Survey: Growing Digital Presence in Luxury Market

A recent survey conducted by the Royal Bank of Canada revealed that digital sales accounted for 5.5 percent of luxury sales last year, which totals to roughly $15.95 billion at average exchange rates, according to Women’s Wear Daily.

The study surveyed 500 luxury consumers in China and 250 in France. Fifty-nine percent of Chinese consumers surveyed said they search for product information online more than once a week, while 92 percent reported they were interested in buying luxury goods online.

Comparatively, 28 percent of French luxury shoppers said they search for goods weekly online, and only 53 percent were interested in purchasing apparel online. The RBC report also stated that 42 percent of French consumers see a strong digital presence as a “positive for luxury brands,” in comparison to the 10 percent that saw it negatively, reports WWD.

French consumers also ranked Chanel and Dior as their favorite luxury brands, while Chinese consumers named Chanel, Hermès and Louis Vuitton.

The RBC concluded that if digital sustains “20 percent compound annual growth in the next three years, it may represent nearly 8 percent of the total luxury market in 2017,” reports WWD.

“U.S. digital penetration is more than double the global average, hence a strong digital platform is even more important for luxury brands to gain market share in the U.S.,” the report said, according to WWD.