Luxury e-commerce platform Mytheresa has been able to retain most of its customer base, even after inflation hit the global market, the company’s CEO Michael Kliger said on Wednesday at The Retail Summit held in Dubai.
The event is taking place at The Atlantis, The Palm, until March 15.
The company sells luxury clothing and accessories on its online platform.
It posted €689.8 million as revenue in 2021.
It has also seen 100 per cent growth since last year, and was not impacted much by the pandemic either, Mr Kliger said.
“Inflation, or the perceived idea that inflation might hit the market, is not important for luxury spenders.”
The typical Mytheresa customers are those who are high-earners, and those who are in professional careers.
“They represent companies, have a packed social calendar and go on vacation often. This is a customer who constantly updates their wardrobe.”
This means that Mytheresa needs to cater to customers in a much more personalised way.
The company provides personal shoppers who not only advise customers on how to dress for occasions, but also attend events with them.
The company collects data on understanding consumer behaviour and focuses on customers who have a high repeat rate.
“Three per cent of our customers account for 35 per cent of our revenue,” Mr Kliger said.
“Our top customers have a lifetime spend of $1 billion.”
Such customers “appreciate if you take time out for them. That’s more valuable than their money.”
How quickly a customer’s call is picked up is the main KPI for Mytheresa employees, Mr Kliger said.
It is important to measure the emotional impact a consumer has towards a brand, he said.
“Four weeks after an event, we sent our customers a personalised handwritten note, with a gift reminding them about the event. When they reply to us, it helps us measure their happiness and it acts as customer feedback.”
“That is more important than financial KPIs.”
Customers, especially in the UAE and Saudi Arabia love to know that a product they are buying is a unique piece, said Mr Kliger said.
“So we have to show that this is available only at Mytheresa.”
If the product is sold out, it will not be available anywhere else. This technique is important to hold on to high-end consumers, he said.
Adding that the company’s customers are constantly travelling and have multiple homes across different countries, it is difficult to categorise customers into a single market.
Thus the company’s expansion plan will focus mainly on growing its global customer base.
It will also add other brands and fashion items including homewear.
“A lot of expansion is happening through customers as they kept asking why we did not have a certain product.”
“Talk to your customers, they often have the best ideas”
