The worldwide luxury retail industry will generate a 41.67 billion dollar turnover in 2019 according to market research firm Technavio. Remarkable fact is that multi-brand sites will lead the charge.
4 online department stores in top 5
Technavio estimates the worldwide luxury retail industry to have garnered a 21.43 billion dollar online turnover in 2014, some 19.7 billion euro. However, luxury items’ eCommerce activities grow 14 % per year, which should lead to a 38.5 billion euro turnover in 2019 according to the market research firm.
Online department stores, namely web shops that sell more than one brand, will lead the charge. Opvallend: de online department stores ‑ webshops die meerdere merken verkopen ‑ leiden de dans. Online department stores were quicker off the mark than single-brand companies to offer new services like free shipping and return policies. Those have simplified the online experience and increased the customer experience”, Technavio’s Vijay Sirathi said in his “Global Luxury Etailing Market 2015-2019” report. The consumer obviously appreciates these trends.
The company believes there are 5 companies that are way ahead of everyone else, based on their turnover contribution compared to the entire online luxury retail industry’s online turnover. Nordstrom (with its Nordstrom web shop, its Nordstrom Rack outlet, HauteLook flash sale website and its men’s fashion service Trunk Club) has the largest market share at this point, with 11.67 %.
Neiman Marcus Group (Neiman Marcus, Bergdorf Goodman and Horchow) is second with 5.36% and Saks Fifth Avenue, owned by Canadian Hudson’s Bay, is third with 4.2 %. Ralph Lauren is the only single-brand company, ranked 4th, while Net-A-Porter is the fifth in the list.
