What: Luxury e-commerce companies like Mytheresa, Ssense, and Moda Operandi are staying afloat by focusing on specific consumer bases, curating their product assortments, and maintaining retail fundamentals, despite the challenging market conditions.

Why it is important: The success strategies of these luxury e-tailers highlight the importance of targeting a defined audience, prioritizing profitability over aggressive growth, and emphasizing customer experience.

In a challenging luxury e-commerce market, Mytheresa, Ssense, and Moda Operandi are surviving by honing in on specific consumer segments, curating their product offerings, and excelling in retail fundamentals. These companies avoid competing on price, instead focusing on exclusivity, superior service, and targeted marketing. Mytheresa continues to see sales growth by engaging high-end clients with exclusive events and products. Ssense caters to Gen-Z with emerging designers and creative content, while Moda Operandi attracts runway enthusiasts with virtual trunk shows. Despite their successes, these strategies could limit scalability and raise questions about the market's capacity to sustain multiple players. The luxury sector faces slower growth and higher customer-acquisition costs, challenging e-tailers to maintain their value propositions. As the market evolves, the focus on unit economics and operational efficiency will be crucial for long-term resilience.

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