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The luxury e-tailing market is estimated to grow at a CAGR of 8.44% between 2022 and 2027. The size of the market is forecasted to increase by USD 27,533.22 million. The growth of the market depends on several factors, including the rise in online spending and smartphone penetration, social media and celebrity endorsement, and premiumization through product design and innovation.
This report extensively covers market segmentation by product (personal luxury, food and wine, and home accessories), channel (multibrand and monobrand), and, geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise in online spending and smartphone penetration is notably driving the market growth, although factors strict competition from offline channels may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Luxury E-tailing Market Driver
The rise in online spending and smartphone penetration is notably driving the luxury e-tailing market growth. The popularity of online shopping through smart devices increased over the years due to the high penetration of Internet services, improved economic growth, and the fluid interfaces of mobile applications. Shopping websites provide detailed information about products, including quality, safety measures, and user guidance, which has increased the demand for e-retailing.
Security features of online payments, free delivery, improved online services, and the customer-friendly designs of shopping websites are also contributing to the growth of the market. Moreover, the focus on m-commerce has increased, with the penetration of smartphones and the generation of more opportunities for buyers. eBay and Amazon are the two major vendors in the online space. They have mobile applications that are compatible with Windows, Blackberry, iOS, Android, and other operating systems. These factors will fuel the growth of the market during the forecast period.
Significant Luxury E-tailing Market Trend
Multichannel marketing is a key trend in the luxury e-tailing market. Social media plays a major role in increasing awareness about a product. Consumers use social networking and blogs to learn about premium cosmetics products. Hence, vendors are using platforms such as Facebook, Twitter, Instagram, and YouTube to increase awareness and promote their products.
Many brands partner with social media influencers to increase the popularity of their brands. For example, according to an analysis by Launch Metrics, influencers represent the major Share of Voice (SOV) for Huda Beauty. Thus, factors such as the increasing penetration of the Internet and smartphones and the growing number of customer-engagement practices by vendors of premium cosmetics have contributed to the overall sales volume and revenue of market vendors over the past few years.
Major Luxury E-tailing Market Challenge
Strict competition from offline channels may impede the luxury e-tailing market growth. Consumers prefer to buy premium products such as personal care products, wine, spirits, home decor, home furnishings, and furniture from offline stores, as they can examine the products physically before purchasing. Moreover, many consumers are hesitant to perform high-value transactions online due to cybersecurity concerns.
The offline segment of the global home decor market is influenced by the increasing number of product-specialty stores and brand-specific stores. Consumers prefer these stores owing to their high credibility. Moreover, employees of these stores can understand the needs of consumers and suggest products that suit their needs and budgets. Thus, offline stores pose a major threat to the global luxury e-tailing market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Luxury E-tailing Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ASOS Plc - The company offers luxury E-tailing of men's and women's clothing.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the personal luxury segment will be significant during the forecast period. This segment includes watches, jewelry, accessories, shoes, bags, fragrances, cosmetics, glasses, and headphones, among others. The preference for online shopping is increasing, with the growing Internet penetration rate and the increasing number of smartphone users worldwide. A wide range of premium personal goods are available online in various categories, price ranges, and brands.
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The personal luxury segment showed a gradual increase in the market share of USD 28,962.48 million in 2017 and continued to grow by 2021. Major manufacturers of personal goods such as cosmetics are expanding their professional skincare e-retail businesses to gain a competitive advantage over Internet-only retailers. They are building their own web portals and creating partnerships with other distributors to sell professional skincare products online. For instance, Beiersdorf AG has its online presence in China in partnership with NetEase Kaola. Such partnerships can help increase the online sales of luxury personal goods during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in APAC is driven by factors such as the growth of the real estate sector for residential and commercial properties. Japan, China, and South Korea are the key revenue contributors. In addition, wide product portfolios and the launch of new and innovative products will also fuel the market growth during the forecast period. The growing Internet penetration is also expected to drive the online sales of luxury products in APAC.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. In March 2021, the second wave of the pandemic in countries such as India led to stringent travel restrictions, which led to a decline in spending on luxury goods. However, the initiation of vaccination drives resulted in the lifting of lockdown restrictions in the region in the second half of 2021. As a result, several commercial and recreational activities resumed, which led to a recovery in the demand for luxury e-tailing. Countries of the region are witnessing a K-shaped recovery, which is expected to result in an increase in demand for luxury products via e-tailing.
The reports categorize the global luxury e-tailing market as a part of the internet and direct marketing retail market, which covers the revenue generated by companies providing retail services primarily on the Internet through mail orders, door-to-door retailers, and TV home shopping retailers. It also includes companies providing online marketplaces for consumer products and services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (Personal luxury, Food and wine, and Home accessories), Channel (Multibrand and Monobrand), and Geography (APAC, North America, Europe, Middle East and Africa, and South America).
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Luxury E-tailing Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.44% |
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Market growth 2023-2027 |
USD 27,533.22 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.76 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 49% |
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Key countries |
US, China, Japan, Italy, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ASOS Plc, Authentic Brands Group LLC, Bed Bath and Beyond Inc., Burberry Group Plc, Charms and Chains, Compagnie Financiere Richemont SA, Crate and Barrel, Harrods Ltd., Hennes and Mauritz AB, Hermes International SA, Hudsons Bay Co., Inter IKEA Systems B.V., Kering SA, Luxuryperfume.com Inc, Moda Operandi Inc., Nordstrom Inc., Ralph Lauren Corp., SDI (Brands 2) Ltd., CHANEL Ltd., and LVMH Moet Hennessy Louis Vuitton SE |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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