In the interview, Satyaki Banerjee, COO at LUXASIA emphasized the continued relevance of brick-and-mortar stores even as the e-commerce share of total revenue is expected to rise in the coming years.
“… the majority of sales is still likely to come from physical retail stores. Next year and the year after that, and for the foreseeable future. So do I think we will reach a point where shopping will completely cease to exist in physical bricks and mortar locations? No, I do not feel that is what will happen.“
Satyaki highlights three reasons why this is so:
- The tactile nature of experiencing beauty products in the flesh – customers desire to touch, feel, and apply products on the spot while shopping. While delivery of samples to the consumers’ doorstep may partially mitigate this, it is not the same.
- A complete experience of luxury retail is difficult to replicate online – the exquisite shopping experience in a luxury boutique, combined with personalized customer service, delivered with the human touch.
- Lastly, the social element that is integral to going out, shopping, and buying products and services also cannot be overlooked. On a related note, we expect social commerce to explode exponentially across Asia Pacific.
However, Satyaki does note that there will likely be a further, significant shift towards e-commerce in the coming years which can be a double-edged sword – a huge opportunity for or threat to brands today, depending on how brands choose to pivot and reposition themselves to attract current and new consumers.
He highlights that consumers’ tastes and preferences are changing rapidly, which is why brands need to decide how they ought to keep up with and engage consumers, perhaps even taking a proactive role in shaping consumers’ preferences. In conclusion, LUXASIA stands ready to harness the relentless evolution of eCommerce in Asia Pacific, leverage its organizational agility and digital competencies to full advantage, and leap bravely into the bright omnichannel future.
(Article co-written with LUXASIA. We would like to thank Mr Satyaki Banerjee for taking the time to answer our questions. You can connect with him on LinkedIn here and keep up to date with LUXASIA’s future developments.)
About eTail Asia
eTail Asia is the event for retailers that want world-class eCommerce and an opportunity to benchmark your operation against the best in Asia. For over 20 years, eTail has brought together retail innovators to hear inspirational tactical content paired with curated networking.
LUXASIA is the leading beauty omni-distribution platform in Asia Pacific. It enables more than 120 of the world’s finest luxury beauty brands to reach and delight consumers in 15 markets, through the largest omnichannel network spanning retail, eCommerce, and social commerce.