Giovanni Cirillo’s Post

Luxury Ecommerce is in Trouble Out of all the most popular luxury ecommerce retailers only one is profitable. German luxury ecommerce retailer Mytheresa. ➖ Luxury Ecommerce Retailers in Decline FARFETCH narrowly avoided bankruptcy and MATCHES recently went into administration. #farfetch YOOX, NET-A-PORTER and SSENSE are private companies and have not shared recent revenue or profitability figures. Yoox and Net A porter made a loss of at least $137 million in 2023. SSENSE hasn't shared profit figures which would suggest it doesn't make money. ➖ Popular but Not Profitable The websites of popular luxury ecommerce websites receive billions of visitors every year yet they haven't been able to turn this popularity into profit. #luxuryecommerce This highlights my opinion that it's not how many customers you have but what kind of customers. #luxuryecommerce ➖ Luxury Ecommerce Needs to Change Luxury ecommerce in my opinion is no longer fit for purpose. The market has changed and so has the customer. #luxurycustomer It will need to evolve. Not just the big online born players but also luxury brands will need to evolve their ecommerce strategies. Scientia est Potentia - Knowledge is Power #luxuryecommerce #thefreshkid

Interest data and analysis to reflect on: how should online sales channels evolve? Is it still about profitability or about marketing purposes in an multichannels vision? If so, how values should become primary on online channels to create loyalty, transparency and reliability putting sales in second place?

Best on the luxury market

The era of "easy money" is over for luxury e-commerce sites. Luxury fashion has always been challenging in the e-commerce space, but COVID encouraged luxury shoppers to buy luxury goods online, and platforms selling multiple luxury brands flourished. Since the end of the pandemic, luxury e-commerce sites like Farfetch have struggled to stay afloat. Luxury is difficult to sell online, particularly on sites that sell multiple brands. Is e-commerce just not suited for the luxury sector? Or is the multi-brand platform the issue? https://lnkd.in/gSknZe3C

🌟 LUXURY E-COMMERCE / LOGISTICS and CONSUMER'S CHOICES 🛍 Challenges Ahead: Luxury E-Commerce Faces Tough Times Ahead US consumer spending at online luxury sellers such as Farfetch, Matches, and Net-a-Porter experienced sustained declines in 2023. The question now looms: Is this downturn a temporary setback, or does it signal deeper issues with the luxury e-commerce model? - Luxury e-commerce has seen remarkable growth, outpacing the overall luxury market according to data from Coresight Research. However, challenges persist for online luxury sellers like Farfetch, Matches, and Yoox Net-a-Porter, with sales declines and acquisitions shaking the industry. - Despite hurdles, players like Mytheresa have shown resilience, recording a 12% sales increase in the quarter ended September 30. Yet, operating costs remain high and competition from brands' direct-to-consumer sales looms large, threatening the relevance of multi-brand retailers. Without adaptation, luxury e-commerce companies risk becoming obsolete. - Analysts at Bernstein caution that without compelling personalization or differentiated customer propositions, luxury aggregators could face a fate similar to department stores. Let's stay tuned to see how the industry navigates these challenges! #LuxuryEcommerce #OnlineRetail #IndustryInsights #ecommerce #logisticssolutions #returnsmanagement #overproduction #overconsumption #sustainability #AdaptationIsRequired 🛍️📈 Source: https://lnkd.in/dRTwb52Q

In the dynamic world of e-commerce, change is the only constant. The recent turbulence experienced by Farfetch, a leading player in the luxury e-commerce sector, is a testament to this reality. According to an article by Business of Fashion, Farfetch's once-booming luxury e-commerce model is now facing challenges. The golden era of online luxury shopping appears to be waning, but does this signify the end or merely a new beginning? The world of luxury is not fading; instead, it's evolving. Customers crave experiences that are authentic, personalized, and seamless. They're looking for more than just products; they want stories, emotions, and connections. And yes, they're still looking for a new kind of luxury. What does this mean for businesses like ours? It's simple: adapt or risk irrelevance. It's time for us to redefine luxury, to make it more inclusive, sustainable, and personal. It's time for us to use technology not just as a tool but as a catalyst for creating meaningful brand-consumer relationships. The future of luxury e-commerce is not over; it's just getting started. And at Hone Ventures, we're excited to participate in this evolution. What are your thoughts on the changing dynamics of the luxury e-commerce sector? Share your insights in the comments below! #LuxuryEcommerce #DigitalTransformation #CustomerExperience #Innovation #HoneVentures

