London Sep. 10 (People's Daily Online)—— Digital investment is paying off in style for the British luxury industry as brands experience a surge in sales as a direct result of building sophisticated, imaginative ecommerce offerings.

In a new report by global trend forecaster WGSN, 57% of senior executives from luxury brands reveal a significant increase in sales as a result of investment in digital capabilities. Momentum is set to accelerate further - nine out of ten expect digital sales to increase over the next five years, with 69% anticipating that online revenue will increase "greatly".

Alongside sales impact, brand and reputation is cited by 80% of respondents as a benefit of technological diversification, while 53% have seen an improvement in customer loyalty. The findings add weight to the research released by McKinsey in July 2015 suggesting that luxury ecommerce is having a significant economic impact. This research forecasted that the platform would reach $21 billion globally by 2020, driving 40% of sales growth for luxury brands.

The WSGN report also highlights that talent was cited as a big investment area for nine out of ten respondents. Luxury companies are seeking to build their in-house capabilities, hiring staff from technology giants, as seen with the recent LVMH appointment of Ian Rogers, a senior executive from Apple, as its chief digital officer.

Carla Buzasi, global chief content officer, WGSN, said: “The digital revolution has changed retail beyond all recognition, offering new opportunities for brands and businesses. In the luxury sector, after a somewhat slow start, there are many brands now succeeding in creating a compelling luxury experience online to complement the shopping experience in store, and in some cases replace it all together. The most forward-thinking luxury brands have learnt to use graphics, video and social media to bring out the very best of their products. Nevertheless, the traditional store hasn’t lost its space in the retail ecosystem. Boutiques and flagship stores alike have to be inventive and experimental to lure shoppers in, while canny consumers are complementing both experiences by researching online, using click and collect, or switching from in-store to online shopping depending on their needs at the time."

Cadogan Estate, the London property empire that owns prime retail space in Kensington and Chelsea, believes that digital forces are transforming the attitudes of affluent shoppers, with consumers expecting a seamless online and off-line experience. 

Hugh Seaborn, chief executive of Cadogan, said: "In the past few years, digital forces have swept through the retail industry, transforming consumer’s behaviour and their approach to shopping. However, especially with the rise of social media, the most satisfying purchase remains one that comes with wonderful memories. Within an environment of great connectivity, vitality, world-class culture and heritage, shopping will never cease to be a desirable experience."

Asked how their customers were using digital services, 81% of luxury goods executives say shoppers are researching online prior to purchasing goods in stores. Additionally, 78% report that consumers are buying on the internet. The same proportion, 78%, believes shoppers are using websites or social media to find out about new product ranges. And 63% say customers are most likely to use digital to find out about upcoming launches. Video has emerged as a crucial tool in creating a luxury experience online. Tools such as Snapchat and Periscope have brought catwalk shows to a broader audience. Of the senior executives surveyed, 48% said they offered video content on their sites.