- Danielle Wightman-Stone |
Online pureplays, like Net-a-Porter, Farfetch and Yoox, are set to hold a 30 percent share of the online global luxury spend by 2020, according to a new report.
Verdict’s latest study is suggesting that the global online luxury market will more than double in the next five years as major brands continue to increase their range availability online, and players which were reluctant to make websites transactional, such as Tom Ford, succumb.
It forecasts that the pureplay market will outpace total online by 65 percentage points between 2015 and 2020 as online retailers invest in customer engagement and in differentiating their offer. With online pureplays such as MyTheresa, Yoox and FarFetch driving future online growth as they continue to grow their branded offers, differentiate via selling unique brands and launch country-specific transactional websites, which will allow them to reach a larger customer base.
The report predicts that the online luxury pureplay market will grow by 178 percent between 2015 and 2020, reaching almost 15 billion euros and a 30 percent share of total online spend.
Online pureplays to hold a 30 percent share of online global luxury spend by 2020
Verdict retail analyst Jessica Fioriti explains: “More consumers will be tempted to purchase high value items from online pureplays due to the variety of brands and being able to shop across them from the convenience of the home or on the move, and currently their sites are typically better than the brands.”
However, the report does add that it isn’t all about choice, as in order to compete with luxury brands and chip away at Net-a-Porter's 13.6 percent share of the pureplay market, the likes of Yoox and Avenue 32 must continue to “invest in service, the shopping experience and customer engagement”, says Verdict.
Verdict retail analyst 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.”
Images: Net-a-porter and Farfetch websites