How E-Commerce Is Penetrating the Luxury Market

 The luxury goods market has been the longest holdout when it involves adapting to online shopping. Despite e-commerce witnessing an increase for years, many luxury brands fear that they're going to lose their elite status by moving to the web. 

But e-commerce expert Raymond Scott Jr. and Gemma Fine Jewelry, CEO Ori Vechler, share how e-commerce is beginning to penetrate the posh market, and why this is often only the start .

According to Vechler, there are two main reasons why luxury brands don’t wish to sell their goods online. “First and foremost, luxury brands worry that by selling on a standard platform, they become more pedestrian. 

They don’t want to risk losing their status as an elite market,” said Vechler. Secondly, he says, luxury brands have always focused on the in-person customer experience. Their brand strategy is about the experience of shopping for the merchandise, not just the merchandise itself.

According to Vechler, these two tenets are pillars of the posh goods marketplace for an extended time. But things are beginning to change and for an honest reason.

As an expert in e-commerce, Scott believes it's only a matter of your time before e-commerce takes over the trade completely. And here is why; “Online shopping is now a highly customizable process, which suggests that if luxury brands want to make an elaborate retail experience, they will do so,” said Scott. 

“It won’t be glasses of champagne or private fittings, but it are often unique nevertheless.” As a luxury-goods professional, Vechler says that if luxury brands plan to adapting their shopping experience, they will still find ways to form it special for patrons. 

“Special delivery for fittings or one-on-one virtual consultations can still bring a lavish and elite experience,” said Vechler.

According to Scott, luxury brands will need to adapt to e-commerce standards, albeit they're worried about losing their elite status. “In 2017, Nasdaq forecasted that 95 per cent of business would be conducted via e-commerce by the year 2040,” said Scott. 

“Luxury brands are beginning to realize that if they are doing not adapt, they're going to lose revenue,” Scott says that this monumental change has been years within the making and is usually thanks to the very fact that millennials are entering their prime earning years. 

Millennials have grown up buying things on the web and typically get all of their information from the web . This makes them more hooked in to the online when it involves shopping, luxury, or otherwise. and each generation after them will follow their lead. “E-commerce is quite just a trend,” said Scott. “It may be a generational revolution.”

Industries across the world have latched onto e-commerce for its reach and convenience. the posh goods market has consistently resisted this alteration . 

But consistent with Scott and Vechler, e-commerce is beginning to penetrate the posh goods market nevertheless. And it won’t be long before this tentative adaptation becomes more widespread.