The personal luxury goods market is poised to grow approximately 5 percent by 2025, and in 2019, was worth about $428 billion (at current exchange), according to a Bain & Company report.
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BSPK, a Menlo Park, California-based digital platform for global luxury brands, raised $7 million in an oversubscribed Series A round of funding to connect sales advisers and their clients in order to drive personalized sales and grab a larger piece of that growing market.
Northern Light Venture Capital led the round, which gives the company a total of $9 million in venture-backed funding since being founded in 2018, Zornitza Stefanova, founder and CEO, told Crunchbase News. That includes a seed round in 2019, also led by Northern Light, according to Crunchbase data.
“We have seen firsthand, as investors and on a board level, Zornitza’s visionary leadership in action and are excited to back her mission to authentically transform digital engagement for the world’s leading brands,” said Jeffrey Lee, managing director and co-founder of NLVC and a board member of BSPK, in a written statement.
BSPK operates in the U.S. and Europe, and the company enables sales advisers to personally communicate with customers via their brand’s website, in-store, mobile or video streaming.
The new funding will be used to accelerate its global expansion, double its research and development team and continue to invest in the technology, Stefanova said.
“We are already in Europe and the U.S., but Asia is an important market for us, and not just for us, but also for our customers, and we want to support them there, too,” she said.
During the global pandemic, a few things happened in the luxury brand space, especially in the U.S.: The first was that luxury brands had to pivot in order to adapt to consumer wants and needs. Many tapped into their resale shops to prop up sales, according to CNBC. A second was the breakdown of the planned merger between LVMH and Tiffany. And another was the unveiling by Amazon of its Luxury Stores.
As those brands figure out how to recover, BSPK is enabling them to engage with and retain customers by providing them with the technology and data that they did not have before, Stefanova said. That has helped the company double its growth each year since 2018, and she expects to continue on that trajectory into 2021 and beyond.
“We are tripling retention for our customers, and we are doubling–in some cases more–their sales conversions,” Stefanova added. “Retention is big right now, and they are figuring out how to bring the customer back.”