Things are changing fast for luxury fashion brands and retailers, as online fashion sales are increasing, new pure plays are emerging and new marketing strategies are altering the way brand awareness is created and strengthened. Luxury fashion has to walk a fine line between limited brand distribution and commercial viability.
Global luxury online sales are expected to rise to €14.4 billion by 2018
Luxury fashion already generates a significant proportion of overall sales online. Despite being the slowest part of the fashion market to do this, luxury fashion is estimated to earn more than €7 billion from online sales in 2014. That's about seven percent of total luxury fashion sales, we expect this figure to rise to €14.4 billion by 2018, resulting in a global market share of about 12 percent.
Acquisitions and mergers are creating new super-players that are making online sales central to their strategy. In March 2015 Italian e-commerce company Yoox acquired the international high-end online fashion retailer Net-A-Porter.