A staggering 51% of luxury retail employees plan to leave their jobs amid a talent crisis gripping the industry, said a landmark report titled “The Advisor Effect: Driving Retail Success by Re-imagining the Role of the Client Advisor”.

 

Unveiled by CXG, a leading consulting and solutions firm dedicated to enhancing luxury brand performance through innovative customer and employee experience strategies, the study said this marks a notable increase from 30% just two years prior. 

 

The report, focuses on developing strategies for recruitment, onboarding, training, and retention. It is based on insights gathered from over 100,000 customer experience evaluations for luxury brands worldwide, 12,000 surveys conducted with retail employees from 12 luxury brands between 2022 and 2024, and 27 in-depth interviews with senior professionals across the fashion, jewellery, and beauty sectors in Europe, the US and China.

 

Critical juncture

"Our research shows that the luxury retail sector is at a critical juncture," stated Christophe Caïs, Founder and CEO of CXG. "The rise of digital tools and omnichannel strategies has transformed the traditional luxury retail model, requiring client advisors to blend high-touch personal service with digital proficiency."

 

Evolving roles

The responsibilities of luxury client advisors have expanded dramatically. Modern advisors are now expected to engage in digital interactions and relationship management while mastering storytelling and customer relationship management (CRM) skills. This evolution necessitates a blend of emotional intelligence, adaptability, and technical prowess to enhance customer experiences.

 

Impact of advisor interactions

In the luxury sector, 78% of customers report that a single negative interaction with an advisor can lead to abandoned purchases. Conversely, advisors who deliver exceptional experiences can boost purchase intent by five times — 86% compared to just 17% for those who do not.

 

Work-life balance concerns 

Alarmingly, only 39% of employees reported having a good work-life balance. Younger generations increasingly seek clear career paths, skill development opportunities, flexible scheduling, and purpose-driven work that extends beyond traditional compensation.

 

Strategic recruitment initiatives

Luxury brands are now required to source talents from diverse industries while leveraging social media and AI for recruitment. This shift aims to increase the talent pool brands can recruit from.

 

Future-proofing luxury retail in the GCC market context

The study's findings come at a critical time for the GCC luxury sector, is experiencing unprecedented growth. According to a report by the Chalhoub Group, the personal luxury market in the GCC reached a record $12.5 billion by the end of 2023, growing at double the speed of the global industry. This significant growth underscores the region's robust demand for high-end fashion, luxury watches and jewellery, and prestige beauty, solidifying the GCC’s position as a key player in the global luxury landscape.

 

Additionally, the report will explore how to reimagine the role of client advisors in luxury retail, offering strategies to help retail professionals adapt to evolving expectations. Furthermore, the report emphasises the importance of creating purpose-driven work environments that enable advisors to thrive while balancing meaningful engagement with professional growth and flexible work-life integration.

 

Caïs continued: “The GCC luxury market's impressive growth, highlights the critical need for brands to invest in their employee experience. As the region continues to outpace global growth, luxury brands must refine their Employer Value Proposition (EVP) strategies to attract and retain top talent capable of delivering exceptional luxury experiences. Brands that prioritise talent development and align with evolving employee values will be well-positioned to sustain competitive advantage and deliver exceptional luxury experiences in the future.”--TradeArabia News Service