2017 is the Year of the Luxury E-Tailer
As the "death of retail" is heralded as the biggest trend of 2017, boutiques shutter and rumors fly of possible department store bankruptcies driven by changing consumer habits, price wars and the threat of Amazon. High-end e-commerce remains a bright spot in the shopping landscape: flooded with more cash than ever before and with bubble like sky-high valuations to boot.
It’s a world dominated by two behemoth competitors who have spent the last year aggressively expanding their territories and strategically carving up the landscape between them.
The stakes are high. Online luxury sales jumped by 24 percent in 2017, according to a recent study by the consulting firm Bain & Co., with the authors estimating that online sales of personal luxury goods will make up 25 percent of the market by 2025.
With a heightened sense of rivalry across a narrow band of luxury e-commerce players, there is no question that everyone is sizing up where to go next.
At Buying Intelligence, we are seeing the competition heating up with a push into Asia and the Middle East, introduction of brand collaborations and premium delivery services.