Retail-Performance-Asia-5_web-version

issue #5
RETAIL
PERFORMANCE
ASIA
Luxury Brands
& Digital
Adoption
Where will
Chinese tourists buy
this fall winter?
Copyright © 2016 ACDL All rights reserved
Consumer insights:
Luxury in-store
benchmark study
LUXURY MARKET IN CHINA :
Satisfying sophisticated
and always connected
clients

Retail Performance Asia │ 2016 edition │ Texts & Analysis copyright © ACDL International 2016 3
CONTENT
Luxury Brands & Digital Adoption : The Pursuit Of A Seamless Experience
AuCoeurDuLuxe
Case studies
Where will Chinese tourists buy this fall/winter?
Consumer insights: Luxury in-store benchmark study
Happening Now
AuCoeurDuLuxe Surveys
AuCoeurDuLuxe Publications
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Magazine Details: RETAIL PERFORMANCE ASIA Issue #5- 2016
Copyright (c) AuCoeurDuLuxe International. All rights reserved
MAGAZINE CONTRIBUTORS
EDITORS
Chief Editor : Laurence Ouaknine, President of AuCoeurDuLuxe
AuCoeurDuLuxe Team : Christele Disser, Alexia Medlock, Rong Rong Zhang
Art Director : Clara Choi
Picture sources : ACDL source, Shutterstock, 123rf
CONTACT DETAILS
E: inquiry@acdluxe.com
W: www.acdluxe.com
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from the Editor
After the 2015 luxury market slowdown and in light of the latest
market trends in Asia – e.g. Korean beauty brands booming,
millennial’s’ sophisticated expectations and the mandatory digital
integration - 2016 was likely to be rich in challenges. Without
doubt, this forecast turned out to be true and was amplified by
diverse social and economic factors multiple terrorist attacks,
Chinese travelers’ new favorite destinations and the unexpected
Brexit vote. These factors characterized 2016 and did not
alleviate the luxury market.
In this evolving and difficult market environment, to maintain
their level of sales, luxury brands strived to uplift their shopping
experience. Offering a seamless and unique experience in-store
was their common goal. To achieve it, diverse actions have been
carried out. More and more brands offer ‘Click and Collect’ option,
and they also work on improving their CRM services but also
enhance their staff’s career path with new and adapted training
content. Today, eLearning stands as an alternative training
solution that enables brands to transfer knowledge in a short
amount of time to a large number of staff with self-paced learning.
AuCoeurDuLuxe, as a leading training group in Asia, does not
only support luxury brands in building learning and development
programs but also helps luxury brands to build online content
to their existing training. This year, the AuCoeurDuLuxe team
is proud to have delivered 50 eLearning modules and 2500
trainings.
In this edition of Retail Performance Asia, AuCoeurDuLuxe
addresses the current trends of the luxury market and the main
events that have impacted it. By leveraging our knowledge in
retail, we explore solutions to improve the shopping experience
and shrink the gap between shoppers’ expectations and their
current experience in-store.
Laurence Ouaknine
4 Retail Performance Asia │ 2016 edition │ Texts & Analysis copyright © ACDL International 2016
Luxury Brands & Digital Adoption:
The Pursuit Of A
Seamless Shopping
Experience
LUXURY BRANDS & DIGITAL ADOPTION

6 Retail Performance Asia │ 2016 edition │ Texts & Analysis copyright © ACDL International 2016 Retail Performance Asia │ 2016 edition │ Texts & Analysis copyright © ACDL International 2016 7
“ For Chinese Consumers, Before Making
Luxury Purchases, They Would Be
Influenced By An Average Of 13 Different
Touch Points, Including 7 Online Touch
Points.2
”
INTRODUCTION
With a second year of contracted growth for luxury sales in
Mainland China, luxury brands are eager to seek a way out of
the woods. Adoption of digital is believed to be one of the new
sources of growth due to the transformation of how, when and
where the consumer can purchase luxury goods. Although
still dominant, China’s store-based luxury retailing has been
continuously losing share to internet retailing, which grew 20%
in 2015 and reached 5% of the total market share, outpacing
the overall market by nearly three times. Besides e-tailing, digital
touch points such as social media and mobile have embedded
into the shopping journey, especially for tech-savvy Chinese
luxury consumers – Generations Y and Z1. These always-
connected groups rely heavily on the internet to do product
research and make purchases. According to a study, 3 out of 4
luxury purchases are influenced by what consumers see online2.
Well-informed and always looking for updated and personalized
information, Chinese consumers have high expectations about
their digital experience with brands across every touch point.
As brands have clearly realized the importance of a digital
presence and a seamless Omni-channel experience, they are
eyeing the digital wave with an increasing marketing budget.
However, do their efforts really live up to the expectations of
consumers? Willing to provide an insightful answer, ACDL
launched a gap assessment of the digital competencies of 100+
luxury brands’ operating in Mainland China (see Exhibit 1).
1 Generation Y is commonly defined with birth years from 1980-1990. Generation Z is mostly defined with birth years after 1990.
2 McKinsey, 2015 “Digital Luxury Experience Observatory”
Reference: AuCoeurDuLuxe, Luxury brands & Digital adoption: the pursuit of a seamless
shopping experience
*Multi-brands: Refers to brands with various business categories such as ready-to-wear,
watch & jewelry and cosmetics etc.
Exhibit 1 - Survey Methodology
WINTER 2015 - SPRING 2016
GLOSSARY
1. Website
2. M-Site
3. Ecommerce
4. Mcommerce
5. Weibo
6. Wechat
E-tailing
Online commerce including selling on mobile site
& mobile app.
M-site
Mobile optimized brand official website.
Mcommerce
Brand-operated mobile-optimized commerce site.
Excluding third party platforms (e.g. Amazon,
Taobao).
Weibo
China-based microblog, one of the most popular
social media sites in Mainland China.
Wechat
One of the largest standalone mobile text and
voice messaging app in Mainland China, by
monthly active users.
O2O
Online-to-offline commerce that draw customers
from online channels to physical stores.
In Total 108 Luxury Brands
Mainland China
Market
Ready-To-Wear
(30 Brands)
Multi-Brands*
(16 Brands)
Cosmetics &
Fragrance
(32 Brands)
Watch &
Jewelry
(30 Brands)
SURVEY OBJECTIVES
Recommend luxury brands on how to take
advantage of digital trends.
Identify the best practices,
Provide a big picture of the digital market of
luxury brands in Mainland China,
01
02
03
Conventionally, luxury brands were quite reluctant towards digital
adoption. However, in terms of digital presence, the tested luxury
brands in our study were remarkably proactive. 60% of them had
presence in five or more digital touch points. As we can expect, all
tested brands had official websites. Nevertheless, some brands
still need to adapt their official websites to provide the local
language - only 65% of tested brands had a full website version
in Chinese. Social media was well established with a majority of
brands (94%) managing an official Weibo account and a WeChat
account (89%). E-tailing capability (including mobile commerce)
and mobile apps were relatively lagging behind (see Exhibit 2).
When breaking down to category-level, Multi-brand and
Cosmetics & Fragrance were particularly dedicated to developing
digital competencies– respectively 75% and 72% of the brands
within the category presented at least five digital touch points
(see Exhibit 3).
1. COMMENDABLE PRESENCE OF LUXURY
BRANDS ON DIGITAL LANDSCAPE
shopping experience
Question: Does the brand have presence on the following digital touch points?
Exhibit 2 - Luxury brand presence in digital
42%
37%
Etailing
Mobile App
100%
Official website
94%
Weibo
89%
Wechat
84%
Optimized
Msite

