The pandemic, cost-of-living crisis and inflation hikes continue to have an unprecedented impact on affluent populations, their wealth, and their spending habits on luxury goods. The top wealth segments stand out more now than ever before and remain the key consumers and drivers of luxury goods. This report provides a top-line overview of market performance and prospects across luxury goods and outlines key trends within the global luxury goods business landscape.
This report comes in PPT.
Luxury brands are rethinking production models and routes to market. Supply chain disruptions caused by the COVID-19 crisis, as well as ensuing excess inventories and shortages, have led fashion players to rethink their supply chains and manufacturing locations. Inflationary pressure on raw materials, increasing shipping costs and lack of warehousing have been driving costs up. This has increasingly led market players to consider a shorter supply chain through reshoring and nearshoring to gain control and agility.
Greater attention is being paid to evolving consumer values and attitudes, as these will dictate demand for purpose-driven, environmentally-friendly, health-focused products and services in the luxury space. While pre-pandemic the focus was concentrated more on environmental problems, the social momentum is now accelerating fast with key players and consumers alike defining sustainability as supporting local communities.
Inflationary pressures are eating into consumers’ discretionary and luxury spending, yet the desire for experiences remains unabated. Luxury brands are adopting a “less is more” approach, removing filters, highlighting quality and craftmanship, storytelling and ensuring that brand experiences are inclusive, opening up new opportunities to forge long-lasting connections.
Digital operations are being improved to meet consumers in the digital and physical space. As home isolation has accelerated the already increasing use of digital devices among consumers across markets and generations, brands are shifting to digital marketing and e-commerce, implementing digital components to the in-store shopping experience, and beginning to meet emerging consumers in the “metaverse” and all other digital platforms where they spend much of their time.
The rising importance of taking a holistic approach to health is fuelling demand for wellness propositions from every angle. Many luxury companies are already benefiting from the more health-centred consumer as the luxury of being in possession of good health becomes a focal point across every consumer group in the post-pandemic world. All aspects of health, wellness, sustainability, and DE&I are now focus points in this area
This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.See All of Our Definitions
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