The e-commerce channel is going to be more and more popular, for luxury items as well. In 2016, online shopping in the luxury sector (apparel, accessories and beauty) drove a 20-billion-euro turnover, that is, 8 per cent of total. According to “The age of digital Darwinism” research, carried out by Mckinsey & Company, in 2020 the online sales and distribution channel will be worth 37 billion euros (12 per cent), and in 2025 it will go up to 74 billion euros (19 per cent). In addition to that, luxury shopping will increase by over 50 per cent, moving from 254 billion euros, in 2016, up to 383 billion euros in 2025 (+50,8 per cent). Young consumers, more and more focused on digital shopping, will drive a boost in e-commerce, but also customers over 50 are progressively getting used to the new trend. Beauty products, apparel and accessories, such as bags and small leather goods, will most benefit from the web channel business. As for buyers, the ones who spend less and search for affordable luxury are quite oriented towards online shopping, more than hard luxury buyers do. Meanwhile, players tackle new markets. Farfetch, an online fashion retail platform, has recently signed a deal with Chalhoub to start up distribution and supply in the Middle East: their top managers point out, while talking to Business of Fashion, that expansion in the Asian markets is bound to drive a growth in revenues and the stock listing in New York.
E-commerce to nearly quadruple revenues by 2025, says McKinsey. Farfetch lands in the Middle East
