Consumers all across the world are comfort buying more luxury goods online to help them get them through the Covid-19 crisis, tech firm Emarsys can confirm.
Consumers worldwide spent 57% more on luxury goods online last week year on year — with leather goods (for example handbags) and high-end trainers seeing the highest consistent growth in luxury demand in the UK.
The online sales of luxury goods are helping to offset the closure of physical stores across the world, which consultancy firm Bain & Company is predicting will result in a year-on-year decline of up to 35% in the global luxury goods market in 2020. However, many brands like Chanel, Gucci, Prada and Louis Vuitton don’t sell their full range online, instead preferring to prioritise the in-store luxury experience, which could prove damaging during this crisis.
These online trends were identified by Covid-19 Commerce Insight, a joint project between leading customer engagement platform provider Emarsys and data analytics provider GoodData showing the impact the impact of Covid-19 on consumer confidence.
Alex Timlin, senior vice president of verticals at Emarsys, who has been analysing the data said: “The vast majority of consumers are going through a tough time at the moment, and while you might expect sales of luxury goods online to go down as people tighten their belts, our data shows that it’s going up.
“I appreciate that ecommerce isn’t going to help every brand in the world right now, but it can be a serious help in offsetting the damage caused by lost sales in physical stores while we navigate this global crisis. Many luxury brands believe that a luxury sell can’t be done effectively online — but during this time, those brands may have no choice but to reconsider the channels through which they sell.”
The tool used by Emarsys to identify these trends draws on more than a billion engagements and 400 million transactions in 120 countries, providing a global and regional picture of ecommerce activity and trends — a key indicator of overall economic conditions in these unprecedented times.
Key insights from Covid-19 Commerce Insight include how the pandemic is affecting the number of online consumer transactions, order numbers, the average order value, types of items purchased and more — in any industry and region in the world — in context of the extraordinary measures taken by governments globally.