Multi-Brands
Cosmetics & Fragrance
Ready-To-Wear
Watch & Jewelry
shopping experience
Average score on each touch point by category
Exhibit 4 – Overall performance on each touch point by category
Your approach must be inherently mobile,
with the goal of becoming part of their
(Generation Z in China) digital lifestyle.
This means offering engaging, meaningful
and inspirational content as well as distinct
experiences.3
”
3 RTG Consulting, 2016 “China Generation Z”
Compared to other categories, Watch & Jewelry brands in general
were more reluctant in dipping their toes into digital waters – e.g.
only 7% of the tested Watch & Jewelry brands offered online
shopping options. However, the brand website often impressed
its viewers with editorial content highlighting the brand’s heritage
and values – 90% of tested Watch & Jewelry brands featured
brand history with a strong focus on their craftsmanship.
Editorial content is one of the best opportunities to allow
consumers to “enter into the world of the brand”, and inspiring
content helps to build customer engagement and enhance brand
loyalty. In a study of China’s Generation Z3, the future main
purchasing force of luxury goods, the young segment is expecting
brands to “build genuine human connections” rather than simply
sell products. It is evident that Chinese consumers are gradually
seeing luxury not only as material goods but increasingly as an
experience and lifestyle.
Weibo
WeChat
Office
Website
Ecommerce
Mobile
Commerce
Mobile
App
Mobile
Site
“
Exhibit 6 – General impression towards mobile site
shopping experience
“Do you feel you have had a luxurious
mobile site experience?
”
27% 23%
50%
Average
To Step Up Their Game In Mainland China,
Brands Still Need To Develop Capabilities
In Mobile Touch Points.
Exhibit 7 - Brands’ digital competencies on mobile touch points
shopping experience
Question: Does the brand have a mobile app/optimized mobile site/in-app shop?
84%
33%
23%
Mobile site only
37%
E-shop in
Mobile App
Mobile App only
Mobile site & App
China is a “mobile-first” country when it comes to digital access,
particularly for Generations Y & Z who practically live and breathe
mobile technology. A study revealed that in 2015, 45% of China’s
luxury shoppers buy over half of their luxury goods online, and
mobile is the most commonly used device for daily retail visits4.
At the same time, the on-the-go Chinese consumers are also
looking for entertaining content and user-friendly designs on the
mobile screen. However, according to our study, when it comes
to mobile-optimized experiences, brands’ insufficiencies lay bare.
For the luxury brands we tested, mobile experience was mostly
interpreted as “average” in terms of luxurious feeling. 23% of
respondents rated the experience as “not at all” luxurious while
only 27% of them were satisfied (see Exhibit 6). Reasons were
commonly related to mobile-optimized user experience – e.g.
mobile site did not fit onto device screen, hard to find information,
insufficient store locator, etc. Apart from M-site, mobile apps also
highlighted the front runner in the digital competition. Overall,
about 37% of the tested brands had mobile apps, which were
mostly used for keeping customers updated – new arrivals, offers,
and brand/company events. We have seen some brands driving
customer foot traffic from online to offline by offering mobile
coupons that can only be redeemed in brick-and-mortars. For
the click-and-buy consumers, most brands are not ready to offer
an in-app shopping option as yet - 23% of the apps embedded
e-shops.
3. MOBILE EXPERIENCE TO BE ELEVATED
shopping experience
eMAG features Fashion,
Sports, Art and Design
sections.
Chanel News updated regularly
showing the brand/company
latest news, as well as industry
trends and fashion show display
Tips on how to mix
& match sneakers
Exhibit 5 – Case study HUGO BOSS & CHANEL Editorials on WeChat
4 Luxury Society, 2015 “Are you reaching the global Chinese luxury consumers?”
Cosmetics & Fragrance had the best balance of digital capabilities
across the touch points, and figured most prominently in e-tailing
(including mobile commerce) and WeChat account management.
Multi-brands was outstanding in telling full brand stories and
editorial content, especially via WeChat. Watch & Jewelry, as we
expected, was most reluctant in embracing digital and E-tailing
(see Exhibit 4). Besides wide adoption of E-tailing, beauty brands
were comparatively more present in social media, pioneering
optimization of WeChat’s unique features such as one-to-one
customer service, in-app online shopping, and loyalty program
management (see detailed analysis in Finding 5). To Chinese
consumers, WeChat is more than a messaging app. The rich
potential of the platform’s vast functionality and its large user
base make it an essential key touch point that luxury brands
need to pay attention to. For Multi-brands, the focus was more
on brand story-telling through rich visual and editorial content
on their websites and WeChat. On one hand, multi-brands’
websites created truly positive impressions and were described
as “beautiful”, “personalized” and “engaging”. On the other
hand, 24% of their WeChat accounts dedicated a section on the
homepage for the brand’s E-magazine, compared with 4% to
9% for other categories. For instance, the e-magazine of HUGO
BOSS – eMAG featured content ranging from fashion news, art
and design to mix & match tips. Chanel also kept its followers
updated with its Chanel News (see Exhibit 5).
2. DIFFERENT APPROACH AND MATURITY PER
CATEGORY
Slowly But Surely, Luxury Brands Are
Catching Up With The Digital Wave And
Are Shifting Their Approach To Interact
With Consumers Online And Create
Engagement.
shopping experience
Average score on each touch point by category
Exhibit 3 – Category breakdown Brand presence with 5+ digital touch points
47%Ready-To-Wear (30 Brands)
75%Multi-Brands* (16 Brands)
72%Cosmetics & Fragrance (32 Brands)
53%Watch & Jewelry (30 Brands)

