Dive into the future of luxury retail with our analysis on the booming online market set to reach $91 billion by 2025. Discover how luxury brands are revolutionizing the digital space to enhance consumer experiences and why optimizing your high-end store's online presence is crucial. Get expert tips on elevating your luxury brand in the eCommerce realm.
A recent analysis from Luxe Digital projects that by 2025, the amount of sales in the luxury industry that are conducted online will have tripled to $91 billion. The report also found that a consumer’s online experience influences at least 40% of all luxury purchases. If you own a high-end store, you should look for innovative methods to interact with wealthy clients online.
How can you position yourself to increase sales of luxury goods? This article explains how to position your luxury brand successfully.
What is luxury eCommerce?
Luxury eCommerce is the online sale of upscale, frequently designer, products. Companies that sell high-end goods and services provide their clients with a distinctive shopping experience, complete with customized recommendations and distinctive packaging that conveys an air of grandeur from the website to the customer's door.
Luxury eCommerce examples
Homepage of luxury retailer and Shopify Plus merchant, Khaite.
Khaite’s luxury eCommerce experience starts with its website design. Sophisticated aesthetics greet you as soon as you arrive on the clothing brand's homepage. The website for Khaite has an elegant, upscale appearance with a vibrant color scheme that exudes exclusivity. The photography has an editorial feel similar to that of a fashion magazine, and the photographs are outstanding.
The checkout page for Khaite still features brand lettering and a black background. Additionally, it is more efficient thanks to quick checkout choices like Shop Pay.
Khaite’s checkout page reflects its brand aesthetic.
In addition to its eCommerce website, Khaite uses Instagram to present new styles. With the hashtag #Khaite, it has received over 27 million views on TikTok due to its link with models and celebrities.
Khaite gets over 27 million views through its hashtag on TikTok.
People are tagging Khaite's elegant clothing in fashion shows, celebrity looks, and outfits of the day, which expands the brand's internet visibility.
Homepage of shapewear retailer SKIMS
SKIMS, founded by Kim Kardashian, offers a luxury experience by providing innovative shapewear, underwear, and loungewear. It has a sleek, user-friendly website. To demonstrate the universality of the company, a variety of models are used to highlight each product.
A large portion of SKIMS' opulent image is attributed to influencer Kim Kardashian, who is known for her glitzy attire, pricey homes, private planes, and an all-around desirable lifestyle. However, the firm also took a risk by working on promotional projects with well-known fashion brands like Fendi and Grammy Award winner SZA.
Homepage for luxury watch brand Bremont.
Bremont is a renowned watch company based in the UK. With flawless photography and video, the brand's website narrates its rich history.
Bremont supplies timepieces to militaries all around the world. Additionally, they collaborate with prestigious companies like Williams Racing, one of the top Formula One teams in the world. The brand's image and quality standards are reflected in every element of the website, including the buttons, icons, colors, and fonts.
Big Luxury Jewelry brands, including Rolex Retailers, choose the Shopify platform. Moreover, Rolex itself recommends this platform in its vendor guidelines.
This is due to its adaptability to the requirements of brands and the convenience of business control for all stakeholders. Read our case about Mjewelry.
Luxury eCommerce tips
1. Target Millennials and Gen Z
A new normal of slower growth has been attained by the luxury goods market. For brands to be successful, they must anticipate and meet the wants of younger consumers.
Research by Bain & Company and Farfetch estimates millennials will represent 40% of the global luxury market by 2025. According to analysts, social media and the recent upsurge in wealth creation are also factors in Gen Z consumers' attraction to luxury goods.
Luxury fashion firms need to reconsider their product offerings and distribution methods if they want to connect with millennial consumers. They need to concentrate on the products that millennials are most inclined to purchase, which are currently upscale yet comfortable goods.
2. Tell a good story
Social media is one of the most common ways buyers discover new products—and you can help them love your brand by engaging with them meaningfully. This is particularly important when they are first discovering your brand. Make engaging stories that inspire people to like and comment on your posts to increase engagement.