Luxury brands are reinventing themselves in the face of change-wondering how luxury brands are shifting gears in this new era? As luxury retailers like Farfetch and Matches change hands, the industry is shifting its focus to providing unforgettable in-store experiences. Interestingly, online sales are bouncing back to pre-pandemic levels. Simultaneously, luxury brands are reevaluating their wholesale and digital strategies, impacting multi-brand retailers. Additionally, luxury ecommerce platforms are facing challenges from limited product offerings and competition from the brands' own digital platforms. However, some luxury e-tailers are resorting to discounting to attract customers. While it may boost website traffic, it could strain their relationships with luxury brands. In these times, ecommerce platforms like Shopify's enterprise offering present an attractive alternative, enabling brands to take control of their retail journey, from sales forecasting to providing a unique value proposition. To understand these changes in depth and to get an idea of what the future holds for luxury ecommerce, I recommend this insightful article: What's Next for Luxury Ecommerce in 2024 https://lnkd.in/eifqjp7p #LuxuryIndustry #RetailTransformation #EcommerceRevolution #ShopifyEnterprise

Andrew Burnstine Ph.D discusses Luxury E-commerce, and whether or not it can be fixed, on the Retail Matters Podcast US consumer spending across online luxury sellers like Farfetch, Matches and Net-a-Porter suffered sustained declines throughout 2023. The question is whether the downturn is simply temporary or the luxury e-commerce model itself is broken. Luxury e-commerce faces unique challenges compared to other sectors due to the emphasis on exclusivity, personalized experiences, and the tactile nature of luxury goods. Factors like maintaining brand image, combating counterfeits, and replicating the in-store experience online contribute to the complexities. Additionally, the high-touch nature of luxury sales often necessitates human interaction, which can be difficult to replicate digitally. Despite these challenges, there are opportunities for luxury e-commerce to innovate and adapt to changing consumer behaviors and technological advancements.

What’s next for luxury e-commerce in 2024? As 2023 drew to a close, the luxury sector was dominated by the financial struggles of some of its biggest multi-brand retailers: Farfetch and Matches. After weeks of speculation, both businesses were sold within days of each other in December - Farfetch to Korean e-commerce giant Coupang and Matches to Frasers Group. As luxury consumers move increasingly towards shopping DTC and bricks and mortar, Drapers asks luxury fashion experts, recruiters and analysts: has the luxury e-commerce bubble burst? Read more in this Drapers article here 👉 https://lnkd.in/eAadvEFC #Luxury #Ecommerce #Fashion #Brands #Retailers #Businesses

Insightful on Luxury eCommerce - In Luxury what worked so far is deeper understanding of customer base than any other vertical , today with amount of personalisation , Audience manager and CDP and advanced Analytics retailers can serve their Critical mass effectively. - it’s an high margin business and need to run like one , with poor assortment or lack of Merchandise intelligence end up going steep markdowns and push to outlet / secondary - today shipping and delivery service is highly mature , with better margins at products level and retailers can easily maintain discipline in their operating cost with optimising resources - Returns is what kills fashion retailers, its higher lack of tech and predictve knowledge will drain ecommerce , its biggest flush - in current AI Automation while Content pipeline till execution is at lowest cost , - Creativity cost is lowest in last 2 decade Most e-commerce retailers miss the basics while operating in high access of data and poorly leverage the decision intelligence, and execution disciplines! Knowing customer and deeper intelligence on Merchandise will make effective