E-commerce in the luxury industry

The internet changes our everyday life and consequently our shopping behavior. Thus, the luxury sector is also adapting to this new world. The majority of our clients are getting information online these days and not on site. Mono-brand stores are already well represented in Zurich but soon they will also be available online via e-shops, directly distributed by the manufacturer.

The Inhorgenta Trend Index 2017 survey among 1,000 consumers in Switzerland has shown that only 29 percent of the respondents would be willing to buy luxury products with a price range between 500 to 1,000 Swiss francs online. From 500  francs and upwards, it was only 18 percent. To conclude: in Switzerland, research is currently carried out mainly online but the products are bought in local stores. This is very different from other industries since a study revealed that every Swiss shopped online for CHF 1,660 in the year 2017.

Swatch or Tissot offer their customers their products online directly from the manufacturer. Currently, Omega is only available on the digital US market. In a few years, a majority of our brands will have their own online shop, no matter the price range. However, it will still be necessary to try it on physically before purchasing the watch; also, good advice is still necessary.

Online platforms such as Chrono24 and Chronext have grown rapidly. These unofficial watch dealers sell used as well as unworn time pieces. The gray-market is booming; in 2017, the sale of brand-new Swiss quality watches already reached a high six-digit number. The main reason to buy there is the price. Unfortunately, they are supported by official concessionaires who also earn a small amount of the price and thus negatively influence the image of the brand. Chronext does not publish seller information and is therefore predestined to cooperate with these concessionaires.