Looking ahead to 2025, one in three sales of high-end products is expected to be digital.
The high-end and excellence sector has undergone a revolution in the last decade, which has brought about important changes that lay the foundations for the present and future of this industry.
Specifically, since 2011, the sector has undergone the most important changes due to the impact of technological development on society, with all that it entails. The new generations, raised as technological natives, have generated new behaviour, interaction, and consumption models. Thus, in these ten years, the sector has been growing at a rate of 5% per year, reaching revenues of 1.3 trillion euros worldwide in 2019, according to data from Bain & Company.
The online channel has taken off in this decade because, in 2012, online sales did not reach 4% of the sector’s total income. They began to grow at a rate of 25% per year to represent 12% of total sales in 2019. The pandemic only accelerated this trend and caused this percentage to grow to 23% of total luxury income in 2021. The forecast is that in 2025 the percentage will be 30%. That is, one in three sales of high-end products will be digital.
High-end and Excellence Companies and Firms Belong, Condenses This Transformation Into Ten Trends
1.- The irruption of eCommerce: the digitization of commerce in the luxury sector
2.- The emergence of the new generations: from the physical experience to the ‘physical experience.
3.- Social networks as an aspirational catalogue: the new communication of luxury
4.- The rise of Asian tourism in the West
5.- New consumption: from the product to the personalized experience and emotion
6.- The extension of the concept of luxury beyond fashion, accessories and the automotive industry: masters, art and wellness
7.- Sustainability and corporate social responsibility as challenges and the basis of the business model
8.- The enhancement of the concept of the artisan
9.- The identification of the brand with a history and tradition
10.- A family tradition as a business model of excellence