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How Luxury Retailers Can Recession Proof Their Business

Street view with a red sports car in the foreground, other vehicles, and a business building with a neon "craft" sign.

Double-digit inflation is already eroding consumer purchasing power, while fear of a recession makes people think twice about spending on higher-ticket items.

Even when those products are must-haves and not nice-to-haves, the economic environment makes these necessary purchases feel like higher-stakes decisions.

Consumers are less likely to buy items sight unseen and more likely to do extensive research before making a significant purchase. However, that doesn't mean that consumers are more likely to head into stores to see products and have their questions answered. The COVID-19 pandemic changed consumer shopping habits forever, and most retailers are closing stores, not opening them, due to high costs and staffing shortages.

So… what's a brand to do in this tricky environment? Here are four practical and easy tips to consider right now.

Create more opportunities for customers to see products without expanding your retail footprint.

Chasing foot traffic through retail locations in popular malls or highly transited streets is an expensive proposition and a losing one – especially now. Instead, consider opening a so-called dark store for online customers only. Because customer visits are virtual instead of in-person, you can open this dark store in a relatively inexpensive location and then use live HD video to create a shopping experience optimized for online customers who need to learn more about a product before purchasing. (HP has a dark store near Barcelona that serves customers worldwide!)

Leverage and amplify your top salespeople and product experts' impact (and sales!).

Do you wish to clone some of your top salespeople and product experts? While this is not yet a possibility outside of science fiction movies, there is a lot you can do to expand your reach and drive sales. Start by having them serve as product experts in your dark store via live video instead of limiting their scope to a particular retail location. That way, they can drive sales across geographies and time zones instead of being limited to serving customers in one store. (Some companies are even letting these product experts work and broadcast from their homes. That's one way to retain top talent!)

Support customers' need for more product insights and information before purchasing.

You probably already have lots of information online for customers eager to research your product and compare it to others. However, nothing beats the guidance of a trusted product expert who can demonstrate how a product is used, answer questions, and recommend alternatives. You probably already have in-house product experts and sales people who are skilled at doing just that. Now it's time to have them do what they do best via live video. Use them both to broadcast product demos and information sessions online and to provide one-on-one product guidance via video to online shoppers.

Get more out of your in-store staff.

Some retailers are turning their existing stores into part-time studios and letting their staff serve both retail customers and customers online. That means that their in-house experts can help online shoppers when the store is near-empty or even after it is closed. There are more opportunities for selling when you aren't just relying on foot traffic.

In short, you can use live commerce to recession-proof (and future-proof) your business by turning your stores into studios turning your staff into stars. Investing in the live video doesn't mean investing in studios and fancy production companies. All you need is a smartphone, an app, and a headset, and you're good to go.

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