Ecommerce remains as a weak spot across categories except
for Cosmetics & Fragrance. 41% of the tested brands had self-
operated Ecommerce sites5, among which, the Watch &Jewelry
category is significantly falling behind (see Exhibit 8).
Besides the basic elements of an Ecommerce site such as
product display and shipping options, we specifically evaluated
the localization of payment methods, as Chinese consumers
are more used to local payments such as Unionpay6. Mobile
pay is also rapidly gaining wider acceptance among tech-savvy
consumers. Across brands, Alipay and Unionpay were the two
most commonly adopted local payment methods – 69% offered
Alipay, 64% Unionpay, while 47% offered VISA/MasterCard
etc. In addition, some brands also accepted WeChat pay and
other Chinese local payment methods. Although 96% of the
tested brands gave reassuring information constantly during the
shopping process, including FAQ on payment & delivery, refund
policy and customer support via hotline, some customers were
not entirely assured. About half of them felt the online experience
could be more seamless and reassuring. An interesting finding
drew our attention: when brands provide real-time assistance
such as Live Chat, the overall impression of the shopping
experience was dramatically elevated – among those brands
offering a personalized consultation service via live chat, 90% of
them managed to put customers at ease (see Exhibit 9). Those
brands winning over customers performed strongly in providing
easy check-out, constant reassuring information and customer
support (hotline & online chatting) throughout the online shopping
experience.
4. ECOMMERCE STILL A WEAK SPOT EXCEPT FOR
COSMETICS
shopping experience
Question: Did you find the online buying process seamless & reassuring?
Exhibit 8 – E-tailing penetration by category
shopping experience
“I am quite happy to have a luxurious online
experience...it has personalized service such as
online consultation. I can ask questions and a
personal consultant answers instantly and provides
recommerndation for me.
”
Exhibit 9 – Reassuring - customer support via Live Chat vs. Hotline
Multi-BrandsCosmetics &
Fragrance
Ready-To-
Wear
Watch &
Jewelry
66%
50%
44%
7%
“Does the brand have a self-operated
online shopping website ?
”
90%
32%
Featured Live Chat
Only Hotline
Rated as Good/Impressive in reassuring experience
5 Data includes brand-operated commerce site on PC. It does not include Ecommerce site operated by the third party such as Amazon, and mobile commerce site.
6 Alipay and Unionpay are the two most adopted local payment methods in Mainland China.
Exhibit 12 – Case Study - Clarins’ WeChat Account
Clarins Membership Club –
A separate WeChat account
that enhance customer loyalty
by establishing personalized
relationship with customers.
One-to-one consultation is
available – questions are
answered immediately after
sending.
O2O initiatives include in-store
consultation reservation and
samples collections.
shopping experience
Question: What can be found on brand’s homepage?
The Internet and smartphones not only gear Chinese luxury
consumers to go online, but also empower them to express their
own words towards fashion, anytime and anywhere. Without
a doubt, social media is playing an increasingly critical role
throughout the luxury shopping journey. As one of the most
influential social media platforms in China, Weibo still dominated
in the number of brands in which it has presence (94% of tested
brands, see Exhibit 2) but WeChat is quickly catching up (84%)
and with a rising influence in engaging consumers (see Exhibit
10). WeChat provides a more private but tailored interaction
impression. As a result, consumers tend to be more interested in
subscribing to WeChat than to Weibo.
The industry has clearly realized the importance of Wechat in
winning over customers. However, the majority of brands are not
taking full advantage of it, especially the WeChat-only features,
such as in-app E-shop, loyalty programs management, one-to-
one customer service, etc. For most brands, WeChat accounts
were used for product and brand information display. We found
72% of the brands featured an “About the Brand” section on
homepages, and over half included their latest collection/whole
series. Geolocation service was also a must-have function, with
80% of the brands offering an in-app store locator (see Exhibit
11). To be well ahead of their rivals, brands are urged to develop
differentiated capabilities such as a loyalty program (28% of
the brands), O2O promotions (e.g. reserve in-store service
via WeChat), in-app customer service and e-shop. Even so,
we noticed several avant-garde brands proactively developing
5. WEIBO’S PRESENCE VS. WECHAT’S
ENGAGEMENT
Exhibit 11 – Features on WeChat homepage
shopping experience
Question: What can be found on brand’s homepage?
Exhibit 10 – Engagement- WeChat vs. Weibo
shopping experience
BASIC
COMPETENCIES
Store locator 80% Membership
management 28%
About the brand 72%
Brand/Company
news 28%
Latest collection 66%
Reservation
service 16%Whole series 52%
eCommerce 9%Link to official
website 43%
eMagazine 9%
Star Product 41%
DIFFERENTIATORS
“After visiting the social media account
are you more interested in subscribing?
”
61% 36%
WEIBOWECHAT
WeChat competencies. On Clarins’ WeChat homepage, the
brand embedded links that directed users to the Mcommerce
site. The beauty brand also made a big play in loyalty programs
by operating a separate WeChat account for membership
management (see Exhibit 12). It featured membership
management, live chat customer service, members-only deals,
and online to offline initiatives (e.g. samples to pick up in physical
stores).

