What does it take to survive and prosper in a luxury market where digital is becoming the new centre of a brand's gravity?
Online luxury sales exceeded €20 billion in 2016, representing about 8 percent of the total personal luxury market. We expect this figure to reach €75 billion by 2025, representing one-fifth of the total personal luxury market. For many brands and department stores, digital is the only channel that’s growing, as physical stores increasingly become empty temples of desire and go from being an asset to being a liability.
Today, already 74 percent of personal luxury sales are “digitally influenced,” meaning that your customers, before initiating a purchase, have one or more digital touchpoints with your brand. This number can actually be as many as 15 touchpoints in a journey that is becoming more articulated and less predictable.
It's no wonder that luxury managers have radically changed their attitude towards digital. (..)