Forrester’s global forecast of the luxury retail market reveals sales are booming: eCommerce drove 39% of luxury sales growth in 2017 – a number that is expected to rise to 59% by 2023. According to the forecast, the four main growth factorare: 

  1. Income growth, especially amongst millennials in China. In the last two years, income grew by 15% in China and almost half of China’s luxury shoppers in 2017 were under 30. 
  2. Online growth from luxury retailers like Moda Operandi, Farfetch, MATCHESFASHION.COM and Secoo, which grew sales by more than 40% in 2017. In the US, the share of luxury shoppers purchasing online began catching up with those purchasing offline, reaching 50% and 64% respectively.  
  3. Offline growth, which will continue to drive luxury goods sales. Michael Kors, for example, experienced 61% of its sales in-stores.  
  4. High-spending individuals. More than 90% of the world’s affluent consumers buy luxury products and services.  

The forecast also includes data about how both convenience and strong online and in-store is driving online luxury shopper spend. Click here for more information.