Inside the European Luxury Report

Following steady growth across much of the 2010s, European luxury online sales have flattened out since the pandemic, with the sector recording virtually no growth from its €15.5bn level in 2021. Indeed, 2023 brought a small downturn to €15.4bn, as against €15.52bn in 2022.

But the sector is still buoyant, with more consumers choosing to buy luxury than ever before. For 92% of consumers, it is quality that drives them to buy, far ahead of other factors, including brand reputation (63.2%) and fashionableness (42.3%).

European luxury retail sales are dominated by fashion, which generates €5.9bn, more than a third of the sector’s total revenue in 2023. Luxury cosmetics accounted for €4.1bn. This is backed up by RetailX’s ConsumerX consumer data, which shows that luxury fashion and apparel was the segment most likely to generate multiple purchases among 43% of shoppers.

The largest single group buying luxury fashion are GenZ-ers, with 56% in this cohort saying they have made multiple luxury fashion purchases in the past year.

EU luxury ecommerce is tempered by shoppers being wedded to the theatre and experience of physical retail. On average, 48.4% of European consumers prefer in store, yet these generate 85% of revenues. This is way more than the 30% who shop online. Interestingly, it is the young GenZ shoppers who buck this trend, with 54.1% of them drawn to shop in physical luxury stores – almost 10% higher than all other shoppers. 

Consumer research shows that 79.5% of all European luxury shoppers are interested in buying sustainably. While consumer data shows that 31.5% of European shoppers say that they wouldn’t pay more for sustainable luxury, the remaining 68.5% – more than two thirds – say they would.

The flattening out of European luxury revenues seen in 2023 is set to continue, however. Data shows that 57.3% are expecting to spend the same amount in 2024, while 27.5% will be lowering their luxury spending.

Luxury Company Profiles

Our analysis of the European luxury market  is illustrated with company profiles showcasing the nine retailers standing out in the market. Each profile offers company profit and sales figures, share price and web traffic as well as a review of what makes their business exemplary.

• Coach
• Farfetch
• Gucci
• Guerlain
• Longines
• Louis Vuitton
• Lyst
• Pandora
• Ray-Ban

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The Bluepaper looks at the current challenges for the industry, the disconnects that can occur between consumer behaviour and retail’s selling response, especially when shoppers are browsing and buying across multiple channels. 

Inside the Bluepaper

In this InternetRetailing Bluepaper we examine how to achieve the retail experience operating at its peak: a point where the retailer has data about the consumer, their needs, attitudes and behaviours, and is able to act upon it in the moment. A real-time moment, in which pre-set business rules make a decision about new data, causing an action to be carried out. To do this the bluepaper breaks down the subject into 6 sections:

• Don’t miss the moment: ensure up-to-date data is utilised without creating bottlenecks
• How Tealium’s CDP enables a response in milliseconds
• How to turn real-time capabilities into valuable use cases
• Case Study Kvik: gaining from real-time action
• Considerations for a CDP to drive future customer engagement
• Key considerations for cross-business buy-in

Real-time data can make a big impact

• Personalised Recommendations Based on Current Behaviour: Suggest products on your site based on the last item a customer viewed on their phone.
• Context-Aware Promotions: Offer deals tailored to the customer’s current location or the weather.
• Immediate Suppression: Remove buyers from product campaigns as soon as they make a purchase, preventing wasted budget and improving their experience.
• Event-Triggered Campaigns: Launch a personalised experience right after a customer downloads your app.
• Instant Insights: Feed conversion data to APIs in real-time for immediate insights, ensuring data quality and accurate attribution.
• Contextual Customer Support: Equip support agents with insights into the webpages a customer visited or the campaigns they engaged with before calling.
• Real-Time Sales Follow-Up: Enable sales reps to call back new leads with insights into their behaviour right before they submitted a lead form.
• Consent and Privacy Compliance: Display all stored data for a customer upon request, including their most recent behaviour, and honour customer consent across multiple devices.

