May 07, 2015
The Oxford dictionary defines "vogue" as "the prevailing fashion or style at a particular time." It is little wonder, then, that the eponymous magazine's parent, Conde Nast, is entering the burgeoning realm of eCommerce. Vogue.com has witnessed a 160% rise in visitors from 2014-2015, with the site receiving over 6 million monthly unique visitors in March. With existing brand equity, Vogue.com aims to become a lifestyle destination for eCommerce. Currently comprising 3% of total luxury fashion sales, online sales are projected to reach 17%, or roughly $12 billion of the global market. In the UK, where Vogue.com will debut its marketplace model of a clickable magazine, luxury sales are projected to grow 18% over the next three years. Digital already influences about 45% of luxury sales, and eCommerce in this area is growing twice as fast as the overall market. At current growth rates, sales could reach 20 billion euro. While luxury retailers have themselves been slow to adopt eommerce, users are integrating it into the shopping experience. In the UK, 54% of luxury goods consumers identified Selfridges.com, a multi-brand, omni-channel retailor as their favourite store. Net-a-Porter came in at 42% while Farfetch, was highly rated by 36% of respondents. With 56% of British luxury consumers spending an average of $3000 per user, multi-brand retail is an important channel. Conde Nast, with an early interest in eCommerce evidenced by its backing of start ups in fashion e-tailing, is ready to diversify its offerings.
Synonymous with luxury and fashion, Vogue will be competing with the likes of the newly merged Yoox and Net-a-Porter, both of which have been instrumental in the digitization of luxury fashion.
The difference, then, lies in customer service. Consumers have come to expect a seamless browsing experience, it is what happens at checkout that separates luxury from premium. 75% of consumers say a convenient return policy is important to their choice of purchase, with 73% influenced by free shipping and 40% attracted to products not available in-store. Since eCommerce disallows the physical handling of items prior to purchase, the new luxury is the ability to obtain those goods whenever and wherever a customer chooses. Logistics then, are the new luxury - the cream in your coffee, the cherry on your cake. Who'd have thought?
It's why we have tailored options for retailers, helping them ship anywhere hassle free. The consumer has a plethora of options - be it our PUDO service, home/office delivery, click and collect. At wnDirect, we've always seen order fulfilment as the sole to your stiletto: necessary, supportive and sometimes, giving just the right touch to differentiate.