Table of Contents
Executive Summary
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- Market overview
- Top takeaways
- Consumers are willing to invest in the right items
- Shoppers want reassurance before investment
- Accessible luxury is a must
- Key trends
- Beyond a brand: consumers want the full experience
- Waste not, want not
- What it means, and what’s next
The Market – What You Need to Know
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- An evolving landscape creates new opportunities to engage consumers
- Economic concerns could challenge growth
Market Perspective
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- Evolving retail models bring luxury fashion to more consumers
Market Factors
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- Affluent versus average consumers
- Who are the affluent consumers?
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- Figure 1: High income households by type and age, 2019
- Mutual gender interest in fashion is optimistic for category
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- Figure 2: Median household income, by type of household, 2017
- Luxury industry could face headwinds with anticipated economic troubles
- Luxury isn’t immune to the recession
- Potential for price increases add to the plate
Key Players – What You Need to Know
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- Legacy brands’ efforts to evolve are resonating with consumers
- Nordstrom thrives, Barney’s dies
- Brand ethics are under the microscope
Brand Preferences
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- Gucci, Louis, Chanel – oh my!
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- Figure 3: Brand Preferences - NET, November 2019
- Political stance resonates with socially driven shoppers
- Evolving the shopping experience for modern consumers
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- Figure 4: LV TV YouTube Clip, September 2019
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- Figure 5: Gucci Instagram post, December 2019
- Beyond a brand
What’s Working
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- How Nordstrom remains relevant in an ever-changing retail landscape
- Delivering value without relying on discounts
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- Figure 6: Nordstrom Instagram post, May 2019
- Creating excitement and experiences
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- Figure 7: Nordstrom Instagram post, November 2019
What’s Struggling
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- Tone-deaf marketing impacts brand perception
- Barney’s: another one bites the dust
What to Watch
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- Socially conscious shoppers demand the same from brands
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- Figure 8: Rent The Runway Instagram post, December 2019
The Consumer – What You Need to Know
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- Consumers see value in investing in high-use luxury items
- Consumers stick to traditional retailers for quality assurance and credibility
- Flexible shopping options make luxury more accessible to all consumers
Items Purchased and Recipients
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- Analyst Perspective:
- Popularity of streetwear signals shoes and everyday clothing are worth the investment
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- Figure 9: Adidas Instagram post, November 2019
- Financial concerns and limitations restrict category spending
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- Figure 10: Items Purchased, November 2019
- Young, single men spend their money on quality
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- Figure 11: Items purchased, by gender and age, November 2019
- Handbags have universal appeal to women
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- Figure 12: Items purchased and item recipients, by gender and age, November 2019
- Multicultural consumers seek well rounded wardrobes
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- Figure 13: Items purchased by race and Hispanic origin, November 2019
Retailers Shopped
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- Analyst Perspective:
- Traditional retailers are most shopped
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- Figure 14: Retailers shopped – any clothing retailer (NET), in-store and online, November 2019
- Amazon is poised to steal luxury share, but faces authenticity issues
- Resale market captures three in 10 shoppers
- Why are they popular?
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- Figure 15: Retailers shopped – resellers, by gender and age, November 2019
- Multicultural luxury shoppers interested in alternative purchase options
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- Figure 16: Retailers shopped, by race and Hispanic origin, November 2019
Shopping Behavior
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- Analyst perspective:
- Multi-channel luxury shoppers want to be catered to on and offline
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- Figure 17: Shopping Behavior, November 2019
- Appearance is everything, besides price
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- Figure 18: TURF Analysis – Shopping behavior, November 2019
- Women aren’t likely to impulsively buy luxury items
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- Figure 19: Shopping behavior, by gender and age, November 2019
- Visual references guide Black shoppers’ purchases
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- Figure 20: Shopping behavior, by race, November 2019
Motivations to Buy
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- Analyst perspective:
- Discounts unlock new customers
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- Figure 21: Motivations to buy, November 2019
- Women want flexibility in return for investing in luxury
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- Figure 22: Motivations to buy, by select demographics – November 2019
- Sustainable collections spark interest in mission-minded young shoppers
Attitudes toward Luxury Fashion
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- Analyst perspective:
- Luxury fashion concerns: inauthentic and unrealistic
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- Figure 23: Attitudes toward luxury fashion – November 2019
- Combatting counterfeits
- Accessible aspiration
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- Figure 24: Janet Mandell showroom Instagram post, November 2019
- Young shoppers are looking to flaunt luxury purchases
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- Figure 25: Attitudes toward luxury fashion, by generation and age – November 2019
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- Figure 26: Gucci Instagram post, November 2019
- Figure 27: Gucci Instagram post, October 2019
- Figure 28: Chanel Instagram post, October 2019
- Figure 29: Louis Vuitton Instagram post, October 2019
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- Figure 30: Off-White and Nike Instagram post, December 2019
- Cart consideration is popular among savvy women
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- Figure 31: Attitudes toward luxury fashion, by select gender demographics – November 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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