Retail Tourism Unlikely To Return In 2021; Cross-Border E-commerce Filling The Void
With European and UK physical retail largely closed for business, luxury brands are reporting some of the steepest revenue declines on record in the region. Just last week, LVMH reported a 24% revenue decline in Europe, while Capri Holdings (Michael Kors, Versace, and Jimmy Choo) experienced a 29% decrease. US luxury brand Ralph Lauren is feeling the pinch from a lack of tourism domestically as well as in Europe, where comparable store sales declined 38% during the holiday quarter. A new study from eShopWorld (ESW), a leading cross-border e-commerce provider, found that nearly 70% of global consumers made cross-border e-commerce purchases in 2020 as digital spend replaced physical. Stuck at home, shoppers have been turning to websites outside their own country to find better prices and goods that aren’t readily available in their home markets. This trend has put pressure on brands to create a localized, frictionless shopping experience in each international market where they sell. Read more at Forbes.
