When free shipping becomes the norm, how can brands differentiate themselves in fulfillment? L2’s Digital IQ Index: Japan & Korea Luxury finds that free shipping is offered by 70% of luxury brands in Korea, with only two brands (Swarovski and Uniqlo) requiring a minimum payment which averages to KRW 90,000 ($90).
Genius brand and No. 1 in the Korea Index MCM offers same-day free shipping, which is rare among luxury brands in Korea. Customers can place an order in the morning to receive their goods in the afternoon. Paul Smith doesn’t offer that feature in Korea, but makes same-day pickup easier by showing inventory status on its e-commerce page. Users can sign up to receive alerts when items are restocked.
In Japan, just 33% percent of brands offer free shipping for any purchase and the average minimum order required for free shipping is JPY 47,000 ($400). However, brands are competing on fulfillment quality. Lacoste, for example, allows consumers to choose the delivery window down to the hour.
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