Report Summary
The UK Designer Fashion report identifies consumer attitudes towards designer fashion, consumer behaviours, and fashion items in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Designer Fashion market in the UK.
Current Market Landscape
74% of shoppers bought designer fashion online in the past three years – a contrasting picture to pre-pandemic levels when shopping habits were store dominated. The pandemic will have helped pivot spending habits online as consumers were forced to stay indoors during national lockdowns and travel bans were in place worldwide.
- 74% of shoppers bought designer fashion online in the past 3 years.
- 51% of shoppers bought designer fashion in stores, despite the national lockdowns.
Millennials are more likely to have been negatively impacted by the pandemic than average, with a higher incidence of furloughing and job losses. The resulting economic uncertainty experienced has led to younger shoppers taking a more conservative mindset when it comes to designer fashion buying, with some turning to second-hand and rental retailers to help them buy into luxury.
Future Market Trends in Designer Fashion
Luxury retailers will have to work hard on translating the in-store experience online to deliver the same level of staff expertise and focus on making digital experiences equally as high-end as those found in stores. Retailers who have stood out have experimented with gamification and leveraged social media platforms. Such as Burberry’s ‘social store’ in China and Louis Vuitton’s recently released game ‘Louis the Game’.
The increasing popularity of second-hand platforms is pushing brands to re-invent ecommerce strategies and create their own selling platforms. These options allow consumers to earn money while benefiting the environment. However, brands can take efforts a step further and involve customers even more by hosting classes, online and in-person, that support reworking or prolonging the life of old items. This creates enjoyable experiences for consumers while empowering them to take action on their own.
Read on to discover more details or take a look at all of our UK Retail market research.
Quickly understand
- Impact of COVID-19 on designer fashion.
- What designer fashion items are purchased.
- How and where designer fashion is purchased.
- Future interests when buying designer fashion items.
- Consumer behaviours and attitudes relating to designer fashion.
Covered in this report
Products: clothing, footwear, underwear, nightwear, handbags, watches, jewellery, other fashion accessories.
Brands: Burberry, Michael Kors, Gucci, Jimmy Choo, Farfetch, Manolo Blahnik, Hurr Collective, Net-a-Porter, Harvey Nichols, Browns, Thrift+, Selfridges, Ralph Lauren, Chanel, Louis Vuitton, Christian Dior, Giorio Armani, Ralph Lauren, Prada, Fendi Srl, Max Mara, Celine, Hugo Boss, Bottega Veneta, Yves Saint Laurent, Calbin Klein, Loewe Harmanos, Givenchy.
Expert analysis from a specialist in the field
This report, written by Emily Viberg, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
The impact of the pandemic and lack of access to offline channels have made shoppers dependent on online channels at every phase of the buying journey- from learning what is on-trend to keeping in touch with brands, from selecting and purchasing products to sharing their shopping experience. Luxury retailers will have to work hard on translating the in-store experience online to deliver the same level of staff expertise and focus on making digital experiences equally as high-end as those found in stores.
Emily Viberg
Retail Analyst
Table of Contents
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Overview
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- Key issues covered in this Report
- COVID-19: market context
- Economic and other assumptions
- Products covered in this Report
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Executive Summary
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- Impact of COVID-19 on designer fashion
- Figure 1: Short, medium and long-term impact of COVID-19 on designer fashion 2020-25
- The market
- Wages continue to outpace inflation
- Figure 2: Real wage growth – Average weekly earnings vs inflation 2016-21
- Number of wealthy individuals in the UK decrease
- Figure 3: Number of HNWIs in the UK, 2008-20
- Value of sterling improves
- Figure 4: Selected international currency exchange rates, annual averages, 2011-21
- Overseas visits to the UK plummet during pandemic
- Figure 5: Total overseas residents’ visits to the UK, 2010-20
- Average spend per visit falls
- Figure 6: Average spend per visit to the UK, 2008-20
- Companies and brands
- Press most popular advertising channel
- Figure 7: Recorded above-the-line, online display and direct mail advertising expenditure on fashion, by media type, 2020
- Brands push forward with sustainability agendas
- The consumer
- 16-24 keenest designer fashion shoppers
- Figure 8: Profile of consