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An Overview of Online Luxury Retailing: Trends, retailer strategies, and key retailers

An Overview of Online Luxury Retailing: Trends, retailer strategies, and key retailers

  • June 2018
  • 59 pages
  • ID: 5655299
  • Format: PDF
  • GlobalData


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An Overview of Online Luxury Retailing: Trends, retailer strategies, and key retailers

Global online luxury sales reached US$23.3 billion in 2016, an increase of 8.9% over the previous year. Americas region dominated the sales, having accounted for 39.9% of overall online luxury sales in 2016. High internet penetration, presence of affluent customers and strategies adopted by luxury players to boost online sales are the major factors driving the sales of luxury products through the online channel.

Retailers stayed away from online distribution as they felt that moving to the online channel undermines the luxury image of the brand.Moreover, affluent customers would be unwilling to pay a premium for online luxury products.

However, that perception is fast changing with retailers coming around to the online channel to cash in on the increasing adoption of the channel.Retailers such as Farfetch and Yoox Net-A-Porter, among others, have successfully devised strategies to engage luxury customers and customers are also increasingly using the online channel to understand the products before making an informed purchase decision

The changing consumer behaviour towards using digital media platforms such as Facebook, Twitter, and Instagram, among others, before making a purchase is serving as a precursor for luxury brands to promote their products on these digital platforms to boost sales.

Luxury brands are increasingly launching their own online portals to engage with customers and convert potential buyers into customers

The "An Overview of Online Luxury Retailing", report provides analysis of current and forecast market data for luxury goods retail sales through online channel in different product categories globally.

Key Highlights
- Americas lead in online luxury sales buoyed by increasing adoption by luxury US shoppers.
- Europe, with sales of US$8.6 billion was the second largest region in terms of value in 2016.
- Penetration of online in luxury sales lags online penetration in non-food sales globally.
- Americas has the highest penetration of online channel in non-food sales.
- Luxury retailers use the online channel to launch exclusive collections.
- Luxury retailers target millennials and Gen-Z consumers

- Current market sizes and forecasts to 2022 by region, by online channel and 12 categories, including Clothing, Consumer Electronics, Drinks, Footwear, Homewares, Jewelry, Watches and Accessories, Luggage and Leather Goods, Personal Care, Communication Equipment, Stationery, Tobacco, and Others .
- Market insights based on consumer trends and changing economic and demographic factors
- Luxury goods retail sales through online channel and fastest-growing markets for Luxury goods channel
- Category level online retail sales and forecast growth rates
- Competitive landscape covering market share of major Luxury goods operators and their Luxury goods sales online and trading update analysis, recent key events.

Reasons to buy
- Reliable online Luxury goods retail sales data globally for 2017 with forecasts for 2022 with information on largest and fastest-growing markets to inform market expansion and to manage risk
- Explore an in-depth analysis of online Luxury goods retail sales data for major markets to identify target categories and develop growth plans
- Learn from online Luxury goods retail trends and market drivers to customize your entry/expansion approach depending on the Luxury goods retail landscape
- Choose partners, understand the competition, with data and analysis of major online Luxury goods retailers globally, including market shares, trading performance, locations, travel retail strategy for each.

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