Exclusive and luxury labels are finally catching up with the rest of the world and are now beginning to embrace the internet.
Although online sales of luxury goods still only account for 2.6% of a market worth 172 billion euros, they are growing at a rate of 20% per year, according to what Italy luxury foundation Altagamma said in its “Digital Luxury Experience” report.
It was reported late last week that fashion bloggers will help propel online sales of designer clothes, jewels and luxury cars to more than 11 billion euros in 2015.
Brands such as Burberry, Tiffany and Gucci are increasing exposure to social media to connect with a new generation born when mobiles and Internet were already there. And these brands are doing a great job of it so far. Burberry is widely renowned for their extremely successful Facebook page that boasts over 14 million likes.
With such a strong following, it is no surprise that blogs and social media are beginning to be the ones setting trends more than fashion critics, with one out of two customers turning to Facebook or Twitter for advice before buying, the study said. Fashion bloggers are now the ones that get the front row invitations to fashion shows and are asked to host special events and nights. Take Vogue’s most recent Fashion Night Out in London when Jimmy Choo turned to a host of bloggers to take the floor for the evening.
“Fashion bloggers are more and more powerful, especially in emerging markets like China,” Altagamma’s research head Francesco Di Lauro said.
It was also reported that luxury spending on the web also increases in times of austerity, as wealthy customers prefer to buy from the intimacy of their homes rather than in lavish stores. Another reason the top-floor luxury brands need to continue to explore the online space. With endless creative opportunities combined with digital capabilities and leveraging the huge audience that online can bring with it, we think exclusive brands should be focusing on this area right now.