ROLE OF E-COMMERCE IN FACILITATING LUXURIOUS BRANDS

INTEGRATION OF E-COMMERCE IN FASHION & LUXURY

With the emergence of digital era, the enthusiasm of e-commerce shopping has also paved their way to the lifestyle of consumers. The growth of e-commerce took a rapid turn during the pandemic due to the closure of all physical stores. Brands such as H&M, Luis Vuitton, Van Heusen took advantage of this period and developed their own e-commerce platforms to sell and advertise their products. The integration of technology with luxurious brands has their own advantages as it helps them to expand their market reach and exclude geographical barriers. Further, e-commerce has been emerged to social commerce, VR-shopping providing a personalised shopping experience to their consumers.

GROWTH OF E-COMMERCE IN THE LUXURY SECTOR

With the significant growth of e-commerce, brands and retailers have faced a series of risks pertaining to sustainability, as well as several opportunities that aid in shaping the purchase habits of consumers. Some of the key factors responsible for the growth of e-commerce in fashion and luxury industry are:

Shift in consumer behaviour- The pandemic has accelerated the adoption of online shopping as it was sought as a safer option and more convenient than in-person shopping. This increased reliance on e-commerce platforms for purchasing luxury and fashion products due to the closure of physical stores and imposition of strict pandemic guidelines.

Digital transformation- The top-rated brands have invested in enhancing their online presence and e-commerce capabilities through the implementation of user-friendly websites, mobile apps, and virtual shopping experiences to replicate consumer’s in store experience.

 Rise of Social Commerce– The integration of social media platforms with e-commerce has allowed luxury and fashion brands to reach and engage with consumers directly. Furthermore, the influencer marketing and user generated content have played a significant role in driving sales and brand awareness.

EXPANDED MARKET REACH

The growth of online luxury retail has created new opportunities for brands to reach to wider audience and expand their business globally. Luxury brands engage with consumers by leveraging digital marketing and e-commerce platforms and build brand loyalty and drive their sales.

E-commerce has aided the brands in expanding their market reach in several ways.

• Through removing geographical barriers by allowing companies to sell their products and services to consumers across the globe, irrespective of their locality and geographical indication leading to the significantly increased size of the company’s potential market.
• Reducing costs of their products as companies usually tend to reduce the costs of their products by providing coupon codes and offers on special occasions creating a shopping festival for consumers. They also provide free services and shipping services in order to attract more customers.
• E-commerce improves convenience for consumers to shop and purchase products and services. Customers can shop online from their homes anytime. This factor has attracted customers who are busy or live in remote areas.
• E-commerce provides access to wider range of products and services. This enables customers to explore the wide variety of products available in the market than they could find in the traditional brick-and-mortar store as e-commerce companies can stock a wide range of products and services without being limited by the physical constraints of an offline store.
• It enables targeted marketing by collecting data about their customer’s shopping habits and preferences. Further, this data can be used to facilitate customers with relevant products as per their preferences and target them by sending marketing messages and offers which would aid in increasing sales and customer loyalty.

ENHANCED CUSTOMER EXPERIENCE

E-commerce has revolutionized the way consumers shop by providing a personalised and convenient experience. Brands in their e-commerce platforms have incorporated several technologies such as virtual try-on which enables consumers to virtually try on brand’s products. For instance, Lenskart allows customers to virtually try their spectacles and check how the product will look on them before making a purchase, saving their time and reducing the need for returns.

Another technology that has been incorporated by the brands is augmented reality that has enabled customers to visualise products in their own environment. For instance, Amazon and Flipkart usually provide a feature named “check in your room” for furniture. This feature enables consumers to virtually place furniture, décor and other related items in their homes. This aids them to enhance their shopping experience and help them to make more informed decisions.

Brands provide personalised recommendations in their e-commerce platforms to customers by collecting leverage data analytics and using AI algorithms based on consumer’s preferences, purchase history and browsing behaviour. This ensures that luxury consumers are presented with items that align with their individual tastes and interests.

BRAND BUILDING & STORYTELLING

Brands utilize e-commerce platforms to showcase their unique brand story, heritage and craftsmanship. Brand story is the narrative that connects to brand’s history, values and vision with their customer’s emotions and aspirations. They craft a compelling brand story by stating their brand’s purpose of incorporation, its evolution and how they are different from their competitors. This helps them to attract customers by connecting with their emotions and cultural heritage. For example, several geographical indications advertise about their products by travelling to different states and talking about their heritage, product origin and quality.

HOW WE CAN HELP

• Our firm provides expertise in digital marketing strategies, helping brands to effectively promote their products and reach out to wide consumers online.
• Our team offers guidance on website development and optimisation, ensuring that brands have user-friendly and visually appealing online platforms.
• Our experts assist in developing strong logistics and supply chain management systems ensuring smooth operations and timely delivery of products.
• Our professionals provide valuable insights and data analytics to help brands understand consumer behaviour and make informed business decisions.