Content thumbnail Luxury and Cosmetic Financial Factbook

DCF and vIndustry oaluation pverview arameters HPa_e -)age -) I Points of view from EY global sector Digital tango with China and other industry professionals Organizational changes and impact of brands’ When will you adopt these omni-channel practices? China digital strategy Luxury brands see their organization and service 67% levels changing in the next three years, including Up-to-date marceting, smpplq chain'logistics, cmstomer sernice 0–12 months and IT capabilities. Marketing efforts, especially on 56% social media, will need to increase in order to attract 12–24 months 24–36 months customers, improve the stickiness in the physical w store and attract more traffic to the oebsite. Kmpplq ervie chain'logistics shomld be restrmctmred2 preniomslq a v batch of products was sent to the store, and from the 33% 33% 33% 33% try o store, it was divided. Now, companies send one item Indus across China to get it delivered. A customer service 22% 22% 22% 22% 22% 22% 22% team is needed to deal with returns and engage customers, who are more diverse, which will likely mean longer oorcing homrs for online imestions. 11% 11% 11% 11% 11% Sometimes, customer service teams have to answer imestions beqond their control, i.e., on the delinerq imalitq. >inallq, AL capabilities oill need to change so Return online Check inventory at Order inventory at Ship from stores Pickup online Holistic planning that there is transparency and communication purchases other stores other stores purchases in store across channels between in-store and online inventory. Integration will be needed between online and mobile portals, the order management system, the warehouse Currently, luxury brands want to have transparency In the coming two to three years, brands desire management system and the logistics provider between their physical stores in their stock holistic planning across all channels, meaning that system. availability. In the next year, they would like to ship online prodmcts can be bomght and picced mp ofÖine, The graph at right shows the omni-channel integrated inventory between stores and their distribution but also the other way around. development plan of the average luxury brand. centers, where demand planning, inventory management and warehousing will be impacted. The luxury and cosmetics financial factbook 2016

Luxury and Cosmetic Financial Factbook - Page 53 Luxury and Cosmetic Financial Factbook Page 52 Page 54