Luxury Online Retail to Double by 2020← Back
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Image Source: Yoox.comThe online world of luxury retail is set to double its profits over the course of the next five years, notably with major fashion brands expanding their online presence. The luxury goods market, according to a report published by Verdict, is to expand availability of luxury goods online, making the internet a privileged place for high-end commerce. As more and more brands focus on their online presence, and engage customers through differentiating offers, luxury e-tailing is set to become even more of a key transactional player in the global luxury market, Verdict reports.
The report stipulates that online pureplays, of the likes of Yoox, MyTheresa and FarFetch will be at the heart of the online expansion, with these multi-branded online commerce platforms experiencing a growth of 178% between 2015 and 2020. This will result in pureplay market reaching a global profit of €15bn and representing 30% of online spends. With the international reach that these sites cultivate, the exclusivity of certain unique brands, whose physical transactions are limited to a domestic market, will continue to draw international customers to these online platforms. The convenience of shopping diverse brands on one site continues to be a major asset for these e-tailers.
Despite this marked increase in digital exchanges, online luxury retailing will not represent more than 11% of the total luxury market. The global rise is set to be of 113.7% between 2015 and 2020, with profits in the luxury market reaching £50bn worldwide. As the Asian and overseas markets continue to expand as a site of commerce, a majority of transactions will continue to take place in physical stores, where tax free markets of the likes of Hong Kong continue to drive customers in store to conduct their purchases. Brands who are reluctant to open their commerce to online transactions, on the other hand, are predicted to suffer from the lack of online exchanges.