them as individuals, and it’s those products the retailer will stock. Incu has been in business for just over two decades and operates seven branded stores on Australia’s East Coast, which stock a range of domestic and international designer labels, such as Anna Quan, Christopher Esber, Esse Studios, Dries Van Noten, Acne Studios, and Simone Rocha.  It also operates stand-alone stores for several overseas partners, including Rag & Bone, Ganni and APC. “So we are like their local partner, and we will also stock their brands within our own stores,” Low explained.  Understanding the demographic Unlike retailers that look at their customers in terms of their age group or socioeconomic status, Incu takes a broader approach. “Our customers are interested in design, they probably have similarities in the way they shop and the food they eat, and what they’re keen on in terms of art and the music they listen to,” Low said.  “They’re not after something different for difference sake, but they value authenticity,” he added. He says, returning to the example of the high-end bread shop and the pork roll store, that Incu’s customers might buy an expensive product, or they may purchase something more affordable, but so long as there’s a story behind it, and it speaks to them, then they’re into it. Opportunities in 2024 Low says Incu’s biggest opportunity in the coming year is in digital, a space it has operated in for around the last 10 years, but one where he feels the retailer still has room to improve.  “I feel like because we naturally understand bricks-and-mortar it’s been easier, but we still haven’t been able to translate the experience we offer into digital, and so we’ve been assessing how to do that in a better way.” He said Incu probably over-invested in its tech stack coming out of Covid-19, something they did because “we had no idea what we were doing”. “You get bombarded with people offering you the world, but what we’re now looking at is simple things we can do internally.” One of the areas where the company has struggled to translate its physical experience into digital is the buying journey. When customers come into a store, they’re greeted by a staff member who will chat about what the customer is looking for, what they like, their lifestyle and the occasion for the purchase.  “And then they’ll pick out something for you.” With digital, the human touch isn’t there. The recommendation tool might be accurate sometimes, but other times it’s way off the mark. In-store, he said, the staff member can show the customer around and gauge what they want. “So, we can really personalise the experience in a way that’s quite challenging for digital to do.” For Low, the human touch that physical retail offers is critical to the company’s success. With digital, Incu is looking at how to make the online experience more high touch, even down to adding a handwritten note to the package for the customer to read when they get their delivery.  Challenges in 2024 One of the headwinds Incu faces is the fact that, while it has in-house brands, it also stocks a wide variety of products from other retailers. If those retailers reduce the price on global e-commerce platforms, then customers realise they can get the product cheaper there than going into an Incu store.  “So, I think one of the challenges for us is the economic headwinds locally, but also managing and reviewing how things are going overseas to see how our brands are protecting us as retailers.” He sees Incu’s competitive differentiation as that in-store experience. “When you come into one of our stores and have that connection, then it’s hard to beat.” And providing a welcoming atmosphere isn’t just about making an immediate sale. Customers could come in to browse, but the experience they have when it is time to purchase a new pair of jeans, shoes or a dress, means they feel valued when they come back in to buy something.  The cost of living has also meant that aspirational shoppers are tending to go elsewhere and buying products that are more affordable and, as a result, Incu has found its average transaction value has crept up. More affluent shoppers, those who are insulated from cost-of-living pressures, are still spending, and when they do, they’re spending more, Low said. Those customers are also more experimental in what they buy, reflecting changing gender and identity norms in Incu’s core market, he noted. Low has been with the business for 19 years, starting out on the shop floor and working his way through to the C-Suite. “It’s been a great journey,” he said. “I love the company and the opportunities it presents.”