Luxury e-tailing market 2023-2027: A descriptive analysis of five forces model, market dynamics, and segmentation

NEW YORK, Jan. 23, 2023 /PRNewswire/ — According to Technavio, the global luxury e-tailing market size is estimated to grow by USD 27,533.22 million from 2023 to 2027. The market is estimated to grow at a CAGR of over 8.44% during the forecast period. Moreover, the growth momentum will accelerate.  APAC will account for 49% of the growth of the global market during the forecast period.

Technavio has announced its latest market research report titled Global Luxury E-tailing Market 2023-2027

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Global luxury e-tailing market – Five forces

The global luxury e-tailing market is fragmented, and the five forces analysis covers–

  • Bargaining Power of Buyers

  • The threat of New Entrants

  • Threat of Rivalry

  • Bargaining Power of Suppliers

  • Threat of Substitutes

  • Interpretation of porter’s five models helps to strategize the business, for entire details – buy the report!

Global luxury e-tailing market – Customer landscape 

The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global luxury e-tailing market – Segmentation assessment

Segment overview

Technavio has segmented the market based on product (personal luxury, food and wine, and home accessories) and channel (multi-brand and mono-brand).

  • The personal luxury segment will grow at a significant rate during the forecast period. The preference for online shopping is increasing, with the growing Internet penetration rate and the increasing number of smartphone users worldwide. A wide range of premium personal goods are available online in various categories, price ranges, and brands. Major manufacturers of personal goods such as cosmetics are expanding their professional skincare e-retail businesses to gain a competitive advantage over Internet-only retailers. They are building their own web portals and creating partnerships with other distributors to sell professional skincare products online. For instance, Beiersdorf AG has its online presence in China in partnership with NetEase Kaola. Such partnerships can help increase the online sales of luxury personal goods during the forecast period.

Geography Overview

By geography, the global luxury e-tailing market is segmented into APAC, North America, Europe, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global luxury e-tailing market.

  • APAC is estimated to account for 49% of the growth of the global market during the forecast period. The growth of the market in APAC is driven by factors such as the growth of the real estate sector for residential and commercial properties. Japan, China, and South Korea are the key revenue contributors. In addition, wide product portfolios and the launch of new and innovative products will also fuel the market growth during the forecast period. The growing Internet penetration is also expected to drive the online sales of luxury products in APAC.

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Global Luxury E-tailing Market – Market Dynamics

Key factor driving market growth

  • The rise in online spending and smartphone penetration is notably driving the luxury e-tailing market growth. 

  • The popularity of online shopping through smart devices increased over the years due to the high penetration of Internet services, improved economic growth, and the fluid interfaces of mobile applications.

  • Security features of online payments, free delivery, improved online services, and the customer-friendly designs of shopping websites are also contributing to the growth of the market.

  • Moreover, the focus on m-commerce has increased, with the penetration of smartphones and the generation of more opportunities for buyers. These factors will fuel the growth of the market during the forecast period.

Leading trends influencing the market 

  • Multichannel marketing is a key trend in the luxury e-tailing market. Social media plays a major role in increasing awareness about a product. Consumers use social networking and blogs to learn about premium cosmetics products.

  • Hence, vendors are using platforms such as Facebook, Twitter, Instagram, and YouTube to increase awareness and promote their products.

  • Many brands partner with social media influencers to increase the popularity of their brands.

  • Thus, factors such as the increasing penetration of the Internet and smartphones and the growing number of customer-engagement practices by vendors of premium cosmetics have contributed to the overall sales volume and revenue of market vendors over the past few years.

Major challenges hindering market growth

  • Strict competition from offline channels may impede the luxury e-tailing market growth. 

  • Consumers prefer to buy premium products such as personal care products, wine, spirits, home decor, home furnishings, and furniture from offline stores, as they can examine the products physically before purchasing.

  • Moreover,  many consumers are hesitant to perform high-value transactions online due to cybersecurity concerns.

  • The offline segment of the global home decor market is influenced by the increasing number of product-specialty stores and brand-specific stores. Thus, offline stores pose a major threat to the global luxury e-tailing market.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this luxury e-tailing market report?

  • CAGR of the market during the forecast period

  • Detailed information on factors that will drive the growth of the luxury e-tailing market between 2023 and 2027

  • Precise estimation of the luxury e-tailing market size and its contribution to the market in focus on the parent market

  • Accurate predictions about upcoming trends and changes in consumer behavior

  • Growth of the luxury e-tailing industry across APAC, North America, Europe, Middle East and Africa, and South America

  • A thorough analysis of the market’s competitive landscape and detailed information about vendors

  • Comprehensive analysis of factors that will challenge the growth of luxury e-tailing market vendors

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Luxury E-tailing Market Scope

Report Coverage

Details

Page number

162

Base year

2022

Historic period

2017-2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 8.44%

Market growth 2023-2027

USD 27,533.22 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

7.76

Regional analysis

APAC, North America, Europe, Middle East and Africa, and South America

Performing market contribution

APAC at 49%

Key countries

US, China, Japan, Italy, and France

Competitive landscape

Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks

Key companies profiled

ASOS Plc, Authentic Brands Group LLC, Bed Bath and Beyond Inc., Burberry Group Plc, Charms and Chains, Compagnie Financiere Richemont SA, Crate and Barrel, Harrods Ltd., Hennes and Mauritz AB, Hermes International SA, Hudsons Bay Co., Inter IKEA Systems B.V., Kering SA, Luxuryperfume.com Inc, Moda Operandi Inc., Nordstrom Inc., Ralph Lauren Corp., SDI (Brands 2) Ltd., CHANEL Ltd., and LVMH Moet Hennessy Louis Vuitton SE

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Product

7 Market Segmentation by Channel

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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