Top Luxury Brands Are Neglecting Leading E-Commerce Markets

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Reports have just surfaced showing that the world’s top luxury brands only offer e-commerce to about 45 percent of leading markets.  According to Luxury Daily, fewer than half of the 50 luxury brands studied have online stores for the BRIC nations (BRIC is an acronym for Brazil, Russia, India and China — which are all developing fashion capitals). Also, 21 of the brands reach less than 1 billion consumers via e-commerce.

“There’s been a huge expansion in market around the world, and countries that weren’t previously consumers of luxury goods are now quite big consumers,” Rurik Bradbury, CMO of Trustev, which published the “Where in the World Do Luxury Brands Sell?” report, told Luxury Daily.

“You would think with the Internet being theoretically accessible available everywhere, that they could sell to every market where there’s demand,” Brabury said. “But what we saw in the study is these huge markets like Brazil, India, Russia, Eastern Europe that don’t have many options.”

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The “Where in the World Do Luxury Brands Sell?” study looked at the world’s top 50 largest luxury brands across 20 leading markets — including Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Poland, Russia, Saudi Arabia, South Korea, Spain, Thailand, Turkey, the U.K. and the U.S. Between May and June of 2015, online shoppers visited each of the 50 brands’ sites, attempted to make a purchase and noted the availability of e-commerce.

It showed that consumer can shop for brands Diane von Furstenberg, Oscar de la Renta, Jimmy Choo and John Varvatos online in 95 to 100 percent of markets studied. Unfortunately, a number of brands — such as Canali, Carolina Herrera and Céline — sell in none.

“You’re leaving huge amounts of revenue and also customer happiness on the table. Because you’re essentially saying to the people in those countries that if you want to buy from us, you have to travel a long way to do it,” Bradbury said.

Back in April, Chanel announced plans to launch an e-commerce platform sometime in 2016.

Courtesy Fashion Times

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