Online Luxury Retail
To understand the online luxury retail space (Appliances, Furniture, Technology, Fashion, and Jewelry) in North America (the United States and Canada) by finding stats surrounding the percentage of sales that are done online in the luxury space, the percentage of products bought online at high price ranges, and the market growth in the luxury space (CAGR).
To identify some examples of companies that are selling their luxury products online, focusing on the ones that do something interesting or non-traditional for e-commerce.
To understand the difference between merchandising and selling, making note of which brands will only merchandise and require visiting a retailer/store to complete a purchase versus those who actually sell fully online.
Online Sales: Brands Approaches
- Once a luxury brand has decided to leverage digital retail to sell online, two, non-exclusive, approaches are possible.
- The two approaches are developping a fully-owned in-house platform or selling through third-party resellers (online luxury monobrand retail model and online luxury multibrand retail model).
Online Sales of Luxury Products
- High-end categories such as beauty, perfume, footwear, jewellery, watches, and leather goods' 2016 online sales accounted for 8% of the global luxury market, which was valued at US$313 billion.
- By 2025, these online sales will increase to reach US$91 billion, meaning that one-fifth of luxury sales will take place online.
- In 2018, the luxury market grew by 5%.
- "Research by McKinsey found that a consumer online experience in some way influences at least 40 per cent of all luxury purchases."
- Millennials and Generation Z consumers generated 85% of the global luxury growth in 2017.
- "According to Boston Consulting Group (BCG), by 2025 the global luxury market will top $1.5 trillion and 50% of those luxury product buyers will belong to the Millennial Generation."
- Fifty-two percent of American luxury products' consumers do online research before buying.
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