The Jakarta Post
Bags reportedly remained the most purchased luxury product in Asia, accounting for 62 percent of online transactions. (Shutterstock/-)
Amid difficult economic conditions, luxury goods sales in Indonesia have grown by 84 percent, becoming Asia's largest online luxury goods sales growth, according to the 2016 Asia Luxury Index.
The index is based on Singapore-based online platform for luxury products Reebonz's sales data and industry report for 2014-2015.
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Reebonz Indonesia executive manager Anggono Wijaya said that social media and digital marketing and collaborations with influencers and young designers were among the main reasons behind the increase of sales. “At first we focused in building the company itself, but since two years ago, we have been focusing on marketing our products,” he told The Jakarta Post.
Separately, the company's senior marketing manager Bernard Widjaja Ng said that the group of luxury consumers were evolving and expanding as luxury was no longer just for the select few. With growing affluence and accessibility, more consumers can readily purchase luxury goods.
Bernard added that consumers had also became younger with 21-year-olds starting to buy luxury goods. "There's a shift in an economical class of buyers, as people from the B-level economy have started to buy luxury goods."
Bags reportedly remained the most purchased luxury products in Asia, accounting for 62 percent of online transactions, with Balenciaga, Fendi and Longchamp topping the brand list in Indonesia. The report also notes a rise of 87 percent in shoe sales and 39 percent increase in timepiece sales between 2014 and 2015 in Asia.
The report also recorded a shift in Asia’s buying trends, with a 30 percent increase in pre-owned luxury goods sales. “The issues of cleanliness and quality will remain, but there is a growing appetite for pre-owned luxury goods particularly in accessories like handbags,” said World’s Global Style Network senior editor and retail intelligence Erica Ng. The biggest contributor to this increase are bags and shoes sales, with Chanel, Louis Vuitton, Hermès and Prada topping the brand list.
Starting as a luxury product retailer in Singapore, Reebonz has expanded via e-commerce platforms with offices in Indonesia, Australia, Hong Kong, Malaysia, South Korea, Thailand and Taiwan. It currently provides three services, namely Reebonz White Glove, Reebonz Closets and Reebonz Marketplace. (kes)