Tugba Sabanoglu
Research lead covering Non-food CG & Retail
Online personal luxury goods market - statistics & facts
Made up of luxury apparel, footwear, fragrance, jewelry and watches, the luxury personal goods market has conventionally depended on sales in physical stores as the luxury shopping experience is integral to luxury ownership. Today, the personal luxury goods market has a value of 217 billion euros worldwide. Triggered by the coronavirus (COVID-19) crisis and the further penetration of e-commerce into the luxury sector, however, luxury brands have been tapping into online retailing both via direct-to-consumer channels and e-commerce platforms, which have gotten quite popular with luxury shoppers. In 2020, about one quarter of the value of global personal luxury goods market was attributed to online channels.
It is fair to say that online sales of luxury goods are greatly helped by e-commerce platforms and marketplaces where luxury shoppers are offered a coterie of luxury brands. Farfetch is among the popular online marketplaces for luxury goods with more than 10 million active customers in 2020. The UK-based luxury marketplace was among the industry's leading brands based on revenue, ranking side by side with luxury conglomerates like LVMH, Kering, and Richemont. Farfetch’s online popularity placed the platform among the fastest growing luxury retail websites in the United States in 2020.
E-commerce enters the luxury sector
According to estimates, younger generations are expected to be the main actors of the luxury goods market by 2025, with millennials accounting for half of the value of the luxury market. There is little doubt that with such big demographic shifts in the consumer base, the luxury shopping experience is bound to move towards a more digital future and cater to the needs and habits of the generations born into the digital world. For many brands that had to shut down their physical stores temporarily amidst the coronavirus (COVID-19) pandemic restrictions, e-commerce sales have already taken off. The Kering Group, which owns the brands Gucci, Saint Lauren, Balenciaga, and Bottega Veneta, doubled its e-commerce sales in 2020 compared to the pre-pandemic figures. Richemont Group, which operates the e-commerce platforms for luxury personal goods like Watchfinder and Yoox Net-a-Porter, reported sustained sales revenue for its online distributors segment in 2020 and 2021.It is fair to say that online sales of luxury goods are greatly helped by e-commerce platforms and marketplaces where luxury shoppers are offered a coterie of luxury brands. Farfetch is among the popular online marketplaces for luxury goods with more than 10 million active customers in 2020. The UK-based luxury marketplace was among the industry's leading brands based on revenue, ranking side by side with luxury conglomerates like LVMH, Kering, and Richemont. Farfetch’s online popularity placed the platform among the fastest growing luxury retail websites in the United States in 2020.
