The exploding growth of luxury shopping online [INFOGRAPHIC]
What all the luxury shopping online fuss about? Luxury shopping has for long been a mono-brand brick and mortar store affair, that said today luxury shopping online is exploding in growth. With the ongoing dominance of digital marketing, the luxury goods industry has like other well known brands, had to adapt to the new economy or be left behind.
Fear of losing their luxe image by selling luxury online
Luxury goods retailers resisted the move to the digital arena for fear of losing their luxe image. The big fear these brands had is that their branding would be cheapened and that luxury shoppers wouldn’t be willing to spend big online.
The lux brands had the belief that the personalised customer service and tactile shopping experience provided by the in-stores environment was of greater appeal to affluent consumers than online shopping.
However, with the success of forward thinking companies like Farfetch and Net-A-Porter, this false perception has since evolved. Now retailers know that these lux shoppers are willing to forego the bricks and mortar experience and buy their luxury goods online.
Being influenced online to buy from the store
Did you know that Fendi, a luxe brand, now markets its customised handbags online? So too with Burberry marketing and selling its inventory via the web. Today’s high-end consumers are often influenced by what they see big brands do online and go buy it from the store.
Although currently the number of online luxury consumers is still low, luxury shopping online is expected to rise rapidly. According to Mckinsey, online luxury purchases will more than triple by 2025.
There are still a few luxury brands that have only partially embraced digital marketing. In this they only display new stock on their websites, marketing their products specifically to drive consumers to their stores to buy.
OPPORTUNITY: Now is the time for heritage and their lux branding to tap into the market whilst the market is still relatively green.
Driving sales via social influencers
While other upscale brands such as Neiman Marcus have fully adopted digital for both their online selling and marketing. Neiman’s now use their website and also partnering with multi-brand online retailers to sell on their behalf.
As well as using third party resellers, luxury brands also need to create a compelling mobile presence. this means they have to influence their consumers through targeted use of social media with the view to drive traffic to their sites.
To fully utilise social media marketing, luxury brands need to work closely with targeted influencers who have a lux consumer following, to promote their brands. More and more luxury brands are adopting an influence marketing strategy particularly tailored to a specific social network. They have started to actively engage with their targeted consumer using videos across all platforms and crafting their marketing around events on Twitter as they occur.
Things have changed from the time when luxury brands started becoming popular. Luxury shopping online means lux brands have to adapt to the way consumers shop nowadays which is increasingly becoming online due to its convenience, or they risk getting left behind.
The “Millennialisation” of luxury customers
The main growth engine of the luxury market is a generational shift. Whilst 85% of luxury goods growth in 2017 still come from Generations Y and Z, the millennial are also driving luxury sales up. The “millennial state of mind” is permeating the luxury industry and is not only changing the way all generations are buying lux, but also how luxury brands are both marketing and selling to their target markets. This trend is particularly showing huge growth in the areas of shoes, jewellery and handbags.
These three areas were ranked as the three fastest-growing product categories in 2017, with apparel, beauty and handbags still accounting for the bulk of the lux market.
See the full story of luxury shopping online is represented by the [INFOGRAPHIC] courtesy of https://www.16best.net/ below. (an online company dedicated to researching products that customers are looking for. They are willing to walk a few extra miles if that means they can save you some time and money, while also helping you make the right choice when making a purchase.)