Online consumer engagement in the worldwide luxury market remains priceless
E-commerce — both at home and abroad — is shaping up to be a winning strategy for fashion retailers in Italy, says Lodovico Marenco, founder of web marketing and e-commerce consultancy, LML Company. In fact, the fashion, accessories and clothing industry is leading sales growth in Italy’s blossoming online retail sector, he says.
“Online retail is a huge opportunity for ‘Made in Italy’ brands to broaden their market,” Marenco says. A major reason for the global success of Italian fashion brands, he adds, is the country’s reputation for manufacturing quality goods, which are exported under the ‘Made in Italy’ trademark. “The quality that distinguishes the production of Made in Italy brands, particularly clothing and footwear, thanks to the web, can find new opportunities of expanding internationally,” he says.
Many Italian companies are studying or have implemented a strategy to sell abroad, partly to face increasing competition from international businesses operating in Italy.
The revenues for fashion and design goods purchased online in Italy in the first two months of the year came in at EUR 73 million, a 79 percent rise compared to the same period of 2013, according to a study conducted by the Italian Consortium of Electronic Commerce (Netcomm) and Human Highway.
The total number of online shoppers in the fashion sector between April 2013 and April 2014 grew by 42 percent, equivalent to 3.3 million new shoppers. In total, over 11 million Italian consumers have purchased a fashion product online at least once in their lives. The survey also revealed that 40-43 percent of those who acquired fashion goods online over the past year did so for the price-quality ratio, while 32-33 percent replied that the credibility of the website was the main reason. Around 21 percent of those who purchased designer goods online said that they did so due the difficulty in finding the product via a different channel.
While the economy has struggled in recent years, North America is still home to the largest amount of high net worth individuals in the world. There has been a renewed optimism in the U.S. for the luxury market – and Italian brands seeking growth, as well as survival – are embracing the United States in their expansion plans.
Most of all, online luxury sales are growing twice as fast as the overall market, according to a new report from McKinsey. The internet has changed how people make purchase decisions, even in the most exclusive circles.
Time limited consumers are using social media much more frequently these days to get info on their favorite brands — even more commonly used than magazines. More Italian brands today are increasing their online presence, realizing that the internet is the only medium that can reach almost all luxury buyers in all markets.
When it comes to current growth, the global hot spot for luxury sales is the U.S., and online consumer engagement in the worldwide luxury market remains priceless.
