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Opinion / Luxury brands need to rethink delivery in the digital age, because whether you’re buying an Hermès handbag or designer furniture, the ‘last mile’ matters

JD.com’s luxury delivery service is one of a tiny number of companies making the “last mile” count when it comes to digital shopping. Photo: JD.com

This article is part of STYLE’s Inside Luxury column.

Traditionally, most luxury products were sold out of physical stores – from luxury boutiques and flagships, to high-end car dealerships and art galleries. But as we all know by now, the pandemic has only accelerated the trend towards online and digital sales, and in a digital world, the rules of the game change dramatically.
Online shopping is here to stay: brands need to start getting it right. Photo: Unsplash

What many brands omit is that the brand experience needs to be seamless in all aspects, including the delivery. This is where many fail. I recently ordered a set of luxury chaise longues for my outdoor pool area. And while the pieces from the Spanish high-end furniture brand Vondom were stunning – the last mile wasn’t.

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I was promised the delivery on a Friday during a specific time slot in the morning. I cleared my calendar, did not accept any external meetings and waited for hours. By early afternoon, I became suspicious and called the customer service of the shipping company. They told me that their computer systems were down and all delivery appointments that were made online (mine was one of them) were cancelled. I lost half of a workday, just to get a grumpy “customer service representative” on the line, who told me she could not help, and I should try again on Monday.

Long story short, the items were delivered several days later, but the delivery staff refused to bring them to the dedicated spaces, unpack them, and take the packing material back. While all other points in the digital purchasing process were convenient and flawless, the “last mile” was a catastrophe. The problem: we always remember the first and last impression. And if the last impression is terrible, the entire brand experience is tainted.

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JD.com delivery staff work to sort parcels in Beijing after last year’s 11.11 Singles' Day shopping festival. Photo: Reuters

This is just one example of many that I am sure all of you reading this column have experienced yourself. Sometimes the packaging may arrive damaged. In other cases the delivery staff are late, unfriendly, or both. In a best case, the last mile is acceptable and does not destroy the luxury brand perception.

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However, what I have practically never experienced was to be positively delighted, surprised and blown away during the last mile. This is where luxury brands leave opportunities in extreme value creation and differentiation untapped. As an example, the furniture brand could have a brand specialist accompanying the delivery and establishing a personal contact with me. The price of the items would certainly warrant the time investment. During such a visit, the specialist could have reinforced the brand storytelling, while also learning more about me. In a good example, the brand could have established a lifelong customer relationship and added a personal note to an otherwise digital process. In my experience, the reality destroys value rather than creating it.

These are not just missed opportunities, but aspects that endanger many luxury brands going forward, as digital is becoming the norm and not the exception. Some luxury retailers, such as Net-a-Porter, have been early innovators in the field, with the famous signature box and a personal white-glove delivery in certain areas. JD.com introduced a white glove service performed by specially trained, handsome staff in tailored suits for their luxury service in some Chinese metropolitan areas. However, apart from a few examples, the last mile is still very much left to chance.
JD.com’s luxury delivery service. Photo: JD.com

And since when it comes to luxury every detail matters, this omission can be deadly. Creating extreme value by establishing an end-to-end customer experience for online shoppers – that includes the entire digital journey and all its physical touchpoints – will be the luxury battleground of the near future. It’s a call to action for many luxury brands across categories.

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Fashion

Whether its bad packaging, rude customer service or a lack of personal touch, poor online shopping experiences are a wasted opportunity for luxury brands to stand out