Many of us already have a view that digital is key to driving luxury sales, and as the FT reports, Altagamma, the Italian luxury goods association, and consultancy McKinsey, are launching a report into the digital luxury experience that suggests just that.
The study surveyed more than 300 luxury brands, including the French behemoths LVMH and PPR and Switzerland’s Richemont, plus more than 700 websites and 2.5m online comments, including those from Twitter and Facebook. Researchers also undertook 2,500 interviews across the US, China, UK, France and Italy. Key findings include:
- About 15 per cent of luxury sales directly driven by digital (€25bn).
- As much as 20 per cent of in store sales directly influenced by digital (€34bn).
- Luxury consumers visit more than 4 sites to help them make the right choice.
that works with many luxury brands in this area, including FORTNUM AND MASON, RALPH LAUREN, and The NET-A-PORTER Group Limited whose brands include NET-A-PORTER, the world’s premier online luxury fashion retailer for women, THE OUTNET, the most fashionable fashion outlet, and MR PORTER, the first global online menswear destination.
Mark Haviland, MD of Rakuten LinkShare UK comments:
“The findings of the Altagamma/McKinsey study, as reported by the FT have confirmed what we suspected; that digital will play a massive part in the growth of the luxury sector. This supports evidence that we are seeing from our own network – that luxury is booming online and our publishers are driving large volumes for brands.
As the report reveals, luxury consumers visit more than four sites to help them make the right choice, so ensuring your brand appears on a number of sites is crucial. The consumer buying cycle is complex, and brands must be in the right place at the right time to prompt a consumer to make a purchase and tablets of course play a massive role here too! Revealed also is evidence that well placed offers and loyalty deals are in demand. Combine this approach with good relationships with trusted publishers, and brands can reach the volumes they desire, without infringing on brand equity.
The idea that online shopping is for bargain-hunters has been blown out of the water now. Luxury should no longer fear digital, and many have clearly already embraced this.”