The move by LVMH, which owns the various luxury beauty brands including Christian Dior, Guerlain, and Benefit Cosmetics, suggests the multinational is getting set to move forward with a more sophisticated online presence, with recent market reports confirming that digital offers massive potential for luxury.
Rogers proved his digital merit with Apple as a senior director on the iTunes team, and played an instrumental role in the launch of the Apple Music streaming service.
LVMH’s move is a timely one: according to Research and Markets’ most recent report on the luxury goods sector, the the ongoing boom in online personal luxury goods retail is one of the main drivers propelling the sector’s growth.
“Browsing a store website is the second-most preferred method of shopping, with 32% of wealthy women reporting this is how they discover new products, while 23% say they do the same at manufacturer's websites,” Luxury Institute, a New York-based global luxury research provider, has observed.
Research and Markets’ recent report suggests the emergence of an off-price pricing strategy in the global online luxury goods market is to thank for the rise in online sales.
This retail strategy makes luxury beauty goods accessible to a greater number of individuals, since they can compare the prices of different products with greater ease. This increases consumer confidence in the idea that they’re getting the best deal possible.
Men in particular, according to Research and Markets analysts, are increasing their contribution to luxury’s growth online, with Mintel research also showing that 3 out of every 4 young American men prefer to buy personal care products online.
Other growth factors
It’s not just online sales boosting the sector though; Research and Markets’ report picks out various key trends accounting for the upcoming rise in luxury.
The developing global economy, the rising level of disposable income and wealth, the growing consumption of luxury goods by a rising middle class population, and continuous global urbanization are all major factors fueling the global luxury goods market are all to thank.