3 Reasons Why the Luxury Goods Market Needs To Accelerate Its Digital Transition
Luxury watch-seller Styleout Watches establishes that a digital adaptation is necessary to the times
For so long, luxury brands have been reluctant to sell their products online. The fear is that moving sales to a digital platform will reduce the exclusivity and eliteness associated with luxury items. But in fact, e-commerce is the way of the future, even for luxury brands. Here's how luxury watch-seller Styleout Watches utilized the power of digitalization and gave us three reasons why the luxury economy needs to accelerate its digital transition.
Mohit Mirchandani
Data reflects a transition to online sales
Who can argue with data? A recent study shows that e-commerce has been steadily growing for years. The study projects that by 2022, global online sales will have amounted to $6.54 trillion. That's nearly twice what was recorded in 2019. While many luxury brands are hesitant to join the online market, Styleout Watches established its online store and registered growth during 2020 by receiving orders from across the globe. The data clearly shows that that's where the industry is headed. By contrast, fighting the change could eliminate a brand for good.
Millennials are adults now
Luxury brands must accelerate their digital transition. This is because the millennial generation is now of the age when they are making a stable income. Millennials born between the years 1981 and 1996 are the first generation to grow up with the Internet. According to Styleout Watches, the majority of their millennial consumers place online orders. This generation was the first to become comfortable with online shopping. The youngest millennials are now twenty-four-year olds, which means most of them have entered or are entering their prime earning years. Experts at Styleout Watches opine that this generation is now looking to buy luxury brands and do so online.
You can now build an online brand experience
Customer experience is one of the biggest reasons luxury brands are hesitant to offer online shopping options. They have always aimed to create an evolved experience for customers who shop for their products. This experience has included scheduling viewings and fitting at boutiques, complimentary champagne, and more. However, we are now at the point where you can create a boutique experience online for the first time. Styleout's digital brand building has made it possible for them to build a unique digital customer experience. Through social media, attentive virtual communication, and a well-designed website, Styeout Watches offers its customers a one-of-a-kind experience. There is no reason for luxury retailers not to dip their toes into the online pool.
While many brands have embraced digital technology to increase their reach and sales, luxury brands have been among the last to adopt. But retailers like Styleout Watches in the luxury market are doing well by accelerating their digital sales transition. As the world changes, e-commerce will only continue to grow.
