There are many luxury department stores, but only one Bergdorf Goodman, with just two locations, one across the street from the other, is that uniqueness what makes it so special and probably its key for success.
Located on the corner of 5th avenue and 58th Street in New York City, Bergdorf Goodman is one of the most iconic stores for luxury goods in the world. The store has been doing business since 1901, and its main building is still synonym of luxury and high end fashion. This is the place where shoppers from around the world buy their dream outfits, or where they come to be inspired by the new trends and see and touch exclusive collections from the best international designers.
Furthermore, designers also have to work hard to make their way into Bergdorf, and once in there, they have to be creative and put on those racks exclusive collections that will be on the spotlight of the international fashion elite.
But in times where people favor online shopping, what are some of the internationalmarketing strategies of this brick-and-mortar store? Is Bergdorf Goodman still a jewel in New York for luxury shoppers or is it facing hard times and maybe foreseeing an end to its exclusive business model?
The challenges are both related to finances and to customers’ taste. On the one hand, the store finances represent a challenge as part of the Neiman Marcus group (since 1987). The groupis currently considering selling in order to face a $5 billion debt as sales have declined in recent years. According to Bain & Co. sales of personal luxury goods fell 1% in 2016.
On the other hand, a big challenge for luxury retailers, is that consumers are increasingly mixing high and low fashion, for instance pairing sneakers from Adidas or Nike with an Alexander McQueen leather jacket.
To counteract these threats, the store offers different services that give additional valueto their customer’s experience, and focusing on an international market that can now reach Bergdorf Goodman from anywhere in the world.
Luxury goods shoppers can now shop online and the online Bergdorf Goodman store allows the customer to see the product’s prices in their local currency, which may be useful for clients that want to relate the store prices to their own country’s spending power. In addition, the store is proud to offer personalized services in 25 languages though their dedicated stylists, allowing shoppers from around the world to visit the store and enjoy a personalized experience.
The in-store personal stylists are fashion experts that put together a personalized selection for who requires the service, among the stylists customers can find experts on Channel handbags, casual clothing, tie and shirt combo for men, and even one that is on call 24/7.
Tourism in New York City also helps Bergdorf Goodman success. Walking down 5th avenue is a touristic attraction per-se, but few people cannot look at the Bergdorf Goodman windows without being amazed by the artistic decoration that the store carefully puts in each one of their window arrangements. These impressive windows have been a powerful marketing tool for the store. The store’s building is also well known in New York for being a dinning and tea time luxurious spot. It has one full restaurant on the 7th floor and a café for small plates on the Beauty Level.
Other highly personalized services include, the bridal salon that offers an exclusive selection of gowns and provide a comprehensive set of services for the entire wedding party: dresses, accessories, eveningwear, make-up and styling.
Furthermore, the store provides Fur Care and Storage. If customers need a safe space to store their fur during warmer months, the store have them covered. It offers a state-of-the-art, climate controlled vault, as well as pick-up, return, alterations, cleaning and glazing.
Finally, the store does not work completely isolated, it benefits from being part of the Neiman Marcus group. For example, by offering the BG credit card that offers InCircle points that are shared with other stores within the group.
In conclusion, offering exclusivity and personalized services are still the most important marketing strategies for Bergdorf Goodman. We should keep this store on the radar if we want to see what the future holds for luxury goods, both online and in-store shopping, because it seems like Bergdorf Goodman will keep thriving in the world or business.