International online sales of high-end items increased by 170% year-on-year in August and September, according to sales data from cross-border eCommerce platform eShopWorld.
Brands utilizing the worldwide tech platform have switched much of their focus online in the after-effects of the coronavirus pandemic, which triggered numerous physical shops to close earlier in the year.
The increased sales in the late summer season follow peak activity in July when cross-border sales of luxury items were 40% greater than in the lead-up to Christmas 2019 –– typically the greatest trading duration in the calendar together with the January sales.
Covid-19 and other altering consumer demographics have prompted the high-end market to reprioritize digital in order to increase sales across the world, according to eShopWorld, which anticipates combined gross merchandise value negotiated through its platform to double in 2020 to nearly £& pound; 1 billion.
Undoubtedly, a research study from Boston Consulting Group released in June recommended before the health crisis eCommerce represented 10% to 12% of luxury sales worldwide, however, the shift to online this year – — and the tendency of younger buyers to look for both transactions and experiences digitally – — suggests this figure is forecasted to be bigger in the years ahead.
Tommy Kelly, CEO of eShopWorld, commented: “High-end companies are having to accelerate their digital existence to make up for the decline in in-store shopping.
“To do so they need to develop brand-owned online stores if they want higher control and wish to position their items according to their sales techniques, striking a balance between brand experience and the ease of finding products flawlessly.”
He included: “This enables for the combining of the physical and digital worlds to develop ingenious retail experiences provided with the seamless service customers get out of high-end sellers.”
UK-based luxury player Mulberry announced its preliminary outcomes for the year to 30 March, today (5 October), and group profits were down by 10% year on year to £& pound; 149.3 million, mostly showing a challenging UK market and the effect of Covid-19 at the end of the period. Group profits were down by 6% prior to the start of the infection.
Digital sales increased to 24% of total income, compared to 22% one year before, and Mulberry stated sales produced from international markets continued to grow as a proportion of general group sales. It expects this trend to continue and has increased its concentrate on the fast-growing Asia-Pacific market.
Mulberry likewise reported as “effective”, the digital off-price website is introduced to help drive sales when its outlet stores temporarily closed because of the virus.