Forrester’s global forecast of the luxury retail market reveals sales are booming: eCommerce drove 39% of luxury sales growth in 2017 – a number that is expected to rise to 59% by 2023. According to the forecast, the four main growth factors are:
- Income growth, especially amongst millennials in China. In the last two years, income grew by 15% in China and almost half of China’s luxury shoppers in 2017 were under 30.
- Online growth from luxury retailers like Moda Operandi, Farfetch, MATCHESFASHION.COM and Secoo, which grew sales by more than 40% in 2017. In the US, the share of luxury shoppers purchasing online began catching up with those purchasing offline, reaching 50% and 64% respectively.
- Offline growth, which will continue to drive luxury goods sales. Michael Kors, for example, experienced 61% of its sales in-stores.
- High-spending individuals. More than 90% of the world’s affluent consumers buy luxury products and services.
The forecast also includes data about how both convenience and strong online and in-store is driving online luxury shopper spend. Click here for more information.