Why are luxury firms set in the 'marketplaces' such as Farftech or Net-A-Porter to aupar their sales

Luxury seeks new strategies to boost sales.The companies in the sector did not see one of their strongest legs on the Internet.But now the alliance with Marketplaces could help minimize the economic impact of pandemic.The firms have their own online sales platforms, but they find an interesting way to increase their sales on the online platforms specialized in the sector, such as Farfetch or Net-A-Porter.

Example of this bet is the recent agreement signed between the owner of Cartier, Mont Blanc or Chloé, Richemont;With the Luxury Marketplace Farfetch and the Chinese giant of the Ecommece, Alibaba.With this movement their drivers say they want to digitize the luxury industry, in addition to, as expected, attack a thriving Chinese market.

Luxury sector companies are taking advantage of online to compensate for the fall in sales due to the restrictions of the Coronavirus, points the president of Fashion Spain, Ángel Asensio, in an interview with Business Insider.Agreements like this try to give a digital impous to luxury."The interaction through these marketplaces generates an important part of the purchase intention," says KPMG retail expert, Enrique Porta, in an interview with Business Insider Spain.

XII Smart Business Meeting: Present and future of the luxury sector

Luxury online sales platforms such as Net-A-Porter or Farfetch gain positions as a luxury purchase, because customers feel they already know how it works and that they can respond to their needs in very few clicks, justify holder. This interrelation derivesin which platforms want to have a broader brand offer, so they become open, more participatory and collaborative ecosystems.

"These platforms seek dimension and these alliances allow you to expand their size and make them enter a positive value generation spiral," Porta explains.Lies to firms offers their international penetration: "Through the same platform, the firms access many more markets without having to go individually opening online store in each of them."

Alliances such as these new variables that luxury firms must take into account: the Network effect and the collection of customers with complementary services, argues the professor of the Marketing Department of ESADE, Alexis Mavrommatis, in an interview with Business Insider Spain.

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Luxury sales take air in summer before the thriving demand in the American and Asian markets

What the expert refers to is, on the one hand, to connect with the consumer to grow the client network.“For that you need alliances.Internet allows you scalability and globalization, ”says Esade's expert."You need the network effect for people to speak of you and capture fast customers."

The other party is the supply of complementary services that come hand in hand with agreements.For example, the delivery of orders immediately is an upward demand, however, a luxury order cannot be delivered in one of the Glovo or Deliveroo Riders boxes.

As a case of success, Mavrommatis refers to the recent Amazon launch of a personalized purchase service virtually.Baptized as Amazon Experience, it is that your staff Shopper goes to the store of a specific commercial street and buy for you."That are complementary services," says the expert.

The luxury sector suffers from the crisis of the coronavirus and takes air in the Chinese market

This is precisely what platforms such as Farfetch or Net-A-Porter do: although they were born as an unknown signs umbrella were increasing in size to include luxury and offer complementary services.

Luxury could see on these platforms a way of liquidating stock, says Mavrommatis, while using its own online store to sell exclusivity."Online sale can cause people who know the product to buy it online," says Asensio that says that except for scarves or bags, physical presence is very important for the acquisition of other fashion items.

At this point it becomes essential that the brands give new formulas to connect with the client, says Mavrommatis.For example, Louis Vuitton offers what he calls a conmerce conversation, a virtual exclusive contact with a personal shopper that well through the telephone or internet advisor to the client."Physical experience as such is not, but it is part of it in personal treatment," resolves mavromatis.

To try to answer the multiple questions of the luxury sector, Business Insider Spain celebrates on November 25 its XII Smart Business Meeting with the sponsorship of Havas Media Group and the Upday news aggregator.

Under the present and future title of the luxury sector, the meeting will be moderated by the CEO of Axel Springer Spain, Manuel del Campo, and four outstanding experts in the industry will participate:

You can follow the Streaming event by registering in this link.