Retail distribution in personal accessories has undergone upheaval in recent times. The evolving landscape has internet retailing as a rising star, whereas traditional stalwarts, specialist retailers and department stores, struggle to regain identity and renewed purpose. This report pinpoints the key forces driving fundamental shifts in store-based retailing and analyses the focus areas and future opportunities in store for specialist retailers and department stores.
Store-based retailing is dominant even though growth has been stagnant. Instead, lost share is increasingly being attributed to internet retailing, which offers advantages such as cost-effectiveness and convenience.
Emerging markets such as those in Eastern Europe, India and South Africa have relied on traditional non-grocery retailers, led by open-air markets, for personal accessories sales, but specialist retailers and increasing mobile penetration are contributing to growth in modern retailing.
Although luxury internet retailing is growing rapidly, the fact remains that luxury brands have been slow and reluctant to adopt e-commerce. Consumers continue to worry about product authenticity and buying an expensive product that they have never seen or touched personally. In luxury watches, warranty remains a key concern and driver for store-based sales.
More brands are seeking to move revenue from wholesale to direct-to-consumer to gain more control over, and insight into, the supply chain and their customers. The wholesale channel has been marked with excessive discounting in recent years, creating a highly promotional environment and discount-addicted consumers.
Department stores are sluggish in performance in North America due to pressure from other channels and tectonic shifts in the way consumers now research and buy, but are thriving especially in Asia Pacific. Rejuvenation could come in the form of less discounting, a move towards the concession model, and introduction of fresh and up-and-coming brands.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page