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The importance of Department stores in the luxury field

Updated: Feb 6


Axel from Vision Factory

Author: Axel Sousa

Date of Publication: 23/05/2023





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First, department stores are retail establishments that sell a wide variety of goods. These usually include ready-to-wear apparel and accessories for adults and children, yard goods, and household textiles. Here, we are interested in the department stores specializing in the luxury field.


For example, we are going to talk about popular luxury department stores such as “Galeries Lafayette”, “La Samaritaine”, “El Corte Inglés” or “Harrods”. What kind of brands are there in these stores? Generally speaking, very popular luxury brands sell in the stores such as Dior, Louis Vuitton, Gucci, Balenciaga, and a lot more. Let’s see what is happening in department stores.


The qualities they offer to a brand


Here are some main advantages of department stores that highlight their importance for luxury brands.


No need for advertising


Every customer who enters a department store will have access and a view on multiple stands of different brands. Whatever they came for, they will see the products and goods of your brand. Moreover, the customer who enters, searches precisely for luxury products. So the probability that they will be interested in one of your products is very high and the biggest brands of the world see that.


Organization


To continue, there are a lot of customer benefits from an excellent organization. For example, each floor is dedicated to a specific range of products. Therefore, department stores offer a wide range of sales consultants with expert knowledge. This enables them to help you to choose the right product for your needs.


Location


The location of these stores is also very strategic. This is because they usually are in the center of big cities. For example, Paris has the biggest luxury department stores in its center with the Galeries Lafayette and La Samaritaine.


Economies of large scale


This is another advantage of departmental stores, namely that they are large-scale establishments. This means that they enjoy all the economies and benefits of large-scale organizations. As a result, this reduces their costs and increases the profits for the brands which have a stand in them.


Management


All brands are managed by one single organization or person. This central management takes care of supply, supervision, accounts, communication, and advertising for the departmental store. This way, it facilitates the tasks for the brands.


All in all, we can affirm that department stores are a non-negligible opportunity for the big luxury brand. In fact, they offer a very strategic point of sales which gives huge profits for small costs for the brands. Besides that, they seem like an obligatory step for a rising luxury brand. We could end this article by mentioning that having a stand in one of these stores is important for the legitimacy of a brand. Actually, this is something that a lot of niche brands see and which represents a “step” in their construction.


 

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