Case Study

Building Trust and Customer Loyalty With Packaging Videos

Luxury Shopping Made Easy

Currently, the luxury market is undoubtedly at its peak. As perceptions of luxury consumption evolve and the consumer base expands to include Millennials and Generation Z, the domestic luxury market is witnessing remarkable growth. The expansion of non-face-to-face consumption has led to a continual increase in the number of people purchasing luxury goods online, resulting in the creation of various luxury platforms.

According to Paidmonitor, a market research firm, the size of the luxury goods platform market in Korea reached 1.31 billion USD in 2022, a 44% increase from 2021. Additionally, online transactions within the total luxury goods market have seen double-digit growth for the first time, exceeding 10%. These data indicate that online transactions in the luxury goods market are becoming more active, with market size expected to continue its growth trajectory.

Recently, luxury platforms have become highly competitive, often focusing primarily on price. However, we understand that savvy consumers do not make their purchasing decisions based on price alone—especially when it comes to luxury goods, which command high prices and benefit from a face-to-face purchasing experience.

Trust is Key

In the luxury market, winning the hearts and minds of customers fundamentally involves building relationships and trust. Luxury brands and platforms that sell their products online are making significant efforts to build trust with their customers. A prime example is Balaan, a logistics system that is indispensable in the luxury goods industry, introduced to foster stronger trust with customers.

Realpacking, a part of Balaan's care program, records the condition of products during the shipping process. It is the only system that enables customers to visually verify the condition of their products among the various Balaan Care processes, contributing to its high customer satisfaction rate.

Our solution entails Balaan conducting a final inspection of the product for damage, defects, and packaging issues, and automatically recording this process to provide a video to all customers who purchase the products. This video allows customers to verify the product's condition in detail before it leaves the factory, significantly building trust and maintaining a strong relationship with users.

Trust in Luxurious Experiences

Balaan's philosophy revolves around creating a luxurious experience from the moment of purchase until the customer receives their product. Realpacking enhances the waiting period with a special experience: a video of the product being prepared for shipping.

This approach is closely linked to customer experience (CX), increasingly crucial and significantly impacting brand image and customer loyalty. Essentially, Balaan is enhancing CX with innovative logistics systems like Realpacking, aligning with its philosophy.

Reactions of Customers to the Realpacking Video

"I'm surprised that they send me a video showing the product's condition in such detail before it leaves the factory. 😮"
"Being able to see this process is a huge confidence booster for the customer and increases their anticipation of receiving the product. 😀"
"It's very trustworthy and reassuring. 😉"

The vast majority of customers who received video logs of the packing process reported an increased sense of trust. Purchasing expensive products online often comes with inherent anxiety. Balaan addresses these customer concerns with the smart logistics system, Realpacking. Realpacking and Balaan have long been partners, and we have recently extended the solution to Balaan Studio, which will continue to expand.

Build Trust with Differentiated Services

The online luxury goods platform market is crowded, featuring not only Balaan, Must'It, and Tren:be but also others. Balaan distinguishes itself by building trust with customers and enhancing the customer experience through differentiated services.

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