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5 success factors when selling luxury goods


When starting a luxury retail business, there for very specific elements to consider that will affect your success. Here are the top five factors to keep in mind.

1. Location

The right location is extremely important for all retail operations. This is no exception to a luxury items retailer. While the business may develop into a "destination retailer" not depended on street traffic, the right location continues to be the number one priority.

2. Targeting the right customer/Advertising/Building traffic

Once a business has the right location, it must insure it is targeting and attracting the right customer/shopper to the store. Advertising must be effective and consistent to insure a steady flow of prospect and client traffic to the store.

3. Store layout

Store layout must not be "me too" but should preferably be creative and in line with the overall retailing strategy. Is the store attractive to the type of clientele we are targeting?

4. Merchandise mix

The merchandise mix must be in line with the retailing strategy and the type of customer we are targeting. Because this is a start-up, frequent updates and reviews to the merchandise mix should be undertaken every quarter to insure that performance is on target and that merchandise mix is optimum. No matter how good the planning was, updates and revisions are needed. This is particularly important for luxury retailers.

5. Customer service

Because this is a "luxury retailer", customer service must be superb and impeccable, as you will probably be dealing with a "demanding clientele".