By 2025 global online sales of luxury brands are expected to increase to 70 billion USD. One clear trend is the move from conventional stores to online stores, which will definitely be the most basic prerequisite of luxury retail within the next few years. Therefore, digital marketing is going to form the core of the luxury retail business.
For years, luxury products were sold in luxurious brick-and-mortar stores. Now the shift towards e-commerce is being driven by a change in consumers. Thirty percent of the market consists of millennials and generation Z. By 2025 these young people will form 40% of consumers of luxury products.
Shopping online will grow
In order to be able to keep pace with this group, sellers will have to adapt continuously to whatever new retail technology becomes available. Another ever-evolving aspect managers of luxury brands will need to keep in mind is consumer mindsets, according to the business2community.com website.
Conventional stores will not disappear
On the other hand, consumers seeking luxury products will still value the personalised shopping experience of visiting a traditional store. E-commerce will not completely replace brick-and-mortar stores; it will merely supplement them. This is the main difference between non-luxury and luxury brands when it comes to building digital presence.
Traditionally, personalisation has been delivered by shop assistants and customers meeting face to face. However, augmented reality and AI will be deployed to improve customer experience and meet their expectations. Customers will be able to rely on their devices to guide them through purchasing decisions. AI will enable sellers to predict what else a customer would probably like to purchase.
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