Although they display a wide presence on digital touch points,
brands have not fully met customers’ expectations of a seamless
online experience across these touch points. With 81% of the
tested brands linking their website with social media platforms,
a much lower percentage link social media back to the official
website. For instance, on their WeChat homepages, only 43% of
the brands have links to their official websites. Even fewer brands
attempt to direct customers to e-tailing channels (9%). Although
Watch & Jewelry is relatively less mature in digital competencies,
Mont Blanc has set the bar high for its peer competitors and
other luxury categories. The brand is the vanguard not only in
digital presence but also Omni-channel integration. Mont Blanc
was outstanding in optimization of the favorite Chinese channel
– mobile. The brand has a well-adapted mobile site featuring an
e-shop and mobile apps. Mont Blanc proactively tries to provide
a seamless connection across touch points. Consumers can
access the Mcommerce site via the brand’s WeChat account.
6. A LACK OF SEAMLESS OMNI-CHANNEL
INTEGRATION TO WOW CONSUMERS
Social media accounts can be found on the official website
and m-site. Online-to-offline efforts were also commendable.
For instance, followers can reserve boutique appointment on
Mont Blanc’s WeChat account. The brand’s website also allows
customers to view stock availability based on location (see
Exhibit 13).
Besides making efforts in connecting different touch points for
customers to “shop anywhere and anytime”, offering a sensory
experience consistent with Brick-and mortars could also help
brands stand out. In the efforts of driving foot traffic from online to
offline, brands also need to offer a consistent in-store luxurious
shopping experience to retain the customer.
Reference: AuCoeurDuLuxe, Luxury brands & Digital adoption: the pursuit of a seamless shopping experience
Exhibit 13 – Case Study Mont Blanc Omni-Channel Integration
Mont Blanc
WeChat Account
Mont Blanc
Website
Local payment
Live Chat
customer support
WeChat Store
Official
Mcommerce site
QR code for
brand’s WeChat
account
Link to Social
Media & Mobile
App
Location-based
store locator
Omni-reach link to
M-commerce
020: Boutique
appointment
reservation
Editorial workshop
about watch
craftsmanship
Omni-reach:
• Social media:
Youku &
Douban
• E-commerce
• Limited edition
information
Customer service
Store location
information
Omni-reach
View invertory
online of the closest
store
Omni reach to
social media
Weibo, Youku,
Douban
Editional emphasis
on craftsmanship
& heritage with
engaging stories
Hotline & store
locator on top of
the navigation bar
Editional emphasis
Omni reach to
social media
Mobile app
focus on 020
(scan QR codes for
promotion, new
arrivals, etc.)
Omni reach
social media &
mobile app
Personalization
link-sell
Local payment:
Alipay
Delivery option:
customized
shipping date
based on shoppers’
convenience
Perfect duplicate
of PC website with
mobile-optimized
features
Omni reach social
media (WeChat) &
mobile app
Hotline & Store
locator on top of
the navigation bar
Personalization:
link-sell
Wechat Weibo Website M-site Ecommerce Mcommerce

Digital enables brands to directly interact with current and
potential customers. It embodies a wide range of business
opportunities for the coming years. According to a report by
KPMG, “half of China’s domestic luxury consumption will be
generated online by 2020”. Hence, new technologies are a reality
that luxury brands have to deal with. Integrating their offline and
online sales channels and designing the best support to connect
with customers through digital technology is essential to generate
engagement and loyalty.
Based on ACDL’s study, we identified key strategies to enhance
brands’ digital competencies and drive sales in China. In
summary, these are:
• Brands should widen their digital presence, yet strategically
leverage the primary functions of each touch point. We
suggest brands firstly develop E-tailing capabilities in order
to catch up with the “always-on” Chinese luxury consumers,
and provide them with a smooth and reassuring shopping
experience. Enhance user-friendly functions and emphasize
driving foot traffic to physical stores in Mobile-site and Mobile
commerce. Utilize brand website as the main touch point
to tell a complete brand story. Last but not least, harness
the power of social media - Weibo and WeChat - as key
channels to engage consumers and enhance brand loyalty.
RECOMMENDATIONS:
All Key Players Know Omni-Channel
Experience And Operations Are Where Retail
(Not Only Limited To Luxury) Is Heading.
Brands Are Suggested To Quickly Bridge The
Gap Between Online And In-Store Experience.
• Nowadays, the sophisticated Chinese consumer expects
more in regards to emotional factors such as feeling like a
VIP and immersing themselves into the world of the brand.
To attract and retain them, brands need to highlight the
human factor - editorial content with strong brand identity,
lifestyle focus, personalization in both product and service,
in store and online.
• In addition to optimizing individual touch points, brands also
need to integrate various touch points to realize a smooth
Omni-channel experience. Linking consumers seamlessly
to the brand’s offline channels, no matter if it is the e-tailing
site or WeChat account, may avoid diluting the luxury image
and enable brands to supervise the kind of messages it
communicates with customers.
AuCoeurDuLuxe is French for the “heart of luxury” and is what we believe is at the core of luxury business. Nothing epitomizes
the industry’s spirit and essence more than the human factor, whether it is the relationship between the consumer and the brand, or
the relationship between the brand and its ambassador. The drive to exceed client expectations is synonymous across luxury brands,
therefore leveraging these relationships and empowering people holds the key to success.
By leveraging every area of our retail expertise, we identify
actionable insights, craft and implement tailored solutions with
meaningful impact on sales, customer experience and front
line staff retention. Our 360 degree approach is based on 4
key steps: Analyze, Recommend, Design and Implement. We
listen to you to understand your business and your objectives.
We are specialized in end-to-end human resource solutions and
mastery of service in the retail environment from assessment of
2016 ACHIEVEMENTS
+2 500
TRAINING PROGRAMS
DELIVERED
+14 000
SURVEYS AND INTERVIEWS
CONDUCTED
+40 000
RETAIL
PROFESSIONALS TRAINED
• Mystery Shopping
• Omni-channel
• Focus group
• Qualitative interview
• In-store checking
• Employee survey
• Training content
• eLearning platform
• Bonus schemes
• Employ local trainers & certified coaches
specialized in your field
ANALYZE
the performance of your
store network
DESIGN
actionable programs to drive
your improvement
IMPLEMENT
your solutions through
training & coaching
RECOMMEND
personalized solutions for your
retail needs
MODEL FOR RETAIL
EXCELLENCE
ARDI
• Training solutions
• Human resource strategy
all factors that impact the customer’s experience, to the design
and implementation of training solutions. We ensure to provide
the best, most professional local services with international
standards. Based in Paris, Hong Kong, Shanghai and Singapore,
AuCoeurDuLuxe has subsidiaries across Asia Pacific and
Europe. Our local offices are critical to ensure a worldwide
approach with seamless control of our operations locally along
with our clients’ subsidiaries.
“ACDL helped us to reshape our training materials and make them more relevant and
practical for our staff to learn from. The training they provided on this new basis was truly
inspiring and appreciated by our sales force.
”Qeelin, Artaux Christophe, CEO
AUCOEURDULUXELUXURY BRANDS & DIGITAL ADOPTION

