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Interesting Facts About Luxury Fashion
Luxury Fashion outlets have long been a staple of shopping districts everywhere in the world, and in the U.S. the sector is worth around $68 billion. Louis Vuitton, Chanel, and Hermes are three of the biggest players in the luxury market – all with a robust online presence. The largest segment within this is the Luxury Apparel which accounts for nearly 75% of sales.
Surprisingly, the Luxury Fashion industry has been slow to adopt an e-commerce presence with a minuscule amount of their total sales coming from online purchases, worldwide just 9% of total sales are from online channels. Many brands are still struggling to replicate the luxury in-store appeal using the internet. However, there is good news for the category in general, high-end spending is set to triple by 2025.
Luxury brands moving into e-commerce do have some tricks up their sleeve to try and provide customers with the rich in-store experience. A primary tool by the big names is to try to use storytelling mixed in with a pinch of legacy to entice customers to purchase online. Other brands are using e-commerce less traditionally with an online-to-offline approach where customers are encouraged to browse online but then book a personal consultation to finish the purchase in-store. Gucci has begun offering online client assistants who are at the client’s beck and call to provide style advice. Exclusivity is also another critical approach, the concept of “Extremely Important People – EIP” has been introduced – this involves home shopping assistants and a “You try, we wait”delivery service. One UK brand is also offering 90-minute delivery to certain London postcodes for those unwilling to wait. Generally, Luxury Fashion is also seeing a transition towards complimentary gift packaging, free shipping, and free turns – which is fantastic news for consumers of this category.
