"Luxury fashion market is the best business to be in for shareholders. Bigger than telco."
Scott Galloway, Professor of Marketing at NYU Stern discusses on the panel Prestige 3.0 with Goga Ashkenazi, Chairwoman of Vionnet a French haute-couture brand, Paul van Zyl, Co-Founder & CEO of Maiyet, José Neves, CEO & Founder of farfetch.com (unites Europe's best, designer boutiques in one, online) and Sanjiv Singhof Lacoste about how brands operate with the notions of prestige, e-commerce, data and fashion.
“E-commerce and digital media is extremely important today.”, says Goga Ashkenazi. In 2010 68% of affluents indicated they purchased a product or service via the internet. In 2011 the percentage jumped to 92%. And it increases. Singh (Lacoste): "E-commerce is hugely important for rejuvenating luxury brands. They discover products online and then buy them.”
Fashion brands benefit hugely from the social networks, like Facebook, Twitter, Tumblr or Pinterest. "People are in a shopping mood when they are on Pinterest", Galloway explains. It’s not anymore that important to have a shop in the first place, it is important to have a relevant and creative digital showroom, where customers get in a “shopping-mood”.
Why luxury consumers cite for shopping online? First of all, they want to avoid sales assistants, they have more variety, bargains, a limited proximity and convenience. Of course it is extremely important that people can shop luxury goods from all over the world. The new technology makes it possible. In China 66% “go shopping” with their smartphones, 39% with their tablet. In the US 44% use smartphones, 11% tablets. The Chinese also buy more european luxury goods, than the Europeans do.
In 2025, there will be 600 million more consumers in this market.