Luxury goods has entered a new phase, where conspicuous consumption is giving way to more meaningful luxury experiences. As consumers reassess their priorities, asking themselves what they truly value, a host of major trends have emerged: from the preference given to luxury experiences over “things”, to sustainable luxury. This report features key insights and the latest trends in luxury goods around the globe in 2016, including the growth of global wealth and its impact on the wider industry.
Luxury goods globally delivered another year of moderate growth in 2016, increasing by 3%, despite weakness in key markets such as China, Russia and Brazil.
The US continues to provide robust growth, benefiting from solid post-recession recovery. The slowdown in sales of luxury goods in China is expected to enable the US to remain the world leader though to 2018, highlighting its strategic importance within the global industry.
Luxury goods has entered a new phase, in which conspicuous consumption is giving way to more meaningful and authentic luxury experiences. As consumers reassess their priorities and increasingly ask themselves what they truly value, a host of major trends have emerged, including preference being given to luxury experiences over possessions.
“New luxury” has been defined as products and services that possess higher levels of quality, taste and aspiration than other goods in the category. The traditional product/service value proposition is no longer adequate for reaching consumers or creating significant differentiation.
Changing consumer attitudes towards “sustainable luxury” are opening up a range of growth opportunities. A host of technological, environmental and economic changes are driving demand for more conscious consumption of luxury goods.
Omnichannel strategies are becoming increasingly important, as luxury retailers need to adapt to a new generation of hyperconnected luxury shoppers. Retailers are also seeking ways to integrate existing technology creatively into their bricks-and-mortar stores, connecting them with their online businesses.
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