Luxury market seeks way to grow online sales

With the economic downturn in the United States in 2008, luxury brands have faced problems, mainly, with the stock of its stores. It was then that the Portuguese Manager Jose Neves had the idea of creating a luxury e-commerce to sell these products still. The business started in London, England, and soon spread to other European countries. In 2010, he landed in Brazil for believing this to be one of the main markets of the world, open to international brands. In addition, after eight years of operation, the brazilian fashion of luxury to exports through the Farfetch.
The site becomes a competition for the Commerce of own brands, explains Daniel Hoppers, Director-General of Farfetch Brazil. "We believe they are buying different moments. When he enters the site of a shop, he is interested in a specific product. Already at Farfetch, he wants a product and if offers to see what all the brands have to offer, "he says.
According to a survey by The Boston Consulting Group (BCG), the desire for 40% of consumers of luxury is concentrated on his shoes; 33% in fragrance and cosmetics; 21% on watches and jewellery; 15% on exchanges; and 10% on clothes.
In terms of consumption in 2016, 39% of respondents researched and purchased offline; 42% have researched online and purchased offline; 9% researched in offline and bought online; and 10% have researched and purchased online.
Second Funnels, the expectation is that sales go up to 25% online exclusively. Still, that number is still too small in relation to the physical store. That''s why the project Store of Future (Future Shop), led by Farfetch, has proposed be omnichannel, integrating online and offline sales.
"Our goal is to develop solutions to participate in this market of 75% of physical stores. We research hundreds of startups and we recreated our retail vision in the future, bringing multi-brand solutions that are simple and human, except for repetitive tasks and the turning into information, "explains hoppers.
The Brazil faces some restrictions for the luxury market. One of the solutions identified by the brazilian operation, which is only valid here, is to purchase splitted. "We realized that even our best and biggest customers with high purchasing power, they like to spread the purchase. Maybe that''s the Brazilian cultural and, so, we saw that it was essential for the growth of our online trade, "he says.
According to BCG, Brazilians are buying more internally. For example, in 2014, 76% of Brazilians bought luxury articles outside of Brazil. In 2016, the purchases abroad fell to 55%. São Paulo is one of the few cities in the world that participate in the Store to Door in 90 Minutes, Farfetch partnership with Gucci to deliver products within 1 hour and a half. "The project is accomplished in just ten capitals of the world and use the stock available in the physical store of the city", he explains.
In Brazil, the magazines are the biggest partners of luxury brands in advertising. However, according to Thaya Marcondes, Director of LBN, advertisers also have Communication entered the Brazilian market by segments such as events and experiences with consumers. "The brands are investing less than invested before, so they''re looking for other ways to communicate that are efficient. We promote exclusive photographic essays, editorials, special events to a restricted audience, in addition to the social networks that help to connect with the younger audience ".