CASE STUDIES
CASE STUDY
Enhancing Service And Selling Capabilities Through
Shopping Experience Assessments
CASE STUDY
Finding The Right Talents Through A High Quality
Recruitment
BACKGROUND
A leading group in Premium Spirits industry was interested
in knowing their performance in selective stores and duty
free airports in Asia Pacific. The group needed to build a
comprehensive regional assessment program to improve the
sale service by evaluating the staff’s ability to sell and share their
product knowledge to different client groups.
SOLUTION & APPROACH
Understanding the Wines and Spirits group’s values and
strategic key elements to assess, ACDL designed and conducted
a customized Mystery Shopping Program in duty free airports
& downtown locations in Asia Pacific Region. Successfully
deployed in 9 countries and based on hundreds of evaluation,
ACDL delivered detailed analysis with recommendations to
maintain excellent skills in service and selling in each store,
country and at a regional level.
THE RESULT
For 2 years, ACDL has closely worked with this worldwide leading
group to provide insightful analysis highlighting key strengths
and areas of improvement in service and selling capabilities. To
fulfill the client’s needs and truly improve consumer experience,
ACDL developed e-learning modules on product knowledge and
features to continuously upgrade selling techniques by keeping
staff informed on story-telling and product specifications.
BACKGROUND
A worldwide skincare brand, known for its unique products,
claims to give access to a timeless beauty. Looking for trainers
highly specialized in skincare, the brand required specialists able
to provide and manage their beauty advisors in a very short time,
capable to deliver the brand’s training and ensure BA’s coaching
in-store. Training needs were identified but the brand was facing
a lack of headcount in Hong Kong and Mainland China, and was
trying to find alternative solutions and outsource their trainers.
SOLUTION & APPROACH
The challenge lied in immediately providing right operational
talents specialized in Skincare who could become perfect brand
ambassadors. In taking responsibility for HR consulting, training
and coaching, ACDL tailored a staff selection process in line with
the skincare brand’s values and needs. By assessing talents’
sales skills and company knowledge, ACDL selected ideal
recruits that would be fully dedicated to this partnership and able
to fulfill the expectations of the brand.
THE RESULT
ACDL elaborated a flexible, turnkey and cost effective solution
thanks to its expertise in the luxury industry and its knowledge
of the skincare market due to a diversified client portfolio. ACDL
internally manages trainers: conducts recruitment, ensures
trainings and the daily follow-up. The recruitment framework was
deployed globally to perfectly answer the brand’s evolving needs
around the world. ACDL has now 4 trainers fully dedicated to this
brand. This solution offers a short-lead time and limits legal risks
in different countries.
CASE STUDY
Reinforcing Sales Capabilities By Elaborating A New
Selling Ceremony
BACKGROUND
A luxury Watch and Jewelry brand, famous for combining
unparalleled craftsmanship, technical process and innovation,
identified the need to strengthen its sales techniques for one
precise collection towards a specific target: brides & grooms.
Willing to collaborate with an external consulting agency,
exposed to different brand strategies and experts in their market,
the brand was willing to launch a specific program, aiming to
elaborate a new training content and a unique selling ceremony
in Hong Kong to assist clients during their first purchase and
finally arouse brand loyalty.
SOLUTION & APPROACH
As weddings are usually the life event of the very first jewelry
purchase, brides and grooms embody a strategic opportunity
for the brand to build loyalty. By taking inspiration from the
brand’s culture and its competitive landscape, ACDL developed
and conducted a qualitative study in brand’s boutiques and
competitors’ stores. This survey included a Mystery Shopping
Program to assess the current selling techniques combined with
qualitative interviews led with high end Mystery shoppers. This
evaluation pointed out the weaknesses and skills to address
to reinvent the shopping experience. From these conclusions,
ACDL elaborated a complete selling ceremony dedicated to the
specific brand’s collection and its target clientele.
THE RESULT
ACDL proceeded to a train the trainer session with the training
manager of the brand, who delivers this customized training to
its sales advisors. Finally, within its tailored approach, ACDL’s
participated to transform the shopping experience into a unique
moment.

