Luxury brands are increasingly adopting unique commercial models, and this week’s edition of BLSTK Replay focuses on this trend. The global health crisis has led to a new consumption model, with commerce shifting towards a fully digitized experience and a surge in interest in luxury marketplaces. This consumption method, popular in China, has now spread to the West, giving rise to promising platforms that compete with established wholesalers.
The marketplace model has become established and is seen as a great opportunity for major luxury groups and investors. The trend of marketplaces, which combine wholesale and e-concession sales, is gaining momentum. The pandemic has prompted brands to reassess their dependence on multi-brand retailers, leading to a reevaluation of how they sell their products and the need for retailers to adapt their strategies. The focus is on maximizing value and touchpoints for customers.
Farfetch, a major player in the luxury industry, has experienced significant growth. While no dominant player currently exists in global online luxury sales, the rise of e-commerce has been accelerated by the pandemic and is expected to have a major impact on the industry. Farfetch has quickly transformed from a disruptor to a leader in the online luxury product market, as evidenced by its impressive stock performance.
In recent months, a strategic partnership has emerged between Farfetch, Alibaba, and Richemont. This partnership will enable Farfetch to integrate with Alibaba’s luxury platforms, such as Tmall Luxury Pavilion, Luxury Soho, and Tmall Global. The vision of this alliance, known as “Luxury New Retail,” is to accelerate the digitalization of the luxury industry and promote technologies that integrate online commerce into the multichannel sales strategies of luxury players.
In addition to these developments, this week’s BLSTK Replay also highlights the latest collection from Salvatore Ferragamo, the exquisite gardens of Gucci, and the unique luxury of Brazil. To explore the full edition of BLSTK Replay for the week, click here.
