets around.
Established in 1700, Bond Street still delights shoppers with its many fascinating boutique stores, designer shopping areas, auction houses and evocative shops selling an impressive variety of premium art and antiques. Harrods, Harvey Nichols, and Selfridges are the most majestic shopping department stores and shopping centers available in the city. Bond Street identifies itself through the offering of acute luxury experience, the provision of indulgence, the values it attaches to unswerving assistance, savoir-vivre and performance, as well as the strategy of assembling the top-notch of different sectors in the prime location of London. It is also one of the most globally important retail chains of luxury shops that pursuits to maximize the exchange and the possible variance of sales by the facility. Bond Street therefore captures a conglomerate of retail units; designer clothing shops, watch and jewelry stores, and greeting cards shops alongside to the art and antique retailers’ businesses that had been the binding real.
Ginza, Tokyo
Since the re-establishment of the district during the Meiji era, Ginza has become Japan’s most famous shopping high street and luxury shopping street, along with the Champs-Elysées in Paris and New York’s Fifth Avenue. Particularly the first few blocks from the famous Ginza Wako clock tower (carrying the Seiko clock) signal the brand image of Ginza with stylish and iconic flagship stores of Issey Miyake, Café Paul, and Mont Blanc which all serve a European (if not ‘Parisian’) feel, although Issey and Paul are, in fact, Japanese firms, showing the transformation of Ginza’s retail base as we have progressed through the 20th century. However, as we will see, the leading firms which have done most to create that atmosphere in Ginza today are not the old department stores mentioned above but the mainly continental and North American fashion houses which began to open here in increasing numbers from the mid-1970s. Much of this retailing growth had taken place on Mohei, as the Jinpin Dori High Street has simply attracted merchandise outlets on small lots.
Not only this, but in tandem with fragmented blind letting of new showrooms by the major international companies have been the due diligence of which were built by firms of joined force capital, bringing in prestige and cementing the upward mobility of the ground floor products and experiences. So what we see here is a three-decade development into large lots, fragmented letting, an increase of corporate let activity, and a major role for finance capital, all conducted in conjunction with one another. Firms of joined force capital typically co-operated with a fashionable architect with skilled practice in the design of retail shops. Yet, as I have already noted, Ginza is a highly seasonal area, so most of the valuable window-shopping positive place-franchise value is only extracted revenues are only generated for a maximum of six months in the year from December to June.
Innovative Retail Concepts
Some of the largest luxury brands in the world are easily recognizable by their slick and modern retail environment. Technology is ever evolving, which immediately translates to the luxury retail oasis that a high-end shopper is attracted to. Traditionalists may find it hard to let go of the old-world mentality of luxury shopping, but brands are surely moving with the times and embracing technology on the shop floor to enhance the life of luxury shopping.
Pre-Internet, there was basically only one way to shop. You either had to go into a store or physical outlet to see the product you wanted to purchase: a suit made by some Italian tailor, a new car, or even a holiday. The only way to access a “catalog”, even before the glossy magazine, would have been to visit a store. Companies also used agents who were “on the scene” and could offer the product favorably, encouraging the customer with wine and nibbles. With the rise of department stores, access to branded merchandise became more widespread. Discounted items would go on sale to the outlet end-user, and new stock would go into the mainline multi-brand stores. This means that every three months, if you wanted to buy a new Chanel bag, you would do it at a Chanel store or from the Chanel salesperson who came to the store. But in 1916, the Salvatore Ferragamo luxury house began to use shoe drawings to design new shoes and receive orders for made-to-measure handbags.
Technology Integration in Luxury Retail
Luxury shopping has changed considerably in recent years, from being inspired by the traditional and exclusive touch and feel factor to the need to integrate technology in the shopping journey. It is quite effortless to see why brands and retailers are inexorably getting inclined towards integrating innovative technologies and luxurious store environments, as they are the ones required not just by the customers of today, but until the next three or so decades.
Virtual and augmented reality is at the heart of the luxury shopping mosaic. In the year 2017, ELLE Italy became the first magazine to collaborate with Gucci for the creation of an AR-powered cover. In more expensive stores that are generally designed for those well-off customers who can spend lots of money, technology can play an essential role in engaging them without being intrusive. With disruptive services in-store, retailers and boutiques can make sure incentives translate into strategic business.
Technology gives the customer an opportunity to perceive stores in an entirely new way by creating virtual and augmented realities. This can widen the potential relationship with the customer. The company or brand must take into account the experience they want to propose, analyzing each step from the launch to the final part of the shopping process. The use of technology allows the company to engage customers, whoever they might be, offering a unique, engaging experience which thus increases brand awareness while improving marketplace penetration.
Luxury leads fashion in the adoption and use of technology to improve the customer experience. Those who embrace technology innovation not only enhance profits but also produce new streams.
Personalized Shopping Experiences
In most luxury retail stores around the world, sales reps do everything possible to smoothly and seamlessly steer the shopping experience to their benefit. But in a high-end men’s clothing store in Milan, the unusual happens: a well-dressed salesperson walks a customer around the shop, pulling garments and even scents from the shelves; he’s curating a shopping experience to the last detail. “This one is from Florence, for a perfumery called Aquaflor, it’s been open since 2007 and their logo is the iris, so for Florence it is iris-based. It is the best!” explains the sales rep as he slips off the cap and hands it to the patron while grinning and raising his eyebrows.
