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Online Luxury Retail Market On Target To Hit $42 Billion By 2019 March 08, 2016 (0 comments)
New York, NY—The online luxury retail market is expected to hit almost $42 billion in annual sales by 2019, according to a new study conducted by Technavio and reported in Luxury Daily.
At present, multibrand retailers dominate the market. Of the five top online luxury retailers, only Ralph Lauren, in fourth place, is a single brand. The others are, in descending order, Nordstrom, Neiman Marcus, Saks Fifth Avenue, and in fifth place, e-tailer Net-A-Porter.
According to Luxury Daily, part of the reason why multibrand retailers have surpassed individual brands is that they’ve made the process much easier, including free shipping and easy returns.
There is high competition between established vendors and newer entrants, says Luxury Daily. To differentiate themselves, retailers are rolling out services and experiences online, including content, product selection and personalization. Additionally, redefining the e-commerce site as a digital flagship can assuage concerns about brand dilution, says the article, which also points out that as department stores find themselves facing increasing pressure from ecommerce-only players, a seamless omnichannel approach will enable them to remain competitive.
98% of affluent consumers use the Internet daily, connecting on an average of three devices, while for the aspirational audience, access to a wider product selection and the ability to research a purchase attract them to online shopping.