Why Are Luxury Brands Fighting Online?

According to the latest report jointly issued by Contactlab and Exane BNP Paribas (Paris bank), online commodity supply and pricing adjustment Online Offer Dive & Pricing Landscape shows that luxury brands now pay more attention to online and full channel pricing strategies than ever before.

Past year

Significant changes have awakened their attention to online business.

The report investigated 32 families.

The company showed that although almost everyone said that they should strengthen digital business, overall, the supply of products sold through online channels in the autumn and winter series in 2016 declined by 3% compared to the same period last year, while the figure increased by 20% during the same period last year.

Consumers who buy luxury goods online and consumers in physical stores spend 50% more than consumers who buy luxury goods only in stores each year.

The brand is trying to find ways to increase the number of consumers in digital participation, while maintaining individuality and unique style to bring more advanced shopping experience to customers.

The report shows that some luxury brands have increased the supply of online products and have quietly adjusted prices substantially, while some of the leading businesses on the online business have fundamentally reshaped the supply of online products.

Research shows that the supply of luxury goods has declined slightly, partly because some companies have restructured the brand line of business and incorporated the regional brand into the main line. Meanwhile, some "aware" brands have finally realized the importance of online business.

A group of luxury brands that first developed online channels, such as Burberry, Gucci, Tiffany and Armani, reduced the online product supply by about a high digit to a low double digit.

On the contrary, another group of luxury brands significantly increased the online supply of products in autumn and winter in 2016, exceeding 20%, including: Fendi (+306%), Chanel (+50%), Bulgari (+30%), Saint Laurent (+24%), Moncler (+23%), +24% and Bulgari.

The addition of some top luxury brands in this list led to a 1.8% rise in the price of online luxury goods.

The average price of online luxury goods fell by 1.5% (some brands expanded their light luxury businesses), and the overall online selling price of the industry increased.

Many high-end brands such as Herm s and Cartier have actively promoted online businesses and launched more advanced luxury goods that they could only buy in physical stores.

But there are concerns that too fast expansion will impede consumers' access to brands, elaborate design and maintenance of expensive entity stores, and may also affect luxury profits.

In order to solve such problems, some luxury brands increase the quantity of goods that can be searched on the website, but not all products can be purchased online.

The report says that increasing this search can stimulate consumers' interest and desire to buy.

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Major changes

The key trend last year is how brands change their online business strategy.

Traditionally, accessories are the key to many luxury online businesses.

The survey shows that the online business of garments has increased significantly.

For example, the Italy luxury brand Kering Gucci has reduced two core categories: the number of handbags and soft luxury online products; on the other hand, it has significantly increased the volume of garments (+60%) and non core categories (jewellery and watches).

Others such as Bulgari, Zegna and Herm s have greatly increased the pricing of intermediate and entry-level goods, but Dolce & Gabbana, Tiffany and Burberry have reduced the pricing of intermediate and entry-level goods, making their products more affordable.

Dolce & Gabbana and Burberry have cancelled their D&G and Brit brands in recent years, but have also promised to provide consumers with lower budget goods that are suitable for their budget.

Marco Pozzi, a senior consultant at Contactlab, said that the price of the most expensive luxury goods that can be purchased online rose from a Tiffany Necklace ($150 thousand) in the autumn and winter of 2015 to the Cartier watch in autumn and winter of 2016 ($181 thousand).

However, the online products offered by 11 brands in the 32 brands start below $20.

He added that the Ralph Lauren, Tiffany and Herm s s's overall entry-level goods are priced at less than US $150 and are the best players in price categories.

The price of Chanel and Dior is $38 and $28, respectively. Swiss fashion.

Swatch's entry-level goods cost $38.

For more information, please pay attention to the world clothing shoe and hat net information report.