WHERE WILL CHINESE TOURISTS BUY THIS FALL WINTER?
For luxury brands, capturing Chinese tourists is crucial as they
stand as the very first source of cross-border travel spending in
the world. Last year, the number of outbound Chinese tourists
climbed to 120 million and is expected to reach 133 million in
2016. According to the consulting firm Bain & Company, mainland
Chinese account for 31% of global luxury sales and 80% of their
purchases take place abroad - from overseas trips and overseas
websites. Last May, their foreign spending achieved a year-on-
year increase of 25%, reaching US$292 billion. Chinese tourists’
overseas spending ranks first in the world. However, their habits
in acquiring luxury goods are shifting. Luxury brands need to
track these change to adapt their strategy and properly answer
their evolving expectations. Different reasons explained why
Chinese tourists’ change their way of spending.
CULTURAL EXPERIENCE OVER SHOPPING
EXPERIENCE
Enjoying a cultural experience is an influential factor in their
destination decision-making. As a consequence, cities like Hong
Kong that provide amazing shopping experiences but had not yet
developed new cultural initiatives towards tourism are losing their
appeal. Usually known as one of the top destinations for mainland
shoppers, Hong Kong witnessed a decline in Chinese tourists’
arrival since 2016. To satisfy their desire of discovering new
cultures and experiencing
new activities, Chinese
travelers expand their
horizons more than ever.
They travel more and
more to South Korea -
the number of Chinese
tourists is expected to grow by 28% in 2016 as South Korea
appealed for its relatively cheap luxury goods. In Japan, providing
new cultural experiences and diversifying their initiatives for
consumers impact positively tourism - Chinese tourists are
expected to increase by 46.2% in 2016. Europe and Australia
remain among the top destinations as they are popular shopping
destinations but also strive to offer cultural activities.
UK LEAVING THE EU
Brexit’s effect on Chinese tourists’ choice of destinations remains
unclear. On one hand, the plunge of the pound may encourage
Chinese travelers to flock to London really soon and take
advantage of the attractive exchange rate. On the other hand,
travelling halfway around the world because of a plummeting
pound may not be as appealing as it sounds since London
remains one of the most expensive places for tourists in the world
(hotels, F&B…) which would offset the savings for tourists.
Where Will
Chinese
Tourists
Buy This
Fall Winter?
E-RETAILERS BOOMING
In China, cross-border ecommerce outperforms bricks-and-
mortar shops. Online market is facing a surging demand for
luxury goods resulted from better prices, better perceived quality
and a wider range of choice compared with local retailers. Digital
shopping in China grew by more than 70% in 2015 and 40%
of China’s online consumers buy foreign goods according to
eMarketer, a digital marketing researcher. To boost the domestic
market, the Chinese government keeps trying to introduce new
regulations to encourage luxury shoppers to make their luxury
shopping at home rather than abroad. Last April, the government
introduced new fees on personal overseas orders which
generated the first week a fall of more than 60% of cross-border
e-commerce orders for pilot zones (Shenzhen, Zhengzhou,
Ningbo and Hangzhou). This new import tax regulation has been
postponed to next year, giving ecommerce retailers time to adapt
their strategy to Chinese market.
MILLENNIALS RESHAPE THE LANDSCAPE OF
LUXURY
According to GFK, Generation Y represents 73% of outbound
Chinese tourists. More sophisticated and looking for new
adventures, they purchase luxury goods not only for acquiring a
product but also to live an aspirational experience. Well-informed
and tech-savvy, this new generation has high demands that
luxury brands must include in their brand strategy.
The notable change in where and how Chinese tourists purchase
luxury goods is still evolving. We witnessed a shift of power
between regions but cannot undoubtedly establish what the next
top destinations will be. In the race to win over Chinese travelers,
2016 is a pivotal year for luxury brands. They will have to rethink
their strategy to simultaneously capture Chinese shoppers
abroad, online and at home.

ABOUT THE STUDY
ACDL has led a three year study from 2014 to 2016 of China
consumers, evaluating whether their expectations are being
satisfied in luxury boutiques, while their shopping tastes and
behaviors have truly changed during the past few years. The
study included more than 1500 qualified participants who
were asked about their subjective impression of their visit in
luxury Fashion & Accessories, Watch and Jewelry and high-
end Cosmetics boutiques. Across the three years, participants
were given the same set of questions for each key component
of the luxury shopping experience. They provided an answer
Consumer Insights:
Luxury in-store benchmark study
from five choices: 0% = unacceptable to 100% = impressive
and qualitative comments. We have combined these results to
provide a benchmark analysis across the three year period.
In this report, we highlight enduring concerns that surround
the luxury store front in China and based on our professional
expertise in the market, we offer a set of solutions to address the
luxury retail performance.
Chinese shoppers represent nearly
of the global luxury market
Chinese shoppers’ opinions
regarding the shopping experience
2014-2016
50%
+15%
BENCHMARK RESULTS
Chinese shoppers, who nearly represent 50% of the global
luxury market, purchase luxury goods more and more frequently.
Despite a slowdown last year, their spending on luxury goods
witnessed a rebound in 2016, partly attributed to a new breed
of middle-class shoppers, according to a study by Goldman
Sachs1. Chinese shoppers therefore embody an essential
opportunity for luxury brands in every segment. However, brands
have to keep up on their purchasing behavior as their tastes keep
evolving and so do their expectations. More sophisticated and
demanding, they want brands to provide them with great service,
an appealing store environment and a unique product selection.
Shopping is not just about purchasing anymore, it is about
living an experience. Our benchmark highlighted that during
the past three years, luxury brands strived to satisfy these new
expectations by rethinking their in-store experience. Heading in
the right direction, Chinese shoppers’ opinions of their in-store
visits were on the rise over the three years, yet some areas still
need further progresses.
From 2014 to 2016, respondents’opinions regarding the shopping
experience followed an upward trend: overall subjective rating
grew by 15% and so did the willingness to buy (+16%) and to
refer (+9%). This improvement resulted from actions undertaken
by brands to satisfy shoppers’ new expectations but also to
enhance staff capabilities of serving. This feeling was most
dominant for respondents who visited Fashion & Accessories
brands. Across the three years, the main improvements noted
during the discovery process were when SA try to understand
shopper’s needs (+15%) and during the product trial (+18%).
While the customer service consciousness seemed to show
signs of improvement, certain service competencies still fell short
of meeting customers’ expectations. Firstly, brands could take
CONSUMER INSIGHTS: LUXURY IN-STORE BENCHMARK STUDY
further steps by making the shoppers feel valued, but they could
also make efforts in convincing them about the brand & product
benefits. To do so, SAs’ communication skills (i.e. product
knowledge, brand story) could be strengthened.
Making shoppers feel unique involves many steps of the
shopping experience. On one hand, to stand out in the eyes of
Chinese shoppers, luxury brands have to treat each client as a
VIP by building a professional but personalized relationship. From
the very beginning of the visit to the farewell process, diverse
techniques enable staff to build a rapport with shoppers and
finally develop loyalty. On the other hand, feeling special is not
enough to fully satisfy Chinese shoppers’ expectations anymore.
Today, the shopping experience must also be an immersive and
convincing brand experience.
MAKING SHOPPERS FEEL VALUED & SPECIAL…
… with warm and friendly greetings
A warm and passionate welcome can set the tone of the rest
of the visit and positively impacts the evaluation of the overall
experience.
“The SA greeted me proactively, and showed a
professional attitude throughout the visit...
I am quite impressed by the detailed service. Overall, the
SA was passionate and professional, the conversation was
pleasant.
”From our study, we can clearly see a rising trend in greeting
proactivity (+11%), but brands could go steps further to make
the first impression more unique. Personalizing the greeting with
name recognition – SA self-introduction and address clients by
their preferred name – might help to build a closer relationship with
clients. Yet, until this year, only small efforts were made in name
recognition. Some of the respondents of our survey indicated that
name recognition managed to make them “feel like asking for
advice from a friend”, and eased the pressure of buying. Another
way of creating a warm atmosphere and comfortable setting is
to offer a seat and drinks before the consultation, yet it was not
prevalent among the brands we evaluated.
… by understanding shoppers’ needs and introducing
relevant products
Visiting bricks-and-mortar is not simply for the products, it is
also for having a professional consultation, getting personalized
advice and enjoying a true human interaction. On one hand,
1 Inside Retail Hong Kong, “2016: Crunch year for China Luxury Retail”, Feb 2016

