With luxury lawyers gearing up for the Luxury Law Summit in April, new data reveals spending is on the rise in US online luxury fashion sales.
US online sales of luxury fashion items are showing significant growth coming from each of the key segments: footwear, accessories, and apparel. The new US ‘Luxury E-commerce Report’ from The NPD Group shows that much of the nearly 50 percent increase in dollar sales seen in recent years across these segments is attributed to an increase in buyer spending.
Marshal Cohen, chief industry advisor at NPD Group, says ‘the luxury market is evolving, new brands are getting attention, and online retailer platforms are elevating the competitive landscape.’ He explained, ‘the younger, multi-ethnic demographic that is more attracted to purchasing designer products online - even more than the average online accessories, footwear, or apparel buyer - is a major contributor to this evolution.’ The biggest spending increase within the online luxury market came from apparel; growing 17 percent to an average of $716 spent per buyer. While the frequency of online purchases held steady for luxury apparel and fashion accessories both segments saw increases in the amount consumers spent on those purchases. Fashion accessories increased their average online luxury spend per buyer by 5 percent, to $782.
Nearly half of the online luxury fashion dollar sales come from footwear, which has the highest average annual spend per buyer and annual purchase frequency. The average online luxury footwear spend increased 4 percent to $794, and purchase frequency also increased slightly to 1.6 times per year. Mr Cohen says, ‘it's not just about the statement bag anymore, now, thanks to expanded accessibility, the statement shoe is also an area of focus and investment for consumers.’ He concluded, ‘if we pay attention to what consumers are saying, these new market dynamics spell a great deal of opportunity across the entire luxury fashion market.’