What Does It Take to Succeed in Luxury E-Commerce in 2025?
As the luxury e-commerce market navigates rising costs, shifting consumer behavior, and a slowdown in aspirational demand, the question of how to thrive in this space is more relevant than ever. At BoF VOICES 2024, industry leaders Lauren Santo Domingo (Moda Operandi) and Michael Kliger (MyTheresa) shared their insights on building resilient, customer-centric businesses in an increasingly competitive market.
Their strategies offer valuable lessons for global luxury fashion enterprises aiming to differentiate while scaling efficiently.
Differentiation Matters
In a market saturated with “endless scrolls” and uniform experiences, creating curated and unique customer journeys is essential. MyTheresa’s approach focuses on inspiring customers through a tailored experience, while Moda Operandi leverages editorial storytelling to elevate its platform.
“A small retailer has to win on differentiations,” Santo Domingo noted. However, even large enterprises benefit from standing out. Kliger emphasized that differentiation doesn’t just drive engagement—it enhances the brand itself, creating a competitive edge that resonates with customers long-term.
Prioritizing High-Value Customers
One of the clearest takeaways from the conversation was the importance of identifying and retaining top-spending clients. Kliger explained that MyTheresa targets “wardrobe-building” customers who deliver significantly higher lifetime value.
The company uses advanced algorithms to predict customer loyalty by analyzing purchase history, payment methods, and browsing behavior. This predictive approach ensures that marketing resources are allocated to customers most likely to return and remain profitable over the long term. By focusing on these high-value clients, MyTheresa has successfully maintained profitability even amid a broader slowdown in luxury e-commerce.
The Role of Data
Data-driven insights are the foundation of successful differentiation and customer focus. Both Santo Domingo and Kliger stressed the power of data to identify valuable shoppers and tailor strategies to their needs.
For Moda Operandi, this includes leveraging its multi-brand trunk shows to surface high-value clients and gather feedback on forthcoming collections. For MyTheresa, predictive insights
guide targeted marketing and retention strategies, ensuring resources are directed where they’ll have the most impact.
Scalability and Efficiency
As enterprises grow, the need for streamlined operations becomes paramount. Kliger highlighted how MyTheresa’s upcoming replatforming of Net-a-Porter onto its tech stack is designed to reduce complexity and enable teams to focus on front-end innovation.
“Streamlined systems allow brands to focus on what matters most: inspiring customers,” Kliger said. Enterprises that can balance operational efficiency with differentiation are best positioned to scale without losing their brand identity.
Looking Ahead: Behavioral Data as a Game-Changer
Luxury e-commerce thrives on relationships, not just transactions. As Lauren Santo Domingo aptly put it, “Brands want to sell with us because we are brand-enhancing.”
This aligns closely with our work at Secret Sauce Partners. For over a decade, we’ve helped global retailers use AI-powered behavioral data to personalize at scale. By analyzing what customers buy, return, and keep, we enable brands to deliver frictionless, accurate fit & size personalization that enhances loyalty and improves bottom-line results.
As the industry faces continued challenges, the path forward is clear: differentiation, customer focus, data-driven insights, and scalability will define the leaders of tomorrow’s luxury e-commerce landscape.