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To truly thrive in international markets, businesses must meet shoppers in their regions, considering not just language and currency but also tailoring their merchandising strategies to regional preferences, trends, and shopping behaviours.

In the recent RetailX Top1000 EU listings, Crownpeak powers nearly a quarter of the Top50 EU retailers. This paper helps to uncover the best practices and great examples of those who are thinking global and acting local with product discovery combining search, merchandising, and recommendation strategy into one solution.

In this ebook we explore the art of thinking globally but acting locally in more detail, looking first at the definition of localised retail and at the prevalence of cross-border retail, based on exclusive research of retailers within the Top1000 Europe list.

Next, we examine what you need to consider to think global and act local, and how deep you should go with localisation.

In our best practice section, we profile retailers and brands that are putting such strategies into action, including La Redoute, Mango, Kurt Geiger and Harvey Nichols.

How to localise your business for ecommerce success

We conclude with five tips for localised ecommerce success. We find that mastering global ecommerce merchandising requires a nuanced understanding of regional preferences, trends, and trading behaviours.

• Understand regional preferences
• Tailor campaigns and product assortment to local trends
• Language localisation
• Optimise for search intent
• Continuously iterate and adapt

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For years AI seemed like a technology that was just over the horizon, however OpenAI’s ChatGPT has now made this future a reality. While many in digitally driven sectors had long understood the possibilities here, this was nevertheless a moment that brought the imperative to develop AI business strategies into sharp focus.

In this ebook we break down data strategy challenges and offer a roadmap to an AI-powered future in retail.

Our ebook gives insight into an AI-powered future, and the methodical approach needed to avoid getting caught in an AI bubble. We also explain the necessity of high quality, consistent data for AI applications. We discuss the retail media opportunities that can be utilised at point of purchase and browsing, through AI-driven insights essential for targeted, contextual marketing success.

The report examines the benefits of seamless data access, which is key to the success of an AI-powered retail future and we explore Snowflake’s Data Cloud which enables agile, comprehensive data utilisation and cloud collaboration.

Watch: “Dunelm’s move to ‘Total Retail'”

In April 2024, Jeff Howarth, Director of Data Engineering with Dunelm, Snowflake’s Paul Winsor and Ian Jindal of InternetRetailing sat down to discuss the Dunelm’s move to what it calls ‘Total Retail’.

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Through datagraphics the report will illustrate highlights from each report and, when brought together, illustrate the breadth and depth of RetailX research and coverage. The datagraphics featured in the report are from our three main RetailX research categories:

RETAIL PERFORMANCE

Since 2014, RetailX has researched more than 11,000 retailers and direct-to-consumer brands, assessing and ranking their performance on more than 300 metrics. We produce the only objective, performance-based ranking of Europe’s retailers. Our influential annual reports include the UK Top500, The EU Top1000 and the UK Growth 1000.

COUNTRY REPORTS

Our Country and Regional Reports provide a clear overview of the state of commerce in each country, blending data from ecommerce and trade associations with national and European government data, our own research and other sources. Our reports provide an authoritative, comprehensive and accessible view of the ecommerce trends, facts and figures in each territory. Our new 360º Country and Region reports combine company, consumer and regional analysis.

SECTOR REPORTS

RetailX reports provide the strategic and commercial context in which the best retailers and brands perform in their market sectors. Combining in-depth company performance research with analysis of sector dynamics, retailers will gain a better understanding of the current state of our sector, as well as a lens through which to glimpse the coming two-to-five years.

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The report will showcase the most recent RetailX/ConsumerX research into UK shopper expectations – spanning from fulfilment to subscriptions, from loyalty to sustainability, and beyond. It underscores how customers are continually seeking avenues to shop smarter, where competitive pricing is juxtaposed with the convenience of their shopping experience.

The UK Growth 1000 serves as an invaluable resource for both established online sellers and those seeking to enhance their online selling capabilities. This year’s report will rank the 1,000 companies that trail the RetailX UK Top500 (published in February 2024). These entities, while not yet attaining the scale of the largest retailers and brands, play a pivotal role in the UK economy. Despite challenges, they exhibit a highly agile and resilient approach to online selling and omnichannel strategies.

