Digital is becoming key to driving luxury sales, with consultancy McKinsey finding that about 15% of luxury sales are directly driven by digital (€25bn). In addition, 20% of in store sales directly influenced by digital (€34bn). Mark Haviland, MD of Rakuten LinkShare UK, explains why online shopping is no longer just a realm for bargain hunters…
The findings of the Altagamma/McKinsey study, as reported by the FT have confirmed what we suspected; that digital will play a massive part in the growth of the luxury sector.
This supports evidence that we are seeing from our own network – that luxury is booming online and our publishers are driving large volumes for brands.
As the report reveals, luxury consumers visit more than four sites to help them make the right choice, so ensuring your brand appears on a number of sites is crucial. The consumer buying cycle is complex, and brands must be in the right place at the right time to prompt a consumer to make a purchase and tablets of course play a massive role here too!
Revealed also is evidence that well placed offers and loyalty deals are in demand. Combine this approach with good relationships with trusted publishers, and brands can reach the volumes they desire, without infringing on brand equity.
The idea that online shopping is for bargain-hunters has been blown out of the water now. Luxury should no longer fear digital, and many have clearly already embraced this
By Mark Haviland
MD
Rakuten LinkShare UK
http://www.linkshare.com/
