A Game Changer for Luxury Online Retail

The world’s biggest luxury group, LVMH, is getting ready to launch 24 Sevres, a new multi-brand e-commerce platform and app, selling everything from LVMH and Dior to Gucci and Valentino – this could be a potential game-changer for the online retail luxury sector.

Luxury fashion power player LVMH is stepping up its digital arm of the business, and will look towards legendary Parisian department store Le Bon Marche as inspiration to model its new e-commerce platform.

It’s been increasingly evident that the luxury goods market has faced a dilemma over trying to appeal to a younger, more tech-savvy demographic while trying to preserve its sense of exclusivity that drives up the value and price point of their products – Chanel is an ideal example of this.

E-commerce currently represents only a small portion of the global luxury goods market, with only 7 percent of industry sales. However, this figure is expected to rise to 12 percent by 2020, according to the Boston Consulting Group.

Until now, LVMH has kept its digital strategy completely separate, while other more forward thinking brands like Celine, Fendi and Kenzo have attributed significant resources in its e-commerce operations.

LVMH’s new multi-branded online store, named 24 Sevres, will sell everything from Louis Vuitton to Dior, Prada, Gucci, Valentino and Fendi, offering fashion, cosmetics and luggage products from the brand’s own portfolio, as well as over 150 other labels.

This marks the biggest ever digital investment the luxury french group has ever made, pouring several million euros into this project, following its hire of former Apple music executive Ian Rogers in 2015, to cultivate the company’s digital strategy and capitalise on the online sales expansion in the luxury goods sector.

LVHM’s chief executive, Bernard Arnault, has confirmed the new e-commerce platform will go live on 6th June in over 70 countries.

As it echoes the high-end positioning of ultra chic Le Bon Marche, LVMH’s new luxury online store will compete with established rivals including Yoox Net-a-Porter, My Theresa and LuisaViaRoma.

http://www.powerretail.com.au/news/prada-ecommerce-focus le bon marche

Le Bon Marche store in Paris

Prada recently announced it was falling way behind in its sales and revenue, admitting it was paying the price for its slow adoption of e-commerce into its strategy, and will invest further in its global digital operations in 2017, to develop a stronger omnichannel offering.

However LVMH has caught on to the increasing importance of social media, setting up a new arm of the business called LVMH Luxury Ventures, which will invest in start-up luxury goods products.

Last year LVHM reported online sales of 2 billion euros, equating to 5.3 percent of the group’s overall revenue.

Never miss our best stories. Sign up to Power Retail’s  free weekly newsletter and find our daily stories on Facebook, Twitter and Instagram

 

0 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *