Multibrands tested by the luxury crisis: strategies to increase sales

They have resisted the advent of ecommerce, the invasion of single-brand shops, even the pandemic. High-end multi-brand stores - a format that exists only in Italy as it is: often family-run and familiar in its relationship with the customer - have been able to evolve and change, keep pace with social and technological changes, but also with those of style. Now they are faced with a new challenge: to entice a listless consumer; to reassure those who are at the mercy of the uncertainties that now invade everyday life from all sides; to bring back a customer whom rising prices had driven away from buying.

Not an easy task: "We are in a rather weak market moment, especially in the luxury segment," confirms Federico Giglio, CEO of Giglio.com (which for the first time is present at Pitti with a dedicated space) and of the Palermo boutiques, "because the price increase has caused customers to become disaffected and the waltz of appointments has created more confusion. Generally speaking, sales in physical shops are holding up well, while online sales are suffering from declines in certain geographical areas'.

Among the strategies deployed by Giglio to overcome the impasse is that of renewing the offer with the end customer's needs in mind: 'We are shifting part of the budget, which has generally decreased, towards products that work better: sportswear, for example, which is giving us excellent results. We aim to always have a positive and responsive attitude,' Giglio concludes.

Beppe Angiolini, who with the Sugar store in Arezzo is one of the reference points for Italian multi-brand stores, agrees that it is not an easy time: 'There is a slalom between sometimes excessive prices, climate change and growing ecological awareness, and the difficulties of what was once called the middle class, which certainly cannot afford too many 'whims'. This is why every piece one chooses must at the same time have elements of charm, novelty, but also something 'eternal' destined to last over time". According to Angiolini, "the desire to buy is somewhat back, but with extreme caution: customers want the security of making choices that will not turn out to be wrong the following season". And as to what can make the difference, he cites 'quality, but above all the eyes to see and the desire to listen to those who come to make a purchase. Care, empathy, attention - confidence I dare say -: buying a dress or an accessory is perhaps more of an emotional investment than before'.

Between South Tyrol and Veneto, the need to offer customers the best possible selection of brands and the most unique experience possible remains a strategic pivot. "We are experiencing a very positive moment," explains Daniela Kraler, owner of the Franz Kraler boutiques in Dobbiaco and Cortina D'Ampezzo, "also thanks to the fact that next year Cortina will host the Winter Olympics and there is a lot of excitement. We have tourists all year round and from all over the world, including Asia and the United States'.