DW SEPTEMBER - OCTOBER 2019

Special Feature
Luxury goods sales are
growing nearly threetimes
faster online than in
physical retail, at 14% as
compared with traditional
retail at 5%. A Consumer
Insight Report published
by Deloitte reveals that
millenials, which account
for 83.1 million people,
have made the switch to
online shopping
have shied away from adopting digital
platforms to push sales. Instead they
opted for prime location stores in some
of the most cosmopolitan international
cities, state of the art fixtures and fittings
which added to the grandeur and
opulence of the brand along with ample
number of sales staff to assist customers.
However, the digital deluge has
spared no one, and luxury brands are
no exception. With most consumers
preferring the convenience of online
sales, luxury brands are doing their
level best to catch up. Euromonitor International
published a report that said
luxury goods sales are growing nearly
three-times faster online than in physical
retail, at 14 percent as compared
with traditional retail at 5 percent.
There has been a significant shift
from in store sales to online sales with
each brand offering e-commerce services
through their respective websites.
LVMH, parent company of world renowned
handbag brand Louis Vuitton,
launched its own multi-brand website
known as 24 Sevres while maintaining
separate websites for its house brands.
Barneys too was able to expand its online
sales to $200 million from $18 million
since February 2017.
With the emergence of multi brand
platforms like Shopbob, Moda Operandi
and Net-a-Porter, high end brands
prefer to showcase their products as
it eliminates overhead costs while directly
targeting their consumers. A
Consumer Insight Report published by
Deloitte reveals that millenials, which
account for 83.1 million people, have
made the switch to online shopping.
104 september-october 2019 DiamonD WorlD