Do you need a new leash for your dog, a last-minute costume for your fourth grade class performance, or a smoke alarm battery? The world’s largest online market seems to have endless options, and it is easy to order your jam. Amazon’s dominance in the online market is no secret, but it has become more profound during the pandemic. Moreover, the company’s record growth in 2020 has now been overshadowed by its 2021 performance; Amazon’s revenue is expected to reach 37.6% in 2020 (26.3% from 2010 to 2019), a growth in the first six months of this year Which is 34.8%, reaching 221.6 billion U.S. dollars, compared with 164.36 billion U.S. dollars in the same period in 2020.
Not surprisingly, in 2020, as shoppers seek a new way to quench their thirst without having to enter a physical store, online sales will explode in many industries.According to a Digital Commerce 360 The report shows that last year consumers spent $861 billion online at US retailers; this is an increase of 44% over 2019.
As expected, with the increase in vaccination rates and the reopening of borders and physical stores in 2021, the trajectory of online growth has eased. But e-commerce numbers continue to rise. According to recent data from the US Department of Commerce, online sales in the second quarter of this year increased by nearly 10% compared to the second quarter of 2020.
The luxury goods industry has also seen a boost, according to Bain & Company Luxury Research Spring 2021 Update“As new customers buy luxury goods online for the first time, the growth of online channels is still strong, the price range is also expanding, and there are more and more entry-level products and high-end products,” it said.
Today, with just a few clicks, you can buy a $12 million Colorado ranch, rare supercars or artwork, or luxury watches online. Many people are.
“The two factors driving the creation of these online luxury goods markets are the impact of the pandemic on on-site shopping, and the assumption that because wealthy consumers are already online, they will buy highly valued, high-value, high-risk, high-emotional products and online services. ,” said Milton Pedraza, CEO of Luxury Institute, LLC. “In the past, these multi-luxury asset markets had limited success, essentially advertising and brochures.”
Luxury online market, such as 1stDibs It has flourished before the pandemic and has seen significant growth since then. Chief Marketing Officer Nancy Hood said: “The pandemic has accelerated the speed of online luxury purchases, which are usually invisible.” The company’s two main buyer groups-global consumers and indoors Designers-interest and sales have increased.
This is a familiar trajectory James Edition, A luxury online platform featuring high-end real estate, rare cars, jets, yachts and watches.
“We are fortunate to see significant growth in James Edition, especially in the global luxury real estate sector,” said CEO Eric Finnås Dahlström. “We have seen that from the beginning of 2020, usage indicators and traffic have increased by an average of 5 times, and in some areas by more than 10 times. We have been able to help customers successfully close their properties within an average of one to two months. In the high-end market, these properties can be sold on the market for six months or more.”
2015 McLaren P1 GTR Rear Drive | JamesEdition.com | $3,040,000
An important side benefit of the increased attention, traffic, and revenue from the pandemic: These high-end online markets can be reinvested and made welcome improvements.
“In the past 12 to 18 months, we have also made large-scale product changes to our real estate segment, including a comprehensive redesign, updating our technical infrastructure, implementing machine learning models, and increasing marketing investments,” Dahlström said .
Chrono24 and Vestiaire Collective are online markets for luxury watches and resale fashion respectively, and they are also using their success to position themselves for the future. Women’s clothing collective Recently raised US$216 million, funds dedicated to new brand partnerships, increased staffing, and future goals of achieving carbon neutrality and obtaining B Corp certification by 2026.
After CEO Tim Stark called it the most successful year in the company’s history, Time and Space 24 Recently received more than 118 million U.S. dollars in Series C investments, which are marked as global expansion, recruitment of top talent, and promotion of logistics to simplify processes and strengthen global service work.
Since the beginning of the pandemic, both market segments have seen significant growth. According to the Swiss Watch Industry Federation FH, the sales of the Swiss watch industry are higher than the pre-pandemic figures. Asia will continue to develop in 2020, and sales in the United States have increased last summer; compared with July 2019, US sales in July increased by nearly 50%, becoming the world’s leading market that month.
Time and Space 24
Not surprisingly, sports and leisure flourished during the pandemic. Market leader Lululemon, with its online sales and revenue in the first quarter of fiscal 2021, increased by 88%, ending in fiscal 2020.
However, although the COVID has prompted many people to turn to comfort, the desire for luxury fashion still exists. Vestiaire Collective announced that its overall transaction volume has doubled in 2020, having a significant impact in the United States and Asia. “As of January 2021, the sales of local sellers in these regions have increased by more than 250% year-on-year,” Tiger Global partner Griffin Schroeder said in a press release. Tiger Global, an American investment company, together with the French luxury goods group Kering, was behind the large-scale C series financing injection earlier this year.
