SURVIVAL OF THE FITTEST

According to The Age of Digital Darwinism, a 2018 report by management consulting firm Mckinsey & Company, online sales of luxury goods are expected to more than triple by 2025, to about £74b. This means that nearly one-fifth of global luxury sales will take place online. Here are three other findings from the report

1. Digital influence

Already, nearly 80 per cent of luxury sales today are “digitally influenced”, meaning that consumers are likely to seek advice from peers or influencers online before purchasing, and post about their purchases afterwards. Those who begin and end their entire customer journey offline represent just 22 per cent of all luxury shoppers.

2. Luxury online

Watches and jewellery trail apparel and accessories when it comes to online sales of luxury goods, because consumers are more inclined to buy offline when it comes to items with higher price points.

3. Surface area

Luxury shoppers across different age groups are avid users of the internet and social media, and 98 per cent of them have smartphones (as compared to 65 per cent of the general population). This implies not only do luxury brands have to engage these customers online, they also have to figure out how to convey their exclusivity effectively on the relatively small real estate of the smartphone screen.