Digital sales of luxury goods were initially slow to take off, trailing many other sectors, but online luxury shopping now is gaining rapidly, spurred by sales of lower-end luxury goods and by younger shoppers accustomed to purchasing practically everything online.
While an overwhelming majority of luxury sales are still being completed at brick-and-mortar stores, sales via online channels are growing at a faster pace.
How do millennial women define luxury? A lot of it depends on how much money they have. The more money they have, the more likely they are to say that brand names are a key signifier of luxury.
Once shunned by luxury brands, online retail channels in China increasingly present the best option for companies to drive revenue growth.
A survey of millennials in four markets around the world finds that attitudes and behaviors don’t follow a simple pattern, reflecting millennials’ continuing financial challenges.
Fashion brand Michael Kors agreed to buy Jimmy Choo in a deal that values the luxury shoe label at $1.35 billion, continuing the reshuffle of the luxury sector.
Most luxury buyers still prefer the in-store experience for the reasons they always have: Materials and fit are often important, and attentive customer service comes with the territory. But digital channels are playing a larger role in the path to purchase.
A significant segment of China’s consumer class is moving upmarket from cheap goods sold on marketplaces. With its stake in luxury marketplace Farfetch, JD.com, a China-based ecommerce platform, is positioning itself to capitalize on this growing market segment.
It's a challenging time for the luxury sector. Michael Kors is the latest brand to show the strain, reporting declining sales and outlining plans to close up to 125 stores.
The luxury retailer is increasing the pace of new jewelry introductions, and aims for them to eventually represent more than 10% of sales. It’s also introducing more products under $500.