MANILA, Philippines — Online fashion destination Zalora expects continued growth in demand for luxury items on e-commerce in Southeast Asia despite the pandemic on the back of a rising middle class and changing preference of consumers.
Zalora said the luxury segment is the platform’s fastest growing category since it was introduced last year.
“We’ve seen tremendous growth since we launched our luxury category, with 158 percent year-on-year growth overall across all our markets,” Zalora said.
Driving the growth was the shift in consumer preference to purchase items online as the pandemic forced people to stay indoors.
The emergence of alternative payment methods such as buy-now-pay-later models, also encouraged consumers to make luxury purchases online.
With the maturing e-commerce landscape and rising middle class seen to lead to an increase in more sophisticated consumers in Southeast Asia, Zalora sees opportunities in the luxury segment in the region.
“As shoppers continue to prioritize quality over quantity, and look for ways to invest in more high-value items that provide superior quality as well as the best after-sale satisfaction, we expect that interest in luxury products will continue to grow in the long term,” Zalora buying director Eric Cheang said.
In addition, Cheang said Zalora would expand its luxury and premium international brand offering.
Zalora is holding its inaugural luxury festival which will run until June 20.
During the luxury festival, shoppers can avail of deals, as well as get access to items from various brands including Ferragamo, Prada, Saint Laurent and Balenciaga.
Founded in 2012, Zalora which offers luxury, fashion, beauty and lifestyle products, is present in the Philippines, Singapore, Indonesia, Malaysia, Brunei, Hong Kong and Taiwan.