Online will be the main growth source for luxury
Luxury brands have been improving the shopping experience for their customers through their digital presence. Thanks to e-commerce, more luxury brands are now breaking down the physical boundaries of new markets such as China.
Analysts at Credit Suisse indicate that the online sale will be the main growth driver for luxury brands by 2018. This is mainly for the brands which have invested in their own web store and in the “mobile” applications .”
One of the forerunners of digital, Burberry , grew double digit its e-commerce, experts emphasize, convinced that this channel will march at a rate between + 20 % and + 30 % , mainly thanks to the contribution of emerging markets and the US .
The prediction is based on the analysis of the trends from 2008 to 2013, with the web retail growing at an annual rate of 28 % in the past 6 years. To realize the potential of the Net , Credit Suisse cites numbers of a recent initiative involving platforms like Alibaba Taobao and Tmall , as well as e- tailers such as JD and Vipshop . Last November 11, the so-called ” 11 11 single day” – was a day dedicated to promotions . On that date the store Alibaba have reached 9.3 billion dollars with a great part of sales made through mobile purchases.
In 2014 the Chinese were reconfirmed the biggest consumers of luxury goods , despite the weakness in their macro-economy. For many luxury brands, e-sales account for over a quarter of total sales, including purchases in the homeland and those traveling abroad.” In the estimates of Altagamma , China contributes to the consumption of luxury for around 29%.
As for destinations, experts recommend to evaluate the potential of large pools of consumers in cities like Manila , Singapore , Jakarta , Seoul and Bangkok – where the Chinese buy a quarter of their luxury products. The luxury mall in Manila and Bangkok benefit from an increase in annual sales between + 20 % and + 30 % . The capital of Thailand , in particular , is set to become a competitor to Hong Kong , as a shopping destination of the Chinese , who can easily obtain an entry visa.
Indonesia has more than tripled the sale of luxury goods since 2007 , reaching a total of US$ 1.2 billion . If we take into account the contribution of Singapore ( analysts call the area ” Singonesia ” ) , it is estimated that the consumption of luxury goods will rise to US$8 billion in 2018 .
As for the US , which is home to 442 billionaires , about four times those in the People’s Republic, some European brands scarcely present in the States recently reported rates of double-digit growth , thanks to luxury goods consumption spending. Sales to tourists from emerging markets, especially those from Brazil have also had a great contribution to the growth pace of the U.S. luxury market.