Consumers have increased their online spend on luxury goods across the globe during the COVID-19 pandemic, according to new data from customer engagement platform provider, Emarsys and data analytics provider, GoodData, with leather goods such as handbags, and high-end sneakers, the most in demand categories.
The ‘Covid-19 Commerce Insight’ project showed that consumers spent 57% more on luxury goods in the week commencing 30 March compared to the previous corresponding period.
While you might expect sales of luxury goods online to go down as people tighten their belts, the data shows that it’s going up, Alex Timlin, senior vice president of verticals at Emarsys, who has been analysing the data said.
“The vast majority of consumers are going through a tough time. I appreciate that ecommerce isn’t going to help every brand in the world right now, but it can be a serious help in offsetting the damage caused by lost sales in physical stores while we navigate this global crisis. Many luxury brands believe that a luxury sell can’t be done effectively online—but during this time, those brands may have no choice but to reconsider the channels through which they sell.”
Consultancy firm Bain & Company is predicting the global luxury goods market to suffer a 35% year-on-year decline in 2020, particularly with many brands including Chanel and Gucci not selling their full range online.