A practical look at the challenges luxury fashion brands face in the wake of digitalization: is it time that luxury fashion brands learn to love e-commerce platforms?

Abstract

... The face of retail is changing and has been for some time now. The bricks and mortar store has been largely replaced by digitalization and omni-channel retail which is fast-paced and reflects the buying habits and demands of a younger generation, Millennials and Generation Z. Fashion retail lends itself very easily to digitalization. The success of online fashion retail businesses such as Asos, Net-a-Porter and Farfetch supports this, and these online fashion businesses continue to grow, outrunning traditional retail models. Digitalization brings challenges for fashion brands, particularly but not exclusively, luxury fashion brands. Many luxury fashion brands have been hesitant to embrace the digital age. Whilst luxury brands may sell products via online fashion retail destinations such as Net-a-Porter, Stylebop and Farfetch, far fewer have taken the plunge into the world of e-commerce platforms such as Amazon and eBay. Luxury fashion brand Chanel has been famously resistant to the digitalization of its brand at all.