Bain & Company predicts that the luxury second-hand market will become one of the industries with the largest growth, from 30 billion U.S. dollars in 2019 to 33 billion U.S. dollars in 2020. Part of the reason is: “The second-hand luxury goods market includes not only entry-level young consumers mainly buying aspiring categories and products, but also top consumers and collectors looking for high-end or collectible products,” they said in their 2021 Luxury Research said in the spring update.
These demographic data play a role in all types of online behavior. Milton said that young people who grew up in the digital world may be more likely to make high-priced purchases online. “There is no doubt that if they can buy directly from trusted brands or suppliers, wealthy young consumers may buy expensive items such as jewelry and watches online,” he said. “Others will never buy invisible things, while others insist on testing luxury assets because they also like the shopping experience of high-value luxury goods.”
Pablo Picasso | “Big Head” | 1stDibs | USD 265,000
However, Hood said the pandemic also helps alleviate consumers’ concerns about large amounts of online shopping. “The pandemic has allowed our industry to move forward for several years. Consumers are now comfortable buying luxury goods online, and in many cases there is no refund. We do hope that as the world continues to open up, we will continue to see this One point, because consumers have become accustomed to and experienced the benefits of buying luxury goods online.”
Although it seems unthinkable to buy one Victorian crystal chandelier worth 700,000 US dollars, A second-hand, Rare Crocodile Hermes Birkin Bag, or Multi-million dollar property On computer or mobile phone screens, we may indeed be about to be widely adopted-especially for those whose term “base camp” has changed. Dahlström said: “The pandemic has prompted more people to make various types of purchases online and has brought the possibility of remote work.” “We are now seeing a systemic shift, whether it’s where people choose to live or the property they are looking for. type.”
Dynamiq GTT 115 by Studio FA Porsche | JamesEdition.com | $14,350,000
Bain & Company predicts that by 2025, as many as one-third of personal luxury goods purchases will occur online, and digital revenue will reach $136 billion. But the long-term winners of the online market will be those who can adjust to meet the changing needs of consumers.
Federica Levato, a partner at Bain & Company, said at a press conference: “In view of the crisis, the brand was forced to tear up the script and innovate quickly.” “As life is expected to begin to return to normal, customers look forward to establishing technology-based relationships with the brand. Winners need to stay in close contact with the main trends shaping the new normal lifestyle, while maintaining differentiation and creating a narrative that fits their own culture.”
Four companies you need to know
Known as the world luxury goods market, James Edition Possess over 200,000 luxury items, including luxury real estate owned by celebrities; rare supercars such as Pagani, Bugatti and Koenigsegg; jets; yachts and other high-value items through its online platform. The website gets more than 1.5 million views every month from 120 countries/regions around the world.
JamesEdition was launched in Europe in 2008 and has now developed into one of the most famous global brands in the luxury goods market. The company has also established partnerships with Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury® program, which includes the joint listing of all Coldwell Banker Global Luxury priced at more than $1 million.
1stDibs It aims to capture the magic of the Paris flea market as an Internet platform for rare furniture, fashion, fine art and jewelry. 1stdibs was launched in 2000 and organizes lists every week to establish direct connections between vetted sellers and high-end collectors around the world.
The company went public in 2021, and net income for the second quarter ended June 30, 2021 was US$24.7 million, a year-on-year increase of 29%. The gross profit for the same period was US$17.4 million. The number of orders and the number of active buyers also increased significantly during the same period.
Time and Space 24 It has been a global online market for luxury watches since 2003. More than 20,000 professional dealers and private sellers from more than 100 countries provide more than 475,000 watches. The website attracts more than 500,000 visitors every day.
Chrono24 has offices in Berlin, Hong Kong and New York, and is headquartered in Karlsruhe, Germany. Chrono24 recently received a $118 million C series investment. After announcing the company’s best ever figures in 2020 and expected to surpass them in 2021, Chrono24 is seeking to expand outside Europe, recruit top talent, increase global service work, and promote logistics.
Online luxury resale store Women’s clothing collective Focusing on designer fashion, handbags, antiques and jewelry, it claims to be “the world’s leading fashion app”. The Vestiaire Collective’s rolling inventory consists of 3 million items, with 550,000 new items every month.
The company was established in Paris in 2009, with offices in Paris, New York, Hong Kong and Singapore, and a technical center in Berlin. The company recently raised US$216 million and is valued at more than US$1 billion.
