Luxury Brands Boom Online
High End E-tailers Prosper
They were slow to begin selling their goods online, seeing it as the domain of teenagers and the middle class, not expecting upper class customers to part with $3,000 for skirts and $5,000 for suits over the Internet. If you're not living near Rodeo Drive, Fifth Avenue or Magnificent Mile, chances are, your closest high-end fashion source is online. Luxury garment brands and retailers have now embraced the web and their sales are growing at a faster pace than that of other online retailers.
Trend Themes
1. Luxury E-commerce - The continuous growth of sales of luxury brands and retailers online creates opportunities for companies to follow the trend and focus on enhancing customers' online shopping experience, such as incorporating smart mirrors or AI-driven styling suggestions.
2. Digital Marketing for Luxury Brands - As luxury brands continue to sell online, digital marketing to target the right customer is critical to succeed, and AI-powered marketing tools can provide an opportunity to improve targeting and personalization.
3. Sustainability, Transparency, and Authenticity - As consumers become more conscious about environmental sustainability and ethical production practices, luxury brands and retailers need to embrace transparency and authenticity in their business practices to differentiate themselves.
Industry Implications
1. Fashion Retail - Luxury retailers and brands can implement digital innovation in-store to create an omnichannel experience that allows customers to explore products, make purchases and access virtual content from the comfort of their couch.
2. Digital Advertising - The rise of luxury e-commerce offers an opportunity for digital advertising companies to leverage data to reach high-end consumers through sophisticated targeting and personalized messaging.
3. Artificial Intelligence - AI technologies can help luxury brands enhance customer experience through personalization, product recommendations, and smart virtual assistants that can facilitate the online shopping journey.