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Luisa Via Roma Business Model In A Nutshell

LuisaViaRoma is a physical fashion store in Florence, which successfully turned into e-commerce by the early 2000s. By 2019, LuisaViaRoma made more than $130 million in revenues, of which 90% coming from e-commerce.

ElementDescription
Value PropositionLuisa Via Roma offers a range of value propositions for its customers: – Luxury Fashion Selection: The platform provides access to a curated selection of luxury and high-end fashion items. – Exclusive Brands: Luisa Via Roma partners with exclusive and sought-after fashion brands, offering unique and limited-edition pieces. – Fashion Curation: The company offers expert curation and trendspotting to provide customers with the latest fashion trends and styles. – Global Reach: Luisa Via Roma serves customers worldwide, offering international shipping and multilingual support. – Customer Experience: The brand emphasizes a personalized and high-quality shopping experience for its customers. – Innovation and Technology: Luisa Via Roma leverages technology and digital innovation for a seamless and interactive shopping experience.
Core Products/ServicesLuisa Via Roma’s core products and services include: – Luxury Fashion E-commerce: The company operates an e-commerce platform accessible through its website and mobile app. – Fashion Merchandise: Luisa Via Roma offers a wide range of luxury fashion items, including clothing, footwear, accessories, and beauty products. – Exclusive Collaborations: The brand collaborates with designers and brands for exclusive and limited-edition collections. – Digital Fashion Shows: Luisa Via Roma hosts digital fashion shows and events to showcase new collections and trends. – Customer Support: The brand provides personalized customer support, including style advice and assistance. – Innovative Technology: Luisa Via Roma integrates technology such as augmented reality and virtual showrooms into the shopping experience.
Customer SegmentsLuisa Via Roma’s customer segments include: – Luxury Shoppers: Individuals seeking luxury and high-end fashion from renowned designers and brands. – Fashion Enthusiasts: Customers with a passion for fashion and a desire for unique and exclusive pieces. – Global Audience: Shoppers from around the world looking for international luxury fashion options. – Tech-Savvy Shoppers: Those comfortable with digital and innovative shopping experiences. – Personalized Shoppers: Customers who appreciate personalized style advice and recommendations. – Event-Goers: Individuals preparing for special occasions, events, and red carpet appearances.
Revenue StreamsLuisa Via Roma generates revenue through several revenue streams: – Product Sales: The company earns revenue from the sale of luxury fashion items, including clothing, accessories, and beauty products. – Exclusive Collaborations: Revenue may come from exclusive collaborations and limited-edition collections. – Global Sales: Luisa Via Roma serves a global customer base, contributing to international sales. – Digital Events: The brand may generate income from digital fashion shows and events, including sponsorships and partnerships. – Innovative Technology: Revenue can be generated from innovative technology integrations and solutions offered to customers. – Personalization Services: The company may charge fees for personalized style advice and consulting services.
Distribution StrategyLuisa Via Roma’s distribution strategy focuses on luxury, technology, and global accessibility: – Luxury E-commerce: The brand operates a luxury e-commerce platform accessible through its website and mobile app. – Global Shipping: Luisa Via Roma offers international shipping to serve customers worldwide. – Exclusive Partnerships: The company collaborates with exclusive brands and designers to offer unique and limited-edition fashion pieces. – Digital Innovation: Luisa Via Roma leverages technology for interactive and innovative shopping experiences. – Customer Engagement: The brand engages customers through personalized recommendations, style advice, and events. – Multilingual Support: Luisa Via Roma provides multilingual customer support to cater to a diverse global audience.

Origin story

LuisaViaRoma is among the most successful fashion e-commerce businesses.

The most interesting part of LuisaViaRoma case is how the company converted successfully from physical to digital to build among the most successful e-commerce sites on earth.

Its story started at the end of the 1800s when – as mentioned on the company’s website –  French hat designer Luisa Jaquin open a small boutique selling straw hats in Paris. In 1929, the daughter, Olga, married Lido Panconesi and together they opened the LUISA boutique in Florence.

Starting in 1968, LuisaViaRoma business model primarily consisted of closing deals with established brands (they started with Balenciaga, Balmain, Givenchy, and Saint Laurent) to showcase and sell them in Florence’s store.

The business model change

In 1999, as the Internet was finding its commercial applications, LuisaViaRoma built its online store. As highlighted by Panconesi, CEO of LuisaViaRoma:

I didn’t know about the web at all. Just because of my curiosity, I wanted to learn everything about it as quickly as possible. As soon as I realized the potential of the web—that it could put me in touch with all our clients at the same time, all over the world—I just put myself in it and started investing. First, in engineers to write our website from scratch. At that time, imagine: Google [just emerged from the beta stage] and Facebook arrived in 2004. So staffing, especially in Italy, was zero. In Italy, the infrastructure did not exist at that time. Nobody was accustomed to buying by catalog, so there was no business in Italy. But Italy became our first market.

What makes the company so successful?

As recounted by Panconesi in the same interview, one of the greatest teachings he got from his grandmother was “Make yourself up a good name and then you can rest,’ which basically means, ‘Invest in the brand,’ in business words. That’s what we’re doing: investing in our brand, LuisaViaRoma.”

LuisaViaRoma digital distribution

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LuisaViaRoma traffic and digital metrics.
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LuisaViaRoma International Presence.
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The e-commerce personalizations and shopping prefenreces.
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The suggestion algorithm.
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The outfit suggestion engine.
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luisaviaroma-shop-the-look
The “shop the look” feature that prompts customers to shop related items.

How much does LuisaViaRoma make?

According to pambianconews, LuisaViaRoma closed 2019 with revenues for 123 million euros ($137 millin) of which 90% made online (LuisaViaRoma also has a physical store in Florence).

Key Highlights

  • Origin Story: LuisaViaRoma started as a physical fashion store in Florence and has a history dating back to the late 1800s when it was a small boutique selling straw hats. Over the years, it evolved and eventually became a successful e-commerce business.
  • Business Model Transition: In 1999, LuisaViaRoma transitioned to the digital realm by building its online store. This shift allowed the company to tap into the potential of the internet and reach a global audience. Despite the challenges of the early days of the web, the company invested in developing its website.
  • Brand Investment: The company’s CEO, Lido Panconesi, emphasized the importance of investing in the brand as a key factor in its success. This strategy aligned with the idea of creating a strong brand presence to ensure sustainable growth.
  • Digital Distribution and Personalization: LuisaViaRoma’s e-commerce platform focused on personalized shopping experiences, employing techniques like suggestion algorithms, outfit recommendation engines, and the “shop the look” feature to enhance customer engagement and conversions.
  • Revenue Generation: By 2019, LuisaViaRoma had achieved significant success, with revenues amounting to approximately $137 million. Notably, 90% of these revenues were generated through their e-commerce platform, showcasing the company’s successful transition to the digital marketplace.
  • International Presence: The company’s reach extended beyond its physical location in Florence, as it managed to establish a global presence through its online store. This expansion allowed LuisaViaRoma to connect with customers worldwide and cater to diverse markets.

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