Responding to direct messages or comments is the other aspect of interaction. Seize the chance to showcase your brand's individuality by being helpful and expressing how much you value their business. Luxury brands have a significant edge over other businesses: a rich past. With a history spanning over a century, Chanel is the second most well-known luxury brand globally.
The brand shares its stories through the Inside Chanel series on its eCommerce site. It features 32 short films telling the story of culturally defining moments, such as how No. 5 came to life.
Browsers can scroll through 32 short films on the Inside Chanel landing page.
Despite its rich history, Burberry takes another approach to storytelling with Burberry Acoustic. British musicians are invited to play live by the business, which then advertises the event on its website and social media accounts.
Got a long brand history? Here are some ideas:
- Identify pivotal moments within your brand and create a little film around them.
- Share details on the production process that goes into your best-selling products.
- Include influencers or celebrities in your store, then post the content on social media.
3. Offer fast shipping or pickup options
For luxury firms to provide a smooth multichannel buying experience, they need to increase their eCommerce spending. Offering quick and free shipping is one of the best ways to stand out; it's not groundbreaking, but it makes a big difference.
Several upscale eCommerce sites have adopted same-day delivery services as a result of the large number of brands that do so in numerous areas. For overseas orders, Louis Vuitton waives tariffs and provides free shipping or in-store pick-up and return options.
4. Personalize the journey
For a while, the luxury market has recognized the value of customization. Some 70% of consumers spend more with companies that offer personalized customer experiences. High-end consumers are accustomed to receiving personalized attention in upscale establishments. They receive VIP treatment, including access to personal shoppers and invitation-only shopping occasions.
For customers with last-minute fashion emergencies, some stores also provide personalized selection delivery services. Another reason why millennials prefer to visit a store first is the individualized experience. However, users may now enjoy a comparable personalized experience online thanks to advancements in artificial intelligence and machine learning.
In an increasingly global eCommerce market, casual luxury brand Rebecca Minkoff personalizes its global experience with IP geolocation. It's a wise tactic because unforeseen expenses like conversion rates can significantly affect how likely it is that a client would abandon their cart.
The upscale online store automatically changes prices in more than 70 currencies and over 100 countries. Customers will then be fully aware of their costs before adding items to their carts. Additionally, customers can choose the currency and region of their choice.
5. Be a digital-first brand
Luxury fashion brands that are born digitally have an edge. These companies enjoy the advantage of having won over millennial consumers' hearts and minds. Additionally, they are relocating into actual retail space.
Net-A-Porter's sibling website is called Mr. Porter. It serves another expanding segment of the premium market: men's fashion and lifestyle luxury companies. Like Net-A-Porter, Mr. Porter offers premium omnichannel assistance to its top customers, known as EIPs (or extremely important people).
A personal shopper who is committed to the service is provided, along with early access to sales and new debuts at pre-arranged pricing. Non-EIPs can contact customer service or fashion consultants by phone, email, or live chat around the clock. Wish lists and carts for customers using the app are automatically synchronized with Mr. Porter's online accounts. The mobile buying experience runs smoothly.
Clients can get VIP treatment without having to ask for it. eCommerce automation can help you set up an always-on VIP experience by identifying and segmenting important shoppers with back-end workflows. One of these is a reminder to send personalized notes to your VIPs once they spend a particular amount in your online business.
Retailers of luxury fashion, take note. When used properly, eCommerce may provide a similarly captivating shopping experience for customers. additionally, technology is improving daily.
Adapting to the new wave of luxury shopping
Traditional brands must change and adapt our list of luxury purchasing guidelines if they want to expand online. The success of Chanel and Louis Vuitton in eCommerce is evidence of this.
Luxury fashion enterprises must prioritize social and environmental responsibility, modify their product portfolio to cater to an expanding clientele, and offer enhanced virtual shopping experiences. By combining these strategies, you can successfully navigate eCommerce and future-proof your luxury fashion firm.