The Future of Bricks and Clicks in Personal Accessories - Part II: Digital Landscape

Emerging markets set to lead growth in internet retailing

Developed markets embraced the digital retailing revolution years ago, but growth can still be found as many brands, especially in the luxury segment, are still in the infancy stages of e-commerce. Meanwhile, emerging markets are catching up, spurred by m-commerce and continued urbanisation.

Consumers are more comfortable with buying low- to mid-priced goods online

Costume jewellery, bags and quartz analogue watches record a higher proportion of internet sales as consumers have fewer reservations about buying non-luxury goods online. Size and suitability continue to hinder internet retailing in luggage and fine jewellery, while consumers are concerned about authenticity and warranties in high-priced watches.

Internet retailing spawns alternative markets and platforms

E-commerce has revitalised concepts such as second-hand luxury, while turning third party merchants such as Asos and Zalando, and online marketplaces such as Tmall, into highly lucrative alternative platforms.

Mono-brand sites make personalisation scalable

Engraving, monogramming and self-design applications offered through brand-owned e-commerce are making it easier than ever for brands to consolidate and streamline the production process of customised accessories.

Omnichannel is the future of retailing

Most brands have embraced multichannel, but few are able to boast omnichannel status. However, omnichannel retailing provides the flexibility, convenience and constant availability that consumers expect from brands in the digital age.

Retailers increasingly embrace “phygital”

With footfall in physical retailing falling, retailers look into bringing consumers back into stores by improving the in-store experience using technology such as VR. Meanwhile, pure play internet retailers look to establish physical presence.