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VIC strategies in Luxury: personal shopping and concierge services. Failure of experience with LVMH-owned 24S.

In August 2023, I received an email from 24S, an LVMH-owned online retailer with a unique presence of brands such as Dior, Louis Vuitton, Celine, and Moynat. They were launching a concierge service for VICs, and I fell into the category to receive an invitation.


I was excited. Whatever I saw in the letter was something I had as an idea for some time. Luxury concierge and personal shopper services are widespread and popular, but they usually operate without direct links and partnerships with the luxury companies. Which means the opportunities of such services are still limited. So having such offer from the luxury company itself (or independent partner as an option) could drive many opportunities for clients and the company itself.


I've been a client of the platform almost since its launch in 2017; my first order was placed in 2018. Although I haven't been a frequent shopper there, I could see numerous ways for it to develop and utilize the resources of LVMH with no extra charge, which could drive sales, service and loyalty (I had a quick review on my YouTube channel a year ago, here and here). However, there were still many gaps that were not filled over time. So, I shopped elsewhere but placed occasional orders on 24S.


That is why I was excited to follow 24S's journey – it could become a test point for LVMH in general. However, the experience was not what I expected to get. It failed at the most obvious stage. But let's start from the beginning.


What was offered in Concierge Service for VICs by 24S


The email contained the same information as listed on the website. I remember there was also mentioned of their ability to help source art objects and even rare cars, but I can't prove that with the email, as I couldn't find it in my mailbox.



So the main interest in the offer is:


  • private concierge — provides access to global collections and, as I thought, LVMH brands

  • personal shopper, to make a customer journey smooth. Personal shopper also provides with advice and selection on particular items and occasions — I rarely use that myself, but when working in personal shopping, I received similar requests from my long-term clients. Some don't enjoy shopping, some lack time, and some need more ideas or options to choose from.



As for the other options provided, they are additional but not the most crucial. Pre-ordering runway pieces is not widespread, especially when the wait time is around six months. Special experiences, whatever they may be, are also a bonus, but they're not particularly special when you can indulge yourself regularly without these perks. VAT-free options are probably aimed at tourists — we can see in financial reports that luxury fashion relies heavily on tourist shopping — but again, it's something VICs, especially top spenders, don't care about much.


Core service points in VIC experience


As a consultant, I emphasize three main components of the customer journey:


1) Supply: the range of offered goods. The selection must be careful but extensive to cover the client's needs 100%. "If I need something, I don't have to search; I will save my time and go to the place where I will find everything" - the main thought personal shopping/concierge service should aim for.


2) Professionalism: seems to be obvious, but this is often a stumbling block. What is professionalism? Apart from work etiquette and communication, it is the timely response to clients' requests with accurate and complete information provided. When it comes to a luxury brand on its own, it includes a deep knowledge of the brand and its collections; however, I don't consider it essential when dealing with the selection of brands. It is more about knowing where to look and having the ability to find something that fulfills the request and provide options - as soon as possible.


As an example of what I mean, a while ago we had a request at 2Jour Concierge about a soap dispenser and its outdoor material durability while on a ship. We checked the care materials provided by the brand, and there was no such information. Obviously, we didn't want to provide any other details than truthful ones, so we contacted the partner brand directly to get the information. As it took a day or so to get a response, we updated the customer with the interim steps taken to provide the most accurate information. This example illustrates what I mean by being timely - even if you are unable to provide a response as soon as possible, let the client know that their request is important and that you will return to it as soon as possible.


When working with VICs, it is also crucial to follow up with confidentiality and privacy.


It is also important to mention that to build long-term and loyal relations, there must be a slightly more complex approach rather than solely focusing on the quantity sold – this indicator alone doesn't build the client's trust. The quantity sold may be linked to KPIs, but along with other indicators. Professionalism also has nothing to do with looking down up to the client – a healthy and therefore long-term connection with VICs has to be built on a friendly and equally beneficial basis. I emphasize such approaches while consulting and offer options to develop in this way.


While customers often initially focus on the first feature  — supply  — they remain loyal mostly because of the second. Both of these features can further lead to the third stage of engagement with the client and foster their loyalty (and spending):


3) Emotional engagement | Extra value  — is the last step to cement relations with the client. It greatly depends on the client group and may include experiences (which I personally don't consider as great value if it can be easily bought), events that can be a point of emotional engagement with the personal shopper and company/brand representatives, or provide added value, for instanse as a place to make new connections (we will explore this further in the upcoming publication).


Personal shopping & Concierge service: Benefits for VICs


Mentioned before the main thought personal shopping/concierge service should aim for - "If I need something, I don't have to search; I will save my time and go to the place where I will find everything" - is definitely the most important, but apart from that:


  • personalised attention - tailored service and bespoke shopping experience;

  • guidance - to make informed purchasing decisions and discover exclusive items;

  • time efficiency, convenience and flexibility - while personal shopping service handles all the aspects of shopping process, from selecting items to arranging deliveries - VICs can focus on their schedule and still enjoy luxury shopping experience;

  • access to exclusive items;

  • confidentiality.