shoppers expect their specific needs to be listened to and
well understood. On the other hand, it also provides the right
opportunity for the SA to assess additional needs and attempt to
up-sell and/or cross-sell.
“She managed to interact with me by asking relevant
questions without digging too much into my personal
details. She was not too intrusive but asked the right
questions to get to know me well and introduce the right
products to me.
”In terms of discovering clients’ needs, luxury brands achieved
a two digit growth through the years. One interesting point
was observed in our study – shoppers are becoming more
sensitive regarding their privacy and personal information safety.
Therefore, training is necessary to teach SAs how they can
understand shoppers’ needs without being pushy or intrusive and
making shoppers uncomfortable.
… by providing convincing and personalized explanations
For each high-end brand, it goes without saying that shoppers
have high expectations regarding SAs’ professionalism in
brand and product knowledge. Being professional is not just
about having appropriate behavior towards shoppers. It also
consists of the ability to provide shoppers with relevant tips
and convincing explanations of products features and brand
history, although shoppers are increasingly well-informed today.
During the evaluation period, convincing skills did not show
significant progress. From 2014 to 2016, SAs’ knowledge
and professional attitude were perceived as relatively less
effective than other service and selling aspects.
“The SAtalked in a very lowvoice and lacked confidence.
She was not familiar with the brand and unable to respond
to my questions well…After the visit, the only thing I
learned from the SA was the origin of the brand.
”Front line staff needs to be confident in their speech and
therefore must have an in-depth knowledge of their products.
“I can tell the SA was very sincere and tried to highlight
the product features.When I raised objections, the SA
positively responded and provided suitable solutions. I
was convinced and willing to buy.
”Chinese shoppers, who already use a wide range of tools to get
information, want to understand how products personally meet
their individual needs and requirements. The more staff are able
to give clear, meaningful and personalized explanations, the more
shoppers will enter the brand’s universe and be comfortable with
their choice.
… even during shoppers’ departures
Even if Chinese shoppers perceived an overall improvement
(+12%) across years during the farewell, further efforts could be
made.
+11%
+15%
+18%
+10% +12%
+9%
Welcome Trial Departure
Discovery Knowledge Attitude
CONSUMER INSIGHTS: LUXURY IN-STORE BENCHMARK STUDY
“The farewell was OK but if SA would have walked me
to the door, it would have been more aligned with the
premium brand image.
”
“None of the SAs walked me to the door, only a simple
‘Bye Bye’. Maybe because the bracelet I purchased was
relatively cheap, thus the SA was more enthusiastic when
a frequent customer showed up. She ignored my questions
regarding product catalogue, and rushed to serve the
frequent customer. The different treatment was really
disappointing.
”Standing by shoppers until the end of the visit contributes to
the VIP feeling and a positive final impression. Brands could
remind staff the fundamental steps of the farewell (thanking,
walking to the door and inviting to come back) and the importance
of treating shoppers the same way during departure, whether a
purchase has been made or not.
… with high-end CRM & Loyalty offers
Considering the unavoidable digitalization of POS and how
shoppers are always connected; today CRM and loyalty programs
are more than just collecting shoppers’ information and then
following-up. Having a record of shoppers’ purchase history and
locations enables luxury brands to provide more customized
offers and retain shoppers. In a study of Chinese shoppers’
perceptions of loyalty programs, “89% of the respondents say
loyalty programs increase their spending…and more than 50% of
those use loyalty program apps2 ”. On the contrary, the majority
of the brands in our study underperformed in meeting this
expectation - loyalty programs were rarely introduced to shoppers
(around half of the visits). In our previous study of luxury brands’
digital competence3, we found that only 28% of the tested brands
enabled the loyalty program feature in their WeChat accounts
(one of the most popular social media platforms in China). Digital
services and offers (through social media, emailing and loyalty
programs) could be integrated into marketing strategies to offer
shoppers a more seamless experience and finally create
retention.
REACH RETAIL EXCELLENCE
There is a real thirst for enjoying a distinctive shopping experience.
It is the brands that respect the curiosity, and understand the
expectations and sophistication of Chinese shoppers who will
benefit the most from their rising prominence in the global luxury
market. The very first asset to reach this goal is the staff team. It
is essential to train staff and enhance their skills with appropriate
training delivered at the right time. AuCoeurDuLuxe is a leading
provider of shopping experience evaluation, training and sales
improvement. We care to cover the full customer experience
(pre- and post- sales, on multiple touch points) to help you to
make informed business decisions and reach retail excellence.
We are dedicated to supporting our clients and delivering the
best advice in luxury and retail. Please contact us for further
information and to share your expectations.
2 Jing Daily, “Study: 89% of Chinese Consumers Say Loyalty Programs Increase Their Spending”, May, 2016
3 ACDL, Digital Index, June, 2016

