If we talk about the past, buying luxury products had more aspirational value along with those exorbitant prices. But today’s scenario is totally upside down. In the age of competition, luxury is better delineated by the exclusivity of distribution at an affordable price. Today customers look for unique design that suits her eccentric aura and liking.
Looking at today’s eCommerce horizon and increasing digital connectivity across the country, many online marketplaces are eyeing big to make luxury a mainstream eCommerce vertical. As per ASSOCHAM, online luxury market in India is expected to grow to $25 billion by the end of 2016. The segment has seen a whopping 25% annual growth over the past couple of years.
eCommerce over the last one decade has seen discerning response and consumers today are very comfortable in buying heavy ticket items online. Capitalising on the trend, many eCommerce majors in the country have forayed into luxury segment and have experience a sizzling response in terms of traffic and sales.
Recently mobile payment turned online marketplace Paytm has decided to enter into the luxury segment by launching an online platform exclusively for luxury products. The Noida-based has inked partnership deal with various international luxury brands such as Burberry, Fendi, Furla and Gucci.
The Alibaba-backed company has named its mobile platform for these luxury products as ‘Anasa’. The firm claims it to be one of its kind mall on mobile which can provide "the right environment and market positioning to showcase luxury brands" to high net worth individuals or HNIs. The company is also in early talks with many Indian retailers for its mobile platform.
“We envision luxury market is set to register explosive growth in India over the next two decades, we see aggressive adoption of eCommerce and new brands getting launched via online channel,” said Vijay KG, Founder, Luxepolis. Luxepolis is an online platform for shopping and re-selling luxury products ranging from fashion accessories, watches and jewellery to luxury automobiles.
High-end technology infusion in eCommerce and increasing digital connectivity PAN India has changed not just the perception of traditional luxury brands but also their business models. Many offline luxury retailers have partnered with online marketplaces to gain consumerism. Websites such as Paytm, Luxepolis, Snapdeal, Amazon and many others have made even the most exclusive luxury brands available for everyone with few clicks.
As per a report by Euromonitor International, luxury goods market in India is expected to more than double in five years to $53 billion by 2020 from $25 billion in 2015. Despite this significant hike, online luxury market is still at an embryonic stage with roadblocks like authenticity, large value online transactions and awareness in tier II & III cities. Creating a business as unique as the segment itself and keeping the mystique intact will surely be a play worth watch!