eCommerce has been shaping much of the world’s economy recently. One of those that are profiting from this is the global luxury industry. Further helping are Chinese travellers. This industry is seen to have a recent growth of six percent, after a rather stagnant 2016.
Total market value of the industry is at a cool $304 billion. This is in part due to much activity in the Chinese market. China leads the way for global luxury spenders. Also helping this growth are the global millennial consumers.
The growth of the Luxury market
The Chinese luxury market stands to grow by 15 percent, according to Bain and Company. The Asian market is also growing at six percent. This growth does not include Japan. Driving this growth is the emergence of online stores, which are challenging physical stores in the industry.
As the luxury market continues to rise in China, U.S. and UK traders should take note. The opportunity is there, thanks to eCommerce. Even without physical stores, luxury traders can take advantage of this opportunity that is opening up in China.
Along with this, luxury brands have to look into new sales channels to meet the demands of a growing eCommerce market. Bain already sees this trend, as it notes that physical stores might continue to decline while online stores grow in number. Some brands might also combine physical and online presence in order to maximize profits.
With this, brands would be able then to serve travelling customers anywhere. Physical stores are limited by location. Online stores have the advantage of being accessible to people anywhere. For travellers, this would be a benefit. This shift in strategy just might make the luxury market have a strong growth, if brands could meet this growing opportunity.
eCommerce can be seen here as the driving force for the luxury market. It shows that many industries can have growth within it if they overcome the challenges.
If you sell luxury products have you considered selling to the East? Let us know your thoughts below.
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