The Future of Online Luxury Retail

Online luxury sales are expected to triple as a proportion of the total global luxury market sales by 2025, reaching $91 billion USD. 

Consumers’ online experience influences at least 40 per cent of all luxury purchases.

Luxury brands and high-end retailers need to identify new ways to engage with affluent consumers online. It is particularly important to avoid cannibalising performances of their offline retail stores.

Online sales have so far not been able to drive the same level of upsell opportunities than their offline counterparts. Research shows that luxury consumers spent overall less per purchase when buying online.

Luxury brands first need to assess the contribution that digital currently has on their total sales performances and consumers’ purchase behaviors.

High-end businesses then need to define a long term strategy to utilize digital as an impactful branding and sales component.

Two broad online luxury retail approaches should be explored to drive digital sales: self-owned platforms and outsourcing to third-party resellers.

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