US online luxury fashion spend continues to show “significant growth” thanks to youth power – NPD re
US online sales of luxury fashion continues to show “significant growth” across all the three key segments — footwear, accessories, and apparel — according to the The NPD Group. All hail the “younger, multi-ethnic demographic” for the growth, it noted.
Its new ‘US Luxury E-commerce Report’ claims as much of the nearly 50% increase in dollar sales seen in recent years across these segments is attributed to an increase in buyer spending.
“The luxury market is evolving, new brands are getting attention, and online retailer platforms are elevating the competitive landscape,” said NPD Group chief advisor Marshal Cohen.
“The younger, multi-ethnic demographic that is more attracted to purchasing designer products online — even more than the average online accessories, footwear, or apparel buyer — is a major contributor to this evolution,” he added.
The biggest spending increase within the online luxury market came from apparel — growing 17% to an average of $716 spent per buyer. While the frequency of online purchases held steady for luxury apparel and fashion accessories both segments saw increases in the amount consumers spent on those purchases.
Fashion accessories increased their average online luxury spend per buyer by 5%, to $782.
Nearly half of the online luxury fashion dollar sales come from footwear, which has the highest average annual spend per buyer and annual purchase frequency. The average online luxury footwear spend increased 4% to $794, and purchase frequency also increased slightly to 1.6 times per year.
“It’s not just about the statement bag anymore, now, thanks to expanded accessibility, the statement shoe is also an area of focus and investment for consumers,” said Cohen. “If we pay attention to what consumers are saying, these new market dynamics spell a great deal of opportunity across the entire luxury fashion market.”