Online shopping for luxury brands grows in India

Online luxury shopping is all set to get a boost. A recent Assocham study states online luxury stores will see an influx of 35 billion dollars (Rs 23,290.75 crores) in 2016 which will double by 2020. Through 2017-18 the market is expected to grow at a compounded annual growth rate (CAGR) of 27 per cent.

Growth drivers aplenty

In recent years, Indian consumers’ have been exposed to the latest international trends and fashion thanks to the internet and a rise in disposable incomes. Earlier, only a certain class of high net-worth people could afford luxury goods that too only when they travelled abroad. But with e-commerce, many sites have opened up which bring in international luxury players to the Indian consumers. However, it’s the rise of the influence of western culture over the Indian retail market that has been the biggest sales driver of luxe products. The other factor is the rise in internet penetration. About 140 million people in the country are using internet and more than 75 per cent users are youngsters who like to experiment with luxury brands.

Also, the internet has made global fashion brands such Versace, Armani and others familiar to Indian consumers who today have the disposable income to spend on these big names. A rising middle class has also given a boost to the luxury brands to reach out to them. In fact, many luxury brands are now looking beyond the rich and elite to sell their goods. What, however, has made it all possible is the accessibility of these brands with luxury malls and sites dedicated to luxury products coming up. Customers find it easy to shop these products at a reasonable price.

Innovative methods to woo customers

Unlike in the past, when companies relied on research into consumer behaviour, companies now invest in understanding the social networking behaviour of the customers, their choices and preferences. A study has found that on an average an internet user spends nearly 25 per cent time on social media. So, now luxury brands develop interesting content to draw consumers’ attention on social media. Advertising on social media helps to target potential customers.

Apart from this, luxury brands are also going in for offline stores so that customers get an in-store experience. The other popular trick is to offer attractive discounts and deals which always works to draw customers. Even online partnerships with other brands help the luxury brands to effectively sell their products. It actually helps the brand to expand its customer base and reach out to more people. Also, keeping the customers’ convenience in mind has helped luxury brands to reach out better. By offering services like cash on delivery, EMI and free return policies, the online brands have gained loyalty and confidence of Indian buyers.