As the online retail industry matures, consumers are purchasing more luxury products and premium goods through eCommerce channels. In a recent member brief, we discussed direct to consumer luxe:
Target one: These are the upper middle-class to wealthy Americans. This group is more likely to make frequent, impulsive purchases. They need fewer consumer cycles to research their potential purchases. They are liquid and they are busy.
Target two: These are the bargain shoppers, discount searchers, and methodical buyers. Their income is fixed and their free cash flow is often hindered by healthcare costs, residential leases, and logistical commitments that are necessary to function in this evolving economy.
Thanks to “target one” consumers, online sales of luxury personal goods grew 23.3% from $22.6 billion to $27.9 billion (according to Internet Retailer). 2018’s number is estimated to reach $35 billion in worldwide luxury sales. These are the biggest contributors to the growth.
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