The traditional image of luxury retail is one of a high-end brick-and-mortar business often located in an exclusive historic or architecturally exquisite building in a vibrant city center. Luxury brands have long counted on brick-and-mortar to bring across their key message of exclusivity. However, e-commerce is slowly gaining traction also in the luxury retail segment. As Generations Y and Z are reaching the age of full-income earners, the percentage of affluent and at the same time digitally savvy consumers is rising.
Although the bulk of sales in the global Luxury Goods market is still produced via offline channels. The share that online channels contribute is constantly rising. Digitally well-developed economies, such as China, already reach online shares above 30% in the segment. In Europe the awareness of certain online luxury stores is already quite high and still rising.
Awareness of more than 50%
Most consumers in the three important European markets Germany, France, and the UK are aware of at least one e-commerce brand in the luxury goods segment. The most well-known luxury online store in the respective country each reaches an awareness of more than 50%.
UK consumers are the most active
British consumers seem to be the most active online luxury shoppers in the comparison. At least as far as brand awareness figures suggest. The top three most well-known brands among British online shoppers – Harrods, Harvey Nichols, and Selfridges – all reach percentages above 50%. Moreover, Harrods has the highest brand awareness of all brands in the comparison.
French know a smaller number
French online shoppers – on the contrary – seem to know a smaller number of different online luxury brands. The top two in France – galerieslafayette and veepee – reach an awareness of 59% and 37%, respectively. However, all other brands are known to less than 15% of French online shoppers.
International brands are in midfield
What strikes the eye is that consumers in all three countries are most aware of local online store brands. International brands are in midfield in all three countries in the comparison, while it is a local player each that leads the respective country ranking. If the trend towards more online shopping in the segment continues, brand awareness in luxury e-commerce is also likely to increase in the future.