In 2016, eCommerce sales globally amounted to $22.049 trillion, a growth of 6.0% from the previous year. Between now and 2020, that figure is set to sit closer to $27 trillion.
“There is so much opportunity when it comes to ecommerce, especially the subscription business model. It’s something everyone is doing now so if you’re not there, you really need to get there,” says Jed Comyn on stage at Expand London.
There is, according to Jed, a tendency for high end brands to favour the exclusivity of only having a physical retail space.
“Now we’re really seeing great growth and numbers in the ecommerce sector and that is pushing people there,” he says.
Luxury brands have had a hard time adapting to the digital space, something Nena Chaletzos believes is derived from the fact that luxury is as much about service as it is about product.
“To try to replicate a service that is very much based on human interaction and empathy is a very difficult thing to do. Some of the luxury brands are nervous about going online and losing that human service,” says Nena.
David Nefs believes it comes down to control.
“You’ve got your existing relationships with boutiques that you trust and putting that online loses that element of control which is important for their brand,” he says.
Nena explains that Luxtripper have counteracted this loss of control by using digital softwares to create personalised packages for customers.
“We’re replicating the travel agent online by understanding what the consumer wants,” she explains.
“The human element is key to our business model. We have our developers sit with our travel agents to understand what they do and think ‘how can we make that better with technology?’” says Nena.
The human element is one way of easing the customers concern.
“With luxury, we’re still a far way off from people spending £15,000 online – they might want some touch of comfort from having someone there,” concludes Nena.
Find out more about the Future of eCommerce by tuning in to the full panel discussion below.