It’s a singular way to shop, but the concept is roundly catching on. Called slow shopping, Americans are not all strangers to specialized, one-on-one browsing — in this hemisphere, several stores have begun offering private shopping events, which are scheduled after-hours and grant one or a few customers exclusive access to the materials within. And internationalization is present in Milan, too. It is, after all, one of the world’s most well-known luxury shopping destinations, so the city is full of stores at various levels of luxury. But from this century, there has been a trend for European luxury retailers and fashion brands to seek global expansion. Rather than everyone coming to them, the Europeans believe they should facilitate the customer’s wants and go to these new well-off markets. The world is expanding, so if there is a demand for European-style products, it is up to the Europeans to supply them with a shop close to home.
Emerging Trends in High-End Shopping
Sustainable Luxury
Sustainable luxury is tailor-made to fit the ethical consumer ethos, and its growth has been tailor-made for millennials due to their makeup and consciousness about ethical consumption. To reflect the evaluative tendencies of this generation, sustainable buying is high-end, but luxury shopping trends are currently showing mid-term growth according to research and data. The global report, which is particularly aimed at the fashion industry, notes that 57% of today’s global respondents are ready to “change their purchasing habits to reduce negative environmental and social impact in the world.”
Pop-Up Stores
As well as fashion brands, hard luxury brands adopt this strategy through launching limited edition products via rare retailers to attract exclusivity and luxury-driven clientele. The concept of mass marketing known as “limited edition urban chocolate” that started humorous TV ads in the 1970s in countries like Germany mentioned that only “100 smart 100 unintelligible” consumers could get this product. Currently, ‘100’ replaced as ‘500’ or increased, but the limited edition limited duration is increased. Limited edition and pop-up stores are prominent marketing tools in high-end and luxury retailing. Over the last decade, limited edition collections and pop-up store strategy have begun to emerge as popular international trends. Research in the American and Chinese markets revealed that luxury sales increased by 25% as a result of brand partnerships. Even though it is not as developed as in other sectors such as fashion and high street products or products like perfumes and cosmetic products; marketers experience vital changes in the luxury market like the other sectors. These changes enabled them to be innovative in an area where innovation is difficult to implement and competition is fierce. In the last ten years, global brands eagerly resorted to limited edition works and pop-up stores. Marketing practices towards this area increased in a flurry. High-end and luxury retailing has demonstrated dynamism in recent years.
Sustainable Luxury
A major movement within the luxury retail sector is the increasing awareness of the desirability of luxury items focused on environmental and ethical aspects. Luxury customers are increasingly aware of their social and environmental obligations, and they want to see those same values reflected in their purchased products. They will not stop shopping luxury, but they will continue in the spirit of fashionable consumption and demonstrate an increasing social awareness. “Many luxury brands are now striving to incorporate sustainable materials, responsible manufacturing processes, and fair labor practices into their overall offerings,” asserted Mintel’s Sharp.
London has a particularly high presence of such shopping options when compared to other key shopping destinations. Georg Jensen launched the Konkylie (Mussels and Clams) dinnerware pieces made of 15 tons of recycled champagne wire. The jewelry and tabletop items range in price upwards to 800. Calvin Klein’s new flagship store also features exclusive environmental shopping options called CK Eco. The shop will carry several lines exclusive to the London location. “Maybe if it is not truly environmentally friendly at least the PLC is showing a new future how management and marketing can be done in a manner that is more environmentally friendly and takes the shareholders, the community, the consumers and the employees into account. That would be akin to a socially responsible corporation. That is what I would hope for in the future.
Pop-Up Stores and Limited Edition Collections
In contrast to traditional brick-and-mortar stores, pop-up stores are temporary retail store experiences. Luxury pop-up stores are intended to reach out to customers quickly and to have an impact with a spectacular shop design and a very limited product range. Like pop-up stores, the aim of limited edition collections is to create exclusivity. Offering a limited product range, customers have to decide quickly and are willing to buy additional products, they may even not like. Looking at a selection of pop-up stores and limited edition collections of luxury brands, they were located in the most important megacities with a million inhabitants and more. What is striking is the short time of the events with an average of not even a week.
Through an in-depth face-to-face pretest with the store manager of KAT, we gained an in-depth and precise insight into the motives behind the planning and implementation of the task. Our findings show a long-term, innovative marketing strategy for the establishment of a product brand position and customer loyalty. Our empirical research shows that there are various flagship stores around the world, which embody less of the classic flagship store in the sense of a ‘calling card’, but more location-bound shopping experience with active sales support. This reaffirms the actual course of digitization in the luxury retail fashion industry, since uniqueness, exclusivity, rarity, limited availability and limited editions and the experiences are not digital. There are individual pop-up stores around the world with such a defined location-bound shopping experience. The aim of this research is to explore the latest insights into the world of luxury and added value in pop-up stores and flagship stores with unusual experiences.