2016 Beauty benchmark
To provide an insightful vision of brands’ in-store
performances, we led two Mystery Shopper Programs to
track and compare top brands against others in Skincare
(SKC), Make-up (MUP) and Fragrance (FRA). These
benchmarks give an overview of the clients’ perceptions of
their shopping experience in Hong Kong and Shanghai. Our
objectives were :
To identify the gap between current in-store performance
and clients’ expectations in the beauty industry in Hong Kong
and Shanghai. To benchmark brands’ retail experience and
pinpoint the market best practices. To provide insights and
recommendations to attract and retain clients.
The surveys are now available in two cities: 2016 Beauty
Benchmark Hong Kong, and 2016 Beauty Benchmark
Shanghai
Would you like to order a survey? Do you want to investigate a specific topic?
We are at your service to answer your questions and develop a totally customized market survey.
Please contact us at inquiry@acdluxe.com
Visit our website to Read more about our Publications! www.acdluxe.com
For any inquiries please contact us at inquiry@acdluxe.com
Our Research department is dedicated to providing you
with powerful insights to drive your business decision-making.
AUCOEURDULUXE SURVEYS
2016 The Mainland Chinese Travel Retail study
The invisible continent of tax-free shopping embodies true
opportunities in today’s multi-channel retail environment.
Retailers are vying to capture this fast growing channel of
luxury goods, largely derived from the shifting travel and
spending behaviors among the top-consuming nationality
of luxury goods, the Mainland Chinese. Our survey focuses
on defining the Mainland Chinese Traveller’s expectations
in Travel Retail, their satisfaction of the retail experience and
desires for the future. April 2016
During the 2016 Omni-channel Retailing Conference in Hong Kong and the 2016 Duty free and Travel
retail Asia Pacific summit in Singapore, our President, Laurence Ouaknine, exposed the key findings of
our Travel Retail survey. The Mainland Chinese - Travel Retail”, released last April.
With a new logo and new design, we reshaped our website to
provide you an aspirational and comprehensive experience.
From Market surveys to Mystery Shopping Programs and
tailor-made Training solutions, AuCoeurDuLuxe stands as a
leading international HR consulting & training group and is
the right partner to improve your retail performance.
www.acdluxe.com
One of our clients requested our services to create rapid video
learning (short video content) in order to strengthen their staff’s
skills. Product knowledge, category knowledge and customer
handling are the three topics covered in these trainings. By
using diverse social networks (WeChat, Whatsapp, Vimeo) our
client is able to share in a quick and effective way these trainings
with their sales force. We pay attention to overcome language
barriers by translating each video in local languages.
AuCoeurDuLuxe Studio is increasingly called on to create online
training solutions.
We also develop more complex e-learning modules, composed
of film and quizzes that can interface with any Learning
Management System.
Online learning enables the transfer of knowledge in a short
amount of time to a large number of your staff.
As AuCoeurDuLuxe continues to grow, we are
always looking for exceptional talent. We welcome
applicants from luxury retail, consulting and market
research backgrounds who seek to push boundaries,
work in dynamic teams and deliver leading insights
and recommendations.
We are currently looking for positions in:
• Training Director – North Asia
• Training Consultant – E-learning specialist
• Senior Consultant – Market research &
consumer insights
For opportunities with AuCoeurDuLuxe,
please contact us at:
rh@acdluxe.com
Visit our New Website
Hiring Now
eLearning:
a new format for training that extends
learning beyond the workplace.
HAPPENING NOW

AUCOEURDULUXE PUBLICATIONS
Since 2013, Retail Performance Asia,
published by AuCoeurDuLuxe, gives you insights on the retail and the luxury trends in Asia.
Find in our latest issue Retail Asia #4, September 2015
Entertain Greater China’s Generation Y
Also known as “millennials”, Generation Y is a
key segment driving China’s dominance. Having
surveyed luxury millennial buyers from Mainland
China and Hong Kong, we shed light onto Gen Y’s
luxury expectations and provide solutions in omni-
channel marketing, sales and training.
Find good store managers in Asia
The success of each luxury boutique largely rests
on the shoulders of its manager. We look at the
challenges brands face in Asia to find, develop and
retain good store managers.
Strategies to overcome Greater China’s
slowdown
We develop a barometer on customer satisfaction
and experience of the in-store channel. Based
on these results and combined with our retail
knowledge, we provide key insights on how to
differentiate and succeed in this highly evolving
market.
The digital turning point for luxury retail
Luxury brands have gone through transformative
shifts when it comes to their relationship with digital
and social technologies. In this article, we detail the
key initiatives luxury brands can use to deliver a
truly seamless omni-channel journey.
You may order the previous version or
review the key articles on our website:
www.acdluxe.com.
For any inquiries, please contact us at
inquiry@acdluxe.com

AuCoeurDuLuxe
HONG KONG SHANGHAI SINGAPORE PARIS
www.acdluxe.com

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