Our analysis is complemented by case studies that illuminate the pragmatic approaches adopted by Growth 1000 retailers.

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The Growth 3000 list paints a vivid picture of the expansive landscape of retail encompassing the 32 markets of the European Union, European Economic Area, as well as the UK and Switzerland.

Throughout the pages of the Europe Growth 3000 2024 report, we will scrutinise how these 3,000 retailers, brands, and marketplaces innovate and add value to their operations amidst persistent external economic challenges.

Delve into case studies spotlighting pioneering efforts by companies such as Alpkit, King Jouet, Top Secret and Elbenwald illustrating how they navigate and thrive within the evolving retail landscape.

Pre-register now to read more about a landscape where standards are elevated to meet the escalating customer expectations, encompassing both small and medium-sized enterprises constituting the Growth 3000 and their larger counterparts alike.

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With a population of approximately 29 million and a growing appetite for international and global brands, coupled with recent trade agreements, the Benelux Region presents an opportune moment for retailers to explore strategies for effectively serving this market.

This report will  serve as a valuable resource for businesses planning to enter or expand within the region, offering insights into consumer expectations spanning from fulfilment to payment methodologies and beyond.

Report Highlights:

• Rankings of the foremost retailers, brands, and marketplaces catering to the Benelux market.
• Analysis dissecting the intricacies of the Benelux e-commerce landscape.
• Exploration of imperative trends and emerging opportunities for businesses targeting the Benelux market.
• In-depth case studies featuring eight leading retailers, illustrating their approaches to online sales and omnichannel strategies in action. Companies highlighted include Albert Heijn, bol.com, Coolblue, and Zalando.
• Key takeaways emphasising the rapid development of the Benelux region as a burgeoning e-commerce and multichannel market.

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The Nordic region comprises Denmark, Finland, Iceland, Norway, and Sweden, each with its distinct cultural nuances and consumer behaviours. Despite the shared geographical proximity, these nations exhibit varying trends in sports participation, consumer spending habits, and brand preferences. Understanding these subtle differences is crucial for retailers and brands seeking to establish a foothold or expand their presence in this competitive market.

The report will examine the Nordic sports retail landscape and prominent players such as XXL, Stadium, and Intersport. We will study their strategy and their expansive store networks coupled with their robust online platforms.

One of the defining features of the Nordic sports retail market is its emphasis on sustainability and outdoor activities. With abundant natural landscapes and a culture deeply rooted in outdoor pursuits, Nordic consumers prioritise eco-friendly products and brands that align with their values of environmental stewardship. Companies like Helly Hansen, known for their sustainable practices and durable outdoor gear, have garnered a loyal following in the region by tapping into this ethos.

Pre-register now for this report and get under the skin of  the Nordic sports retail market. By understanding the unique dynamics of this region, stakeholders can tailor their strategies to resonate with Nordic consumers and capitalise on emerging trends.

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This will examine market fundamentals, delve into the preferred shopping methods of Australians across multichannel retail platforms, and highlight the leading retailers, brands, and marketplaces operating within the nation.

This report will serve as an indispensable resource for businesses intending to enter or expand within Australia, providing insights into consumer expectations spanning from fulfilment to payment methodologies and beyond.

Report Highlights:

• Rankings of the top retailers, brands, and marketplaces serving the Australian market.
• Analysis shedding light on the nuances of the Australian e-commerce landscape.
• Examination of crucial trends and emerging opportunities for businesses targeting Australia.
• In-depth case studies featuring eight leading retailers, showcasing their approaches to online sales and omnichannel strategies in practice. Companies highlighted include Coles, Kmart, JB Hi-Fi, and The Iconic.

As Australia continues to assert itself as a significant player in the global retail arena, understanding its unique dynamics and consumer preferences becomes increasingly vital for businesses aiming to thrive in this dynamic market landscape.

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