Luxury goods continue to be a hot commodity
Although the wavering economy has some consumers pinching pennies and shopping less frequently, the luxury goods market is still extremely lucrative. According to a new report from business consulting firm Bain & Company, the demand for luxury goods has remained consistent over the past few years and overall revenues in this category have grown by double-digits, highlighting potential opportunities for savvy web merchants.
Citing the report, eMarketer notes that the luxury goods market in China has seen sales jump 18 percent over the past year. On top of that, the market for luxury products is also diversifying – men accounted for an estimated 41 percent of purchases in 2012. Online sales in the high-value sector as a whole remained strong last year, a trend that was driven by increased competition throughout the market.
The industry is expected to maintain a 25 percent growth rate in terms of revenues for the foreseeable future.
Bain & Company forecast that eCommerce luxury goods merchants alone earned more than $9 billion in 2012, suggesting that high-value products are not only in-demand from customers but also a lucrative market for online retailers.
Operating successful eCommerce operations continues to rely heavily on inventory management and reacting to customer trends. In a way, adding luxury items is no different than the usual merchandising processes – you want to pick and choose the right products for the right consumer at the right time. It's a matter of responding well to consumer demands and interests. If it makes sense based on your brand and target audience, luxury goods could help your improve your bottom line substantially.