According to Coresight Research, overall luxury e-commerce has actually grown, and slightly faster than the overall luxury market, which has slowed in 2023. Shoppers continue to buy fashion online, including luxury items. But not from online multi-brand stores. Savvy shoppers prefer to buy directly from brands.
And 2023-2024 are tough times for multi-brand e-commerce:
— In 2023, Farfetch almost faced bankruptcy, but was quickly sold to South Korean giant Coupang.
— In 2023, Matchesfashion was sold to Frasers Group, which closed it a few months later.
— Yoox-Net-a-Porter remains up for sale by its owner Richemont.
— Ssense — Sales fell 17 percent year-on-year from January to May 2023, multi-brand platform cut its workforce due to slowing growth (Earnest Analytics).
— Moda Operandi said in a BoF statement that it saw no growth in 2023 compared to last year, as it faced a drop in demand.
The exception is Mytheresa, one of the few multi-brand luxury e-commerce retailers, including Moda Operandi and Ssense, that is forging ahead despite the upheaval rocking their sector.
Consumers are building emotional connections with brands above all else, and are increasingly turning directly to brands’ social media for inspiration and research. Multi-brand e-tailers are having to adapt their marketing to the next generation of shoppers.
How are they staying afloat?
The companies that have proven more resilient in luxury e-commerce are not trying to be “all things to all people.” Instead, they specialize and focus on serving a specific audience.
Moda Operandi — for those who love the latest news from the catwalk.
Moda Operandi’s virtual shows give customers the opportunity to see the debut collection first and pre-order it.
Moda Operandi itself believes that one of the factors contributing to its success is the emphasis on personal shopping and trusting relationships, as opposed to the digital advertising marketing that has flooded the market.
In addition, the company creates limited capsules. For example, in May 2024, Moda Operandi announced an exclusive capsule collection and a pop-up store with The Frankie Shop called «The Art of Dressing».
Mytheresa — uncompromisingly for the wealthiest.
Mytheresa releases exclusive capsules that match the lifestyle of its audience.
Going offline: Mytheresa’s communication with its main clients goes from the virtual to the real world. And often offline. Mytheresa hosts special closed events, such as a trip to the Italian Riviera with Dolce & Gabbana or a private viewing of a New York Ballet rehearsal. It’s an exclusive club culture. Such customers are few in number, but they account for about half of the business’s sales.
Ssense is luxury for Generation Z.
Ssense is a space for experimentation and niche designers. The Ssense buyer knows what a minimalist Japanese label like Auralee is. He is ready to pay for Rick Owens’ inflatable boots.
Ssense creates interesting editorials and fills its social networks with viral comments and memes, receiving numerous reposts. The content is not aimed at a wide audience. It is clearly aimed at “its own”. The same applies to buying: the focus is on choosing those designers and products that resonate with a fashionable young audience. Even a category like wedding fashion will have a special Ssense character.
Based on materials from Business of fashion: Luxury E-Commerce: Who’s Surviving and Why & What luxury e-commerce survivors get right