Online Luxury Spending Will Rocket Worldwide By 2020
Online luxury spending will rocket worldwide by 2020 according to recent reports. The market is expected to at least double over the next 5 years as the big brands carry on increasing their online collections and the companies that were trying to steer away from the online market are beginning to realise that this is where the big money could be and their online presence grows.
Although the luxury goods market is expected to grow 113.7% in the next 5 years to just under £50 billion, the online share of this will still be under 11%. The majority of luxury product spend takes place while shoppers are abroad in tax free markets such as Hong Kong where the shops are preferred and consumers are enjoying the experience of shopping in an actual store rather than online.
However some recent research by Verdict suggests that the online global luxury goods market will see growth of a whopping 178% over the next 5 years with a 30 percent share of the total online spend. Verdict’s Jessica Fioriti said: “More consumers will be tempted to purchase high value items from online pureplays due to the variety of brands and convenience of shopping across different labels and markets.” Another analyst at Verdict, Honor Westnedge added “Investment in enhancing loyalty among shoppers is particularly important now, as luxury brands are starting to invest significantly in the channel themselves, having recognised the sales growth potential provided, and have the benefit of integrating online and offline platforms”