What: Luxury brands are leveraging digital tools like WhatsApp and AI, alongside physical experiences such as branded cafés, to enhance customer engagement.

Why it is important: These strategies highlight the importance of blending digital innovation with physical presence to strengthen emotional connections with consumers in a competitive market.

Luxury brands are increasingly adopting new digital and physical strategies to enhance their omnichannel presence, according to the latest Vogue Business Index. Brands like Loewe and Tommy Hilfiger are using WhatsApp for direct customer interaction, while others like Brunello Cucinelli employ AI to enrich storytelling. Additionally, hospitality collaborations, such as branded cafés by Kate Spade and Michael Kors, offer immersive brand experiences beyond traditional retail environments.

The expansion into emerging markets is notable, with significant store openings in Latin America and the Middle East driven by favourable economic conditions. Meanwhile, the top five omnichannel brands have shifted, with Hugo Boss rising to second place behind Gucci, followed by Burberry, Prada, and Bottega Veneta.

Cafés and chatbots enhance luxury brands' omnichannel appeal