With more than 330 million luxury buyers worldwide, the overall luxury industry upholds to show healthy growth, inspite of moderate global growth. Demand for luxury goods, which is at the “heart & soul” of e-commerce – continues to drive the market. The overall market for luxury goods has increased threefold in size over the past 2 decades to 223 billion Euros in 2014. With a fundamental growth rate of 7% reported during the third quarter of 2015, the growth remains hefty within the context of the extensive economy. The luxury-shopping sector does, however, develop as wealthy consumers think, research and spend differently.
Few trends to rule in 2016:
Luxury shoppers use social networks sites such as Facebook, Twitter,Pinterest & Instagram mainly to carry out research about products or to re-tweet people’s posts.
Sites and apps such as Google+, Pinterest & Instagram fascinate the customers visually. Luxury shoppers tend to use these various channels depending on the situation. Twitter is largely used to follow events live; Facebook is used more socially wherein brand can communicate with their followers.
Travel & Tourism
International travel and tourism acts as a catalyst for global luxury goods market. Chinese travellers continue to represent the fastest growing nationality for luxury and dominate the predictions. Tourists actually spend much more on luxury products worldwide than what they spend locally.
Luxury brands are over-allocating ads spend to print media. The seven largest luxury brands collectively spent $133 million last year on holiday ad allocating, 57% of which was employed in magazine ads. But among luxury shoppers, recall rates are higher for digital ads.
Online sales are projected to account for a larger sum of entire sales in 2016 and the increase in total spend per person is expected to jump too from 2015 to 2016. With this perceived growth in e-commerce sector, it’s likely that offline stores will have to put in much more efforts into pushing sales, which shall be challenging.
With WhatsApp and Facebook Messenger growing closer to 1 billion monthly active customers worldwide, it’s easy to see how the trend will be considerably important in 2016. In 2016, messaging will not just be a way of communicating with friends, but also a way to talk to a computer system that can assist with virtually any task one could want. As the average smartphone user spends about 84% of their time in five apps or less, portals would want to engage potential customers within apps like Facebook because that’s generally where more time is exhausted. Also offline players shall be forced to look at digitally enhancing their brand to grow further.
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