However, the sector must now adapt to societal changes and the digitalization of consumer behavior. The luxury customer experience is evolving. This calls for innovation and services adapted to both physical stores and e-commerce platforms. The goal: to attract consumers who are eager for unique emotional experiences.
The gift card can meet new consumer habits while offering a personal experience to luxury customers. It can help luxury brands shift from a purely physical presence to an omnichannel approach.
The digitalization of the luxury market: welcome to luxury 3.0
In 2025, physical stores will still play a major role alongside online distribution channels. As physical meeting points with the brand, customers look for a premium shopping experience that makes them feel unique.
But the web also has its say. Driven by the pandemic, the digitalization of the luxury industry continues, supported by millennials and generation Z, who are expected to make up 75% of luxury consumers by 2026. To meet their expectations, brands have had to adapt and reinvent themselves. Innovation was needed to retain existing customers and attract the desires of a new audience.
Digital has given luxury brands the “luxury” of creating a new kind of relationship with customers. How? By offering tools that were previously unthinkable, and that respond to their challenges in acquisition and loyalty. One of these tools, already successful in other sectors, is the digital gift card.
The digital gift card enhances the luxury experience
According to a McKinsey study, 70% of luxury consumers seek a smooth and immersive digital experience before making a purchase. This figure shows the importance of digital and personalization in the sector.
The digital gift card is a relevant tool to strengthen acquisition, loyalty, and even payment solutions.
Take the example of a gift card buyer, an ambassador for a luxury brand. Their goal is to create joy and emotion through the gift. They want to invite someone to discover the brand’s universe, often by encouraging an in-store visit.
For the person who is unsure about choosing the right handbag model or the perfect vintage, the e-gift card is a real opportunity. They’ll prefer to satisfy a desire by simply and quickly purchasing a gift card online. A smart gift for one person, a golden ticket to luxury for the other.
Digital does not take away personalization or emotion. Even dematerialized, the gift card can be 100% customizable (with photos or videos). Sent by email instantly or scheduled for later, it can be saved in a digital wallet and used anytime.
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Gift cards in luxury: more than an online sales channel, a seamless omnichannel strategy
According to McKinsey, nearly 20% of luxury product sales will be made online this year. Even more, digital channels influence 80% of purchases in the sector, showing the importance of omnichannel strategies in the customer journey.
Online continues to grow, but luxury customers will still go to physical stores. The relationship built in-store will never be replaced by digital marketing strategies, no matter how effective.
Luxury players must integrate both channels and make them work together to improve performance. They need to accelerate digitalization while preserving the in-store customer experience.
That’s the strategy chosen by Fragonard, the famous perfumer from Grasse, which launched a 100% omnichannel gift card program. The concept is simple: a gift card can be credited down to the exact euro, either in-store or on the brand’s e-commerce site, and used in all Fragonard locations (stores, factories, museums).
Whether digital or physical, the gift card has already proven its worth for major brands. It is a key strategic lever to meet future challenges, reach new audiences, and boost performance for luxury houses in the coming years.
