Luxury brands need to shift in digital direction

A new research report from BCG indicates almost six out of ten luxury goods sales are digitally influenced, despite digital remaining a hard, new reality and an inevitable, inescapable business shift for many luxury brands. The report suggests that brands should value digital technologies as a way to extend their services beyond the store.

The research, a survey of approximately 10,000 consumers in ten countries, also found that luxury ecommerce sales which now account for 7 per cent of the overall luxury market, will grow further to 12 per cent by 2020.

According to the report, brands cannot delay the move towards more virtualised interactions with consumers.

“Although many consumers will still want to interact physically with luxury products, they see virtual experiences as a path to more immediate gratification,” the report observed. “So brands should likewise value digital technologies as a way to extend and individualise their services far beyond the store.”