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"The global luxury market's robust growth underscores the critical importance of luxury logistics," says Katja Busch, Chief Commercial Officer and Head of DHL Customer Solutions & Innovation. "The global luxury goods market reached USD $355 billion in 2023 and is projected to grow to USD $418.93 billion by 2028. As this market expands, luxury goods logistics goes beyond mere transportation; it's about seamlessly blending premium products with impeccable delivery standards."
Focusing on personal luxury goods such as designer fashion, high-quality watches and jewelry, and premium cosmetics and fragrances, the white paper explores current trends and challenges shaping the luxury segment, detailing their impact on supply chain and logistics strategies. It also investigates logistics requirements across the entire value chain of luxury companies, focusing on five key areas:
Supply chain visibility: Advancements in digital technologies, such as IoT, RFID, and serialization, enable Control Tower solutions to improve supply chain visibility and security, leading to better customer experience, profitability, and sustainability.
Security: Luxury goods logistics faces significant security challenges, including physical threats, insider threats, and e-commerce fraud, necessitating enhanced packaging, customer education, streamlined claims processing, thorough investigations, and advanced technology to ensure safe and reliable delivery.
Premium delivery: As online retail grows, luxury brands must invest in premium delivery services to replicate the in-boutique experience at home, enhancing customer satisfaction and reinforcing brand identity through features like flexible delivery timing, eco-friendly practices, personalized packaging, and streamlined returns.
Fulfillment centers: Luxury brands must transform traditional fulfillment centers into omnichannel processing centers (OPCs) to manage business growth, meet evolving customer demands, and comply with regulatory changes, integrating activities like re-commerce, circular processing, and sustainable practices.
Sustainability: Championing sustainable logistics, such as using Sustainable Aviation Fuel (SAF) for air freight to minimize the risk of damage to luxury goods, is essential for brands to enhance consumer perception and meet evolving environmental responsibility expectations.
Mirella Muller-Wuellenweber, Sector President eRetail & Fashion at DHL Customer Solutions & Innovation, adds: "The dynamics of global supply chains are perpetually in flux, especially for luxury goods originating from key European markets like Italy, France, and Switzerland. To navigate these changes, brands must understand their market profiles - whether mature or emerging - and tailor their supply chain strategies accordingly."