Personal shopping & Concierge service: Benefits for luxury groups


Apart from some obvious benefits like:


  • Brand Loyalty and Retention: by offering personalized assistance and guidance, luxury groups can cultivate deeper relationships with their customers. This leads to increased loyalty and higher customer retention rates as clients feel valued and appreciated;

  • Increased Sales and Revenue: dedicated consultants can upsell and cross-sell products, introduce customers to new collections or limited-edition items, and encourage repeat purchases, ultimately boosting the brand's bottom line


 – there is one more, which made me so excited about 24S offer. Luxury groups are extensively seeking ways to engage with VICs, and concierge/personal shopping services are a great way to adapt to changing circumstances and tastes. By changing circumstances, I mean marital status, the birth of children, the need for gift searching etc. When discussing tastes, I mean that the client may want to diversify and expand their brand/style preferences at some point or when family circumstances change – some family members may have different aesthetic preference.


Yes, luxury groups often build their strategy around each brand separately to avoid dilution. However, if developed in a careful and balanced manner, concierge/personal shopping services can enhance some brands from the group's portfolio that the customer was not aware of, or those that cater to changing circumstances and needs. That would greatly contribute to the supply component of the customer journey mentioned before, and retain the VIC's attention within the influence orbit of the luxury group. And bring sales. 360 degree service as it is.


So while a single brand can focus on broadening its offerings within the brand to provide solutions for different customers and different requests, a luxury group has carte blanche by offering different brands and entirely different product groups within the brands it owns.


What further gives the value to the service is a one-stop contact for fulfilling luxury purchase requests. If built thoughtfully, it won't dilute attention, a risk that is often feared, but instead provide cross-promotion, and obviously lead to more sales — I would even say more informed sales, which will further foster loyalty.


The further development of the service depends on key tasks:

  • If the group/brand is willing to focus solely on its own supply, it slightly limits the options for the customer - but becomes a touchpoint to introduce those who are not in the spotlight within the group;

  • If the group/brand also considers partnerships with other groups/brands (for instance, those that completely cover the gaps in product ranges within the group's supply or widen the choices) - apart from gaining commission on sales, it will provide an extra bond for clients.


The practice can still be tailored to single brands. An example of this is Hermes' policies, where keeping in touch with one devoted customer advisor is part of a customer tactics to acquire the most coveted pieces.


24S experience


A few days after receiving an email, I was ready to experience the service. I sent an email to the personal shopper, using the contact provided in the offer, but received no response. Then, I sent a WhatsApp message, introducing myself and requesting Loro Piana shoes – hard to get at that time. However, since Loro Piana belongs to LVMH, I was sure it would be easy to get with the concierge service offer.

No answer. August 14th was a Monday. I reminded of myself two days later and finally received a response. The personal shopper didn't introduce himself and began with "Dear" — you may consider me snobbish, but this breaks etiquette rules. What I was offered was not what I asked for. I was not provided with the UK price, which I requested. Finally – the price came with a 10% commission, as I am aware of retail prices on Loro Piana shoes. The commission may be okay, although it plays negatively here. But if there is a commission on such a service offered – it has to be clearly communicated, either in the service description or by the personal shopper.

So from the very first experience I received I was disappointed. What happened didn't fulfill supply and professionalism component. Instead of being a service to smooth the journey and foster loyalty it made me even more sceptical about 24S.


I contacted my personal shopper a few more times. Most of the time, he didn't bother to reply or replied only partially. Jeans? Still waiting for an answer:)


The last time I tried to reach the personal shopper were regarding their concierge edition, which I receive weekly as a VIC. The email offers a selection of what's new from brands, some of which are not displayed on 24S (even Chanel) and include categories like furniture and lifestyle items. The idea is amazing, the presentation was slightly poor — starting from missing name time to time.



Still, because of editions like this, I learned about a new lifestyle brand I loved, and now it is available at 2Jour Concierge.


So in one of such editions there was a limited edition bracelet by LVMH-owned Tiffany & Co.



The same day I send an e-mail asking about the price. And guess what? No answer.

The end of the story. In such an easy manner, with a service that had the intention to foster loyalty and grow sales, 24S lost me as a customer. It failed due to a lack of supply (even of LVMH items) and professionalism. The third stage was not even reached. What could have been used as a great tool to test the ground for a one-of-a-kind VIC service with enormous growth opportunities was instead the greatest disappointment.

Summary


The LVMH-owned 24S experience, while making me a disappointed customer, validated the concept of a new way to engage with VICs, which I had considered for a while. If built with expertise, it can become a powerful tool in enhancing the overall customer experience and achieving new targets.


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