Online luxury shopping expanded its reach in Asia, with strong growth of at least 50 per cent seen in Australia, Hong Kong, Indonesia, Malaysia and Singapore in 2015. This is based on the latest sales data from Reebonz, the online platform for buying and selling a wide range of luxury products in Southeast Asia, which is headquartered in Singapore.
The emergence of new product sectors fuelled the world of online luxury shopping, with demand for shoes and timepieces growing amongst luxury consumers.
Across all markets, total sales on Reebonz rose by 87 per cent for shoes and 39 per cent for timepieces from 2014 to 2015. In terms of fastest growth, shoes performed best in Indonesia, Malaysia and Singapore, while small leather goods and timepieces turned out strong showings amongst shoppers in Indonesia and Hong Kong.
These findings were part of the Asia Luxury Index 2016 launched by Reebonz on August 25 in Jakarta, as a benchmarking report that tracked the performance of the online luxury ecosystem. The event was also attended by some fashion lovers and influencers, such as Olivia Lazuardy and Diana Rikasari.
More avenues to whet consumers' appetite
Digital technology has had a huge hand in reshaping the way luxury consumers shop, and the trend of online shopping shows little signs of slowing, especially with growing mobile penetration rates in Asia. For example, since the launch of the Reebonz app for iPhones and iPads in 2010 and the Android OS in 2012, the number of users has grown steadily to more than six figures in the space of six years.
"It's clear that mobile is the future of commerce, and we wanted to make buying and selling luxury items on your phone as easy as booking an Uber or ordering from Food Panda," said Samuel Lim, Reebonz CEO.
To match consumer demand for luxury, Reebonz has since evolved into an online ecosystem with platforms such as Reebonz Closets, White Glove, and Reebonz Marketplace, which allow consumers the option of buying and selling new and pre-owned luxury items with ease.
Pre-owned: the new parameter in luxury
The latest data from Reebonz also revealed a 30 per cent growth in the pre-owned category, with bags and shoes drawing the biggest gains in terms of transactions.
According to Erica Ng, Senior Editor, Retail Intelligence, with trend forecaster WGSN, a gradual shift in consumers' perceptions towards pre-owned goods is being driven by a sense of nostalgia. "The issues of cleanliness and quality will remain, but there is a growing appetite for pre-owned luxury goods particularly in accessories like handbags."
Chanel, Louis Vuitton, Hermès and Prada dominate the pre-owned luxury, appearing most often within the top three brands across all product sectors. Underlining the popularity of these luxury players in both the new and pre-owned space, demand for a pre-owned bag from one of these brands ranged between four times (Hermès) and six times (Louis Vuitton) compared with a brand-new piece.
Lim said: "We will continue to see a strong appetite for luxury—both new and pre-owned—among consumers in Asia. And Reebonz has evolved its platform to approach luxury as a service, with our added offerings in servicing this growing segment of customers who are looking to not only pull value from their luxury purchases, but also to acquire new items."
Photo credit: Pexels, Reebonz Indonesia