luxury real estate

Customer experience is the cornerstone of luxury purchases. Buying luxury yachts, jewelry, clothing, cars, restaurants……you name it – its always different. Now lets look at the other side of the coin. Have you noticed that retail in your downtown area is dying? Have you noticed that malls are struggling? Macy’s, Target, Walmart, Gap, Nike and so many other retailers are struggling. The silent voices are the small, non-chain merchants, commonly known as the mom and pop retailers. When is the last time you went into an independent toy store? The consumer has gone online, and Amazon is the category killer. Duh! Right? Consumers use the internet to shop.  It is a lot easier to find products and pricing using your keyboard and a browser than it is to go in and out of stores, parking, cashier lines, etc.     Retail Redefined If I were in the retail business today, I would create a great in-store online shopping experience. You valet your car. Going inside, you can sit down in a comfortable lounge with waitresses and bartenders. You order your merchandise as you sip your latte’. Runners collect your merchandise from the attached warehouse. When you finish your beverage or snack, the valet has placed your items in the trunk and brought your car up. Luxury Retail Have you looked on Amazon for Prada?  Louis Vuitton? GEORGIO ARMANI? It’s not there. They do not sell their products online, and this is true of many luxury brands. What makes Rodeo Drive work is that the products there cannot be purchased anywhere but in the store. Notice how well luxury malls are doing – South Coast Plaza in Orange County and Fashion Island in Newport Beach. Amazon cannot touch them. Is Online Real Estate like Online Retail Not yet. Zillow launched Instant Offers to test this. They focused the product launch on the investor market. Investors do not really care about the purchase as much as they care about the economic fundamentals. They trust inspectors and appraisers. They trust their data and analytics about future prices and rental prices. Investors are a perfect market for online real estate. Beyond that, it will take time for the market to mature. If I were to forecast this opportunity forward for Zillow, I think that they have a major opportunity to make real estate investing easy. And the housing market is a great strategic investment […]

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