A couple of years ago, buyers hesitated from buying high-end luxury products online. But things have changed drastically now. Online marketplaces that sell exclusive designer and luxury products online are thriving.
From well-travelled to aspirational buyers
Online luxury portals like RockNShop, Exclusively, Pernia’s Pop Up Shop, Luxepolis, Elitify and others are experiencing huge growth. From clothes, home décor, fashion accessories and beauty products, customers want to own high-end luxury brands irrespective of the heavy price tags.
Etailers feel that buyers’ desire to own luxury brands is fueled by exposure to global fashion trends through affordable travel, movies, television and social media.
“There is money in these markets, but there is no access to luxury brands. As Indians acquire global tastes thanks to affordable foreign vacations, influence of Hollywood and Bollywood, and the Indian diaspora, they are looking to own foreign luxury brands,” said Vijay K.G., CEO and founder of Luxepolis.
Aspirational buyers with purchasing power from small towns and cities of India are treating themselves to Dior, Gucci, Emporio Armani, Hermès, and Chanel. This was made possible by ecommerce as buyers from India’s Tier I and II cities, where brick-and-mortar stores of premium brands don’t exist, got access to luxury products, discounted & pre-owned items and EMI payment facility through online shopping sites.
The growing Indian luxury market
IOS had earlier reported how India’s luxury market is growing at CAGR of 25% and it will exceed $18.3 billion by 2016. It has also been observed that 85% of prospective buyers search for luxury brands online. Therefore, it doesn’t come as a surprise that online luxury shopping trend is growing exponentially.
Demand from non-metro cities is one of the biggest reasons why online luxury market is growing in India.
In one of IOS’s interviews, Inthree’s founder Ramachandaran Ramanathan had stated, “The biggest problem is we look at a rural market from urban flavour and from patronizing eyes. The buying power, what pace they can buy, buying preferences, everything changes with district to district. But overall they are aspirational customers. Not very different from urban buyers.”
It’s heartening that ecommerce is enabling aspirational buyers from small towns to buy whatever they wish to – be it a Pillow or Prada.