Home / Knowledge / News / Fashion / Five top brands capture 75% share of online luxury sales
Five top brands capture 75% share of online luxury sales
26
Sep '13
Luxury retail is defined by the total, tactical experience whether shopping in stores or online.  Consumers expect to be wowed by every interaction, and they expect the same perfection, personal attention and level of service whether on a brand's website, social media page or in-store, and whether on a tablet, smartphone or laptop according to a study just released by PM Digital, a New York based digital marketing agency.

This is among the findings in PM Digital's Trend Report: Luxury Brands Online, which analyzes the state of luxury e-tail and predicts how emerging digital platforms and social media trends will impact the industry.

"One of the aspects that makes this report so interesting is the way in which search and social marketing practices of luxury brands differ from that of other retail categories," said Suzy Sandberg, President of PM Digital's Global Digital Media division.

"Whereas some luxury brands may be slower than non-luxury retail brands in adopting ecommerce, the sophistication of their social marketing and fan growth counts far outpaces their wider retail industry counterparts. This is just one example of how the luxury category behaves differently and why it's important to drill deeply into this particular vertical in order to understand the nuances that support their unique goals."

According to the report, all digital channels- paid and organic search, email, social and display- will have a major effect on luxury brands as they increasingly shift toward mobile and omnichannel offerings. Mobile will become even more integrated with the live experience of in-store shopping than online already is, since consumers can now access their favorite brands at any time by reaching into their pocket or purse.

Additional key findings from the study reveal:

- Traffic to luxury brand sites is up 10% in 2013 YTD.
- The five largest luxury brands (Ralph Lauren, Coach, Michael Kors, Louis Vuitton and Gucci) captured 75% of traditional online market share and 68% of mobile market share.
- Search engines remain the largest source of traffic to luxury brand sites, accounting for 51% of all visits.  This dependency outpaces that of the broader apparel and accessories category.
- Nearly all major luxury fashion companies now offer e-commerce, but too many are still leaving traffic on the table by not running paid search campaigns.
- Handbags and shoes are the most popular products driving search clicks for luxury brands.  Most of these searches include brand words, indicating a high degree of brand loyalty and decisiveness, although a higher-funnel marketing channel may also have driven them to search.
- Luxury brands are largely absent on Google Product Listing Ads at this point. However, luxury products often appear with department store or multi-brand reseller's Product Listing Ads.
- Luxury consumers are among the most-connected demographic groups, with twice the smartphone ownership rate as the general population.
- Social media accounts for 6% of traditional web traffic to luxury brands, and nearly all of it stems from Facebook and YouTube.  Many brands have also achieved sizeable, and still growing, audiences on Twitter, Tumblr etc. Engagement on these sites is mainly disconnected from visits to brand sites, but that is less true in a mobile environment.

PM Digital


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search