A promising trend has been the shift to ecommerce in this industry, as high-end luxury brands expanded beyond simply using their sites as a showroom, while mid-level brands focused on improving the customer experience.
And it's not a moment too soon: Consumers have become more accustomed to shopping online, and consumers of global luxury brands are among them. In an International Institute of Management Development poll, 72% of participants said global luxury brands should seriously consider moving to selling online if they don’t already.
While the pandemic may have created struggles for the fashion and luxury goods market, the future looks much brighter.
In the fall of 2021, Bain & Company released its Luxury Study, revealing a v-shaped recovery for the industry in 2021. And they're estimating future sustained growth of 6-8% annually.
The excellent news for fashion and luxury goods ecommerce? Much of this growth is being driven by younger consumers, particularly in China and the U.S. In fact, millennials and Gen Z are expected to account for 70% of global luxury goods purchases by 2025.
The challenge for many luxury goods and fashion brands will be to engage these younger customers.