Luxury retailers slow to adopt ecommerce

christinebardwellChristine Bardwell thinks luxury fashion retailers have been slow to adopt ecommerce, trailing behind most of the retail sector.

Harvey Nichols (www.harveynichols.com) for example, has made only a small move into online fashion sales. Others have not invested in an online store at all; Fenwick to note.

In the midst of the recession in 2008, upmarket fashion retailer Net-a-Porter (www.netaporter.com) increased sales by 50%. Albeit a pure play online retailer, Net-a-Porter’s, sales results prove a point: selling luxury fashion online works.

So why are some well known upmarket fashion retailers sitting back whilst etailers like Net-a-Porter take a big slice of the online luxury fashion market?

Some upmarket retailers argue that shopping online takes away from the brand experience that a bricks and mortar store can offer. Others believe extending their reach with an online store will detract from the perceived exclusivity of their stock.

It is not necessary for either of these points to hold true, not if the online store is considered an extension of the brand.

According to Verdict Research, the global luxury goods sector grew by 16.7% in 2008 but predicts it to retract by 6% in 2009. Online retailing has proven resilient in the downturn and seems a good bet for sales growth for the immediate future.

John Lewis (www.johnlewis.com) sees the potential. The retailer recently relaunched its site and expects to grow online fashion sales by 30% this year. Selfridges (www.selfridges.com) also plan on launching online sales next year.

Luxury fashion retailers should not stall online retail plans any longer; the high end online fashion market is immature and there are great gains to be made for those that remember to stay brand focused.

Written by Christine Bardwell, Retail Technology Analyst, Ovum (www.ovum.com)

STAY UPDATED:

WE'LL SEND ARTICLES LIKE THIS TO YOUR INBOX

All data that We obtain about You will be used in accordance with current data protection legislation and Our Privacy Policy.
By clicking Go you confirm you agree to Our Privacy Policy (please tick)