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After Another Big Year, Online Luxury Sales Approach a Milestone

Websites and apps are on track to become the most important channel for personal luxury goods.

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After Another Big Year, Online Luxury Sales Approach a Milestone
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Demand for personal luxury goods rebounded in style in 2021—and online sales were a crucial factor in that recovery, rising 27% year over year while holding on to the huge gains in market share recorded in 2020 during the early stages of the Covid-19 pandemic.

Monobrand websites—dedicated to a single brand—now account for about 40% of online sales, reflecting heavy investment by luxury groups. Leather goods, sneakers, and skin care products remain the most popular luxury goods categories online. The appeal of online luxury shopping is also cutting across generational boundaries.

We forecast that online will become the single biggest channel for personal luxury goods in the coming years, making up 28%–30% of the global market in 2025—ahead of our expectations for monobrand physical retail stores (26%–28%), outlet stores (13%–15%), specialty stores (10%–12%), department stores (10%–12%), and travel retail (5%–7%).

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