1. Title
Luxury brands: the online retailing choice
2. Background
• Luxury & E-commerce
E-commerce’s outlook is promising in regards to the figures. Indeed, it represented 0.8% of the luxury market in 2005, to then reached 6% (€14 billion) nine years later. By 2025, it is forecasted that 18% of the luxury market (€70 billion) would come from e-commerce confirming the exponential growth of this retail channel. Moreover, only 1% of the worldwide e-commerce is related to the luxury market, and luxury e-commerce is growing by 27% each year whereas in-store market only 7%. Therefore, this service still has a strong growth potential (Remy, Catena, Duran-Servoingt, 2015).
Indeed, e-commerce is considered as a service for businessmen and women, …show more content…
First of all, there is a difference between countries’ online purchase behaviour. For example, United Kingdom represents 11% and Brazil 2% of the e-commerce luxury market. Then, an essential trend must be considered as 50% of this online market concerns clothing and accessories. In addition, performance depends on the product; cosmetics and ready-to-wear reach 7.2% of online purchase but watch and jewellery only 2.1%. Finally, the more expensive the products the more difficult they are to sell. For instance, Chanel, Cartier and Dior only sell 3.9% of their products online, whereas Burberry 7.5% or Longchamp 8.5%. (Remy, Catena, Duran-Servoingt, …show more content…
The next step would be to find the best strategy luxury brands should follow for the products they sell. Indeed, what should be the products’ selection luxury brands must make to decide whether to sell on their own websites or on multi-brand retailers?
4. Methodology
This study wants to give managers a clear overview of what strategy to adopt when selling luxury products online, and the current situation of the industry. Indeed, luxury e-commerce is quickly growing and trends have to be up-to-date in order to react accordingly.
Thus, to count and describe the specific features of these problems, a quantitative research based on a questionnaire given at least to 100 people, being part of a panel who shop on luxury store online and from both the city and the countryside, will provide more information about the consumers’ shopping behaviour on luxury e-retailers, and secondary data found on luxury goods e-commerce will highlight the online brands’ strategy. Moreover, a content analysis of 50 luxury mono-brand retailers’ websites as well as luxury multi-brand retailers will identify the products sold on each one of
Luxury brands: the online retailing choice
2. Background
• Luxury & E-commerce
E-commerce’s outlook is promising in regards to the figures. Indeed, it represented 0.8% of the luxury market in 2005, to then reached 6% (€14 billion) nine years later. By 2025, it is forecasted that 18% of the luxury market (€70 billion) would come from e-commerce confirming the exponential growth of this retail channel. Moreover, only 1% of the worldwide e-commerce is related to the luxury market, and luxury e-commerce is growing by 27% each year whereas in-store market only 7%. Therefore, this service still has a strong growth potential (Remy, Catena, Duran-Servoingt, 2015).
Indeed, e-commerce is considered as a service for businessmen and women, …show more content…
First of all, there is a difference between countries’ online purchase behaviour. For example, United Kingdom represents 11% and Brazil 2% of the e-commerce luxury market. Then, an essential trend must be considered as 50% of this online market concerns clothing and accessories. In addition, performance depends on the product; cosmetics and ready-to-wear reach 7.2% of online purchase but watch and jewellery only 2.1%. Finally, the more expensive the products the more difficult they are to sell. For instance, Chanel, Cartier and Dior only sell 3.9% of their products online, whereas Burberry 7.5% or Longchamp 8.5%. (Remy, Catena, Duran-Servoingt, …show more content…
The next step would be to find the best strategy luxury brands should follow for the products they sell. Indeed, what should be the products’ selection luxury brands must make to decide whether to sell on their own websites or on multi-brand retailers?
4. Methodology
This study wants to give managers a clear overview of what strategy to adopt when selling luxury products online, and the current situation of the industry. Indeed, luxury e-commerce is quickly growing and trends have to be up-to-date in order to react accordingly.
Thus, to count and describe the specific features of these problems, a quantitative research based on a questionnaire given at least to 100 people, being part of a panel who shop on luxury store online and from both the city and the countryside, will provide more information about the consumers’ shopping behaviour on luxury e-retailers, and secondary data found on luxury goods e-commerce will highlight the online brands’ strategy. Moreover, a content analysis of 50 luxury mono-brand retailers’ websites as well as luxury multi-brand retailers will identify the products sold on each one of