Luxury Retail represents everything exclusive, if not unique. The high-end segment of the retail industry is distinguished by its high quality of goods and comes with a heavier price tag compared to the regular mass market pricing. Although the luxury retail players are an elite few with a highly traditionalistic approach to business, we cannot escape the fact that technology has found its way to every niche. The exclusive couture clothing line, perfumes, bags, lifestyle products, watches, and jewelry take up the lion's share of the Luxury Retail marketplace.

Ease of digital payments is not limited to the retail industry's mass market; the exclusivity and uniqueness of the high-end goods must be coupled with a seamless payment experience. According to Statista, the revenue in luxury goods market worldwide amounts to USD (US Dollar) 312.60 bn in 2022. India is an emerging market for the luxury retail with increasing disposable income in the developing economy. Let us understand 4 distinctive ways Luxury Retail segment can capitalize on customer inertia along with providing a seamless Payment experience for their customers.

Luxury Retail distinguishes itself from the premium retail market segment with the exclusivity it offers to a select few. Affordability of high-end goods has not been a pre-requisite for the niche segment. According to Bain & Company, Younger demographics are more comfortable with making purchases online than in-store and they show increased interest in purchasing without accrual of debt or fee that accompanies credit card payment.

Online Payment Solutions that support recurring payments without an additional fee charged for purchase has gained popularity in the Retail industry at large. The flexibility offered by digital payments has infused growth into the burgeoning Luxury Retail segment as it expands its presence in developing nations with increasing spending capacity of individuals.

The Luxury Retail segment worldwide thrives on the customer’s Brand Loyalty. Unlike mass- market brand strategy, this niche segment succeeds by engaging in customer loyalty programs and targeted brand engagement. Seamless customer engagement in Brick & Mortar stores to digital outlets are the key to realizing the returns for the intense brand engagement of Luxury Retail segment.

The unified customer experience for seamless payments can be facilitated by a simple analogous system- POS (Point of Sale) terminal placed conveniently in the Brick & Mortar stores for in-store shoppers coupled with a secure payment gateway that accepts multiple modes of payment. This ensures a harmonious flow of payment experience for the customer. This in turn reflects directly on the brand’s image and its adaptability to modern times.

Customer Inertia remains an unassailable asset for the Luxury Retail Segment. To explain the concept in simple terms, a loyal customer tends to purchase a product for a higher price from the same brand even when other superior products exist in the marketplace.This specific customer behavior is unique to niche markets such as the Luxury Retail Segment.

Rewarding Customer Inertia is a proven way to ensure Brand Loyalty. Again, capturing the purchase of the same customer across various locations that straddle brick & mortar stores and digital stores requires a seamless analytical merchant dashboard that provides all the required information with accuracy. Use of Secure Payment Gateway aids in more than just generating a consistent ROI (Return on Investment) and payment experience for the customer. It helps with capitalizing the Customer Inertia that is generated by the Luxury Retail Segment through consistent marketing efforts.

The Luxury Retail Segment relies on quality and exclusivity, whereas the mass market depends on the volume of sales. The cart abandonment rate takes a higher toll on the luxury retail segment as it relies majorly on the purchase to realize an ROI. The seamless experience of the unified customer experience is brought to an abrupt end caused by something as fickle as a ‘server downtime.’

The unified customer experience with seamless payment services can be facilitated by using Multiple Payment Gateways instead of relying solely on a Single Payment Gateway. This process ensures reducing the cart abandonment rate and improves the efficiency of the Purchase experience for the customer contributing to a positive purchase experience that can in turn be capitalized into Brand Loyalty.