E-Commerce Platforms Are Expanding Into The Luxury Space. Is It Working?

Once known for their low-priced, mass-market goods, the region’s largest e-commerce platforms are expanding into the luxury space. Here’s how well that’s working.

- Lynette Koh

In June, watch enthusiast Jimmy Law was casually looking up a Rado watch created in collaboration with the Japanese design duo, YOY. While reading about the model at the Swiss watch brand’s homepage, it surprised him to see that there was an option to complete the purchase on the e-commerce platform Lazada.

Law, whose collection includes brands such as Omega and Cartier, says, “It was unexpected because I usually associate Lazada with consumer products and more mainstream offerings, rather than luxury goods.”

It’s a perception these platforms are looking to change. While they remain best known for offering a staggering range of affordably priced goods, e-commerce platforms such as Lazada, Shopee and Zalora have been investing heavily in their luxury categories – and many shoppers, here and in other parts of South-east Asia, have been responding to their enticing overtures.

THE POPULARITY OF PREMIUM

Having entered the luxury segment in 2018, Zalora, owned by Global Fashion Group, launched a full-scale luxury segment last September across its Asian markets. It includes accessories by higher-end brands, including Gucci and Balenciaga, along with mid-tier labels like Coach and Tory Burch. “Since its launch in Singapore, there has been an increase of over 70 per cent in the number of luxury customers year on year,” says Zalora’s buying director Eric Cheang.