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The luxury e-tailing market is poised to grow by USD 27,533.22 million accelerating at a CAGR of 8.44% between 2023 and 2027. Additionally, the market is fragmented in nature and shows a YOY growth of 7.76%. The report covers diverse dimensions such as the market size of forecast and historic data, influential drivers, analysis of prominent vendors, and evolving trends, presenting a comprehensive outlook on the global market scenario.
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. The comprehensive report of luxury e-tailing market offers crucial insights of the industry's changing dynamics, helping businesses to identify growth opportunities in the constantly evolving digital retail landscape.
The market is Segmented as
1. Product- The product segment is classified into personal luxury, food and wine, and home accessories segments.
2. Channel- The channel segment is classified into multibrand and monobrand segments.
Luxury E-tailing Market Size, Request for Free Report Sample
The surge in online spending and smartphone usage significantly propels the growth of the luxury e-tailing market. The increased popularity of mobile-based online shopping, driven by widespread Internet access, economic growth, and user-friendly mobile applications, has heightened demand for e-retailing. Shopping websites offer detailed product information, enhancing consumer interest. The market benefits from secure online payments, free delivery, improved services, and user-friendly website designs. The emphasis on m-commerce grows with smartphone penetration, generating more buyer opportunities. Key players like eBay and Amazon contribute to market growth through versatile mobile applications. These factors are poised to drive sustained market expansion throughout the forecast period.
The adoption of multichannel marketing stands out as a crucial trend in the luxury e-tailing market, with social media playing a pivotal role in product awareness. Consumers actively utilize platforms like Facebook, Twitter, Instagram, and YouTube to gain insights into premium cosmetics products. Vendors leverage these social media channels to enhance awareness and product promotion. Notably, brands collaborate with social media influencers to boost their popularity, as seen in Huda Beauty's significant Share of Voice (SOV) attributed to influencers. The market's growth is further driven by the increasing Internet and smartphone penetration, along with vendors' engagement practices, contributing to elevated sales volume and revenue in recent years.
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.
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.APAC's luxury E-tailing market is set for robust year-over-year growth, led by China in 2021, followed by Japan and South Korea. The thriving real estate sector, especially in residential and commercial properties, drives the market, with China, Japan, and South Korea contributing significantly. Urbanization and a growing taste for luxury fuel China's demand, sustaining strong construction and sales of upscale properties. The market benefits from a rising high-net-worth individual (HNWI) population, expanding middle class, and growing consumer preference for luxury items.
Key growth areas include luxury watches and skincare products, driven by social media campaigns, celebrity endorsements, and the flourishing e-commerce industry. Notable players include eBay Inc., Amazon.com Inc., and Flipkart Pvt Ltd. However, challenges like counterfeit products and high import duties may pose obstacles to growth despite a steady expansion.
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:
Fierce competition from offline channels may hinder the luxury e-tailing market's growth. Consumers lean towards purchasing premium items, like personal care products, wine, spirits, home decor, furnishings, and furniture, in physical stores for a hands-on experience. Additionally, concerns about cybersecurity often discourage high-value online transactions. The offline segment of the global home decor market benefits from a growing number of product-specialty and brand-specific stores, which offer credibility and personalized assistance to consumers. Consequently, offline stores pose a significant challenge to the expansion of the global luxury e-tailing market.
The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth. For details analysis BUY FULL REPORT.
Luxury E-tailing Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.44% |
Market growth 2023-2027 |
USD 27533.22 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.76 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, Italy, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
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, Market condition analysis for forecast period |
Customization purview |
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