The digital opportunity for luxury retail
The luxury goods market continues to shine. The overall luxury market grew by 5 percent at constant exchange rates in 2018 to an estimated €1.2 trillion globally, with overall positive performance across all segments. This trend is likely to continue- led by the continued rise of online channels, flourishing luxury demand from Chinese consumers, and increasing influence from younger generations of consumers.
At the same time, varying economic trends, new technology, and evolving consumer preferences are continuously changing the competitive landscape presenting newer opportunities and challenges. The digital revolution continues to disrupt “business as usual” in retail in general and luxury in particular.
Today, more than 80% of luxury sales are influenced by digital, whether consumers are looking online and buying in a physical store or directly online. Word of mouth continues to be the first lever of influence for the luxury consumer and today occurs for two-thirds through digital platforms, and more than 70% of consumers connect to their favorite brands through social platforms.
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