2017 is still a tough year for luxury brands, and the digitisation of luxury brands is still lagging behind in other areas. New protagonists such as Amazon’s e-commerce platforms, discount websites, second-hand resale platforms and the cold winter in the department store have also become resistance to luxury brands’digital influence. L2 deputy director Brian Lee also said the luxury brands had been threatened by emerging e-commerce brands such as Everlane and Reformation.
The report also found that 38% of fashion brands had a low search conversion rate. For example, 40% of consumers in the January search guide for luxury brands were directed to third-party e-commerce websites, while only 18% were directed to brand websites. But the widespread rise in the digital competitiveness of luxury brands has also helped boost brands after the downturn in 2016. In the process of improving the digitalization level, it is an important part to seize the millennial generation.
Millennials are becoming a steady growth target for the luxury industry, which is expected to grow from a quarter of the size of consumers to nearly half by 2025. As digital aborigines, millennials mainly rely on online channels to discover products and interact with brands, which will be an important opportunity for brands to strengthen digital investment.