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, “with 158 percent year-on-year growth overall across all” markets.
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 like buy-now-pay-later models, also encouraged consumers to make luxury purchases online.
With the maturing e-commerce landscape and rising middle class leading to an increase in more sophisticated consumers in Southeast Asia, Zalora sees opportunities in the luxury segment in the region, with plans to expand its luxury and premium international brand offering.