The global luxury market has been seeing unprecedented levels of growth in recent years. At this rate, experts have slated the total worldwide market—with the help of a robust online luxury retail industry—to reach at least £91bn by 2025.
While luxury retail stores have set a solid significance of their own in the entire luxury retail industry, online luxury retail is expected to take centre stage in the next few years. Online luxury retail now takes up nearly one-fifth of all personal luxury sales. The statistics have become positive to the point that 40% of current luxury purchases are mainly influenced by online experiences.
Is there a catch to all this?
Unfortunately, like all highly-innovative and potentially industry-changing developments, the online luxury retail sector is no stranger to pitfalls that must be dealt with accordingly. One of the main issues that online luxury retail stores must overcome is finding new ways to engage with affluent customers on the web.
Maintaining a balance between boosted online sales rates and sustainable offline retail store performances is a modern luxury retail conundrum that key players attempt to solve. As opposed to their offline counterparts, online luxury retail stores have fewer opportunities to upsell and boost their income. That can spell trouble and a great imbalance if stores aren’t careful.
How can the all-too-common modern luxury retail conundrum be solved?
There are a handful of different ways to overcome the challenges posed by a modern luxury retail conundrum, and each comes with its own pros and cons. Here is a four-part solution that has been proven to work best:
- Assess the total contribution that a digital or online store has on the total sales performance of the entire luxury retail store (both offline and online) and consumer purchase behaviours
- Define and put together a long-term strategy that uses digital media not only to increase online sales but improve your online and offline stores’ branding and sales components as well
- Devise more ways to increase digital sales by a significant margin, especially when it comes to running self-owned platforms and outsourcing to third-party resellers or retailers
- Outsource an accountant’s services to keep all your financial tracking and report-generation efforts in check
Why the last step is important
Outsourced accountants essentially do anything and everything to keep an eye out for your business’s finances. They also generate crucial reports and statements that you can use to make better business decisions in the future. Without the services of a competent accountant, you won’t be able to establish a bridge between your online and offline luxury retail sales well enough to ensure that all the operations and data run smoothly.
Investing in the ever-expansive digital economy is a great way to keep your luxury retail business on the right path towards achieving its long-term goals. If you want to improve the way that you run your online and offline luxury retail business, refer to this guide to help you in laying out a sound strategy to maximise market opportunities.
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