Delivering the goods
While many luxury brands were slow to take on ecommerce in the beginning, the sector is now leading the charge in luxury sales growth at 7 percent penetration in 2016, according to Bain & Company.
Startup culture, digital, peer-to-peer marketplaces and off-price retailers have paved the way for consumers to find a discount or cheaper version for almost any item or service for purchase. Through mobile and desktop, customers can do minimal research to find a bevy of options for products at their fingertips, especially for luxury, meaning these brands need to steer into the skid and adopt their own discounted market strategies to win out.
“The luxury market has reached a maturation point. Brands can no longer rely on low-hanging fruit. Instead, they really need to implement differentiating strategies to succeed going forward,” said Claudia D?Arpizio, partner in Milan and lead author of the study at Bain. “We are already starting to see clear polarization when it comes to performance with winners and losers emerging across product categories and segments.” Discount goods? threat

Luxury marketers that do not adopt to the rapidly changing environment of retail can find themselves missing out on opportunities for growth and consumer connection. As it becomes easier for consumers to find discounts and cheaper products, they now value good prices to make sure they are getting a good deal for a good product.
Example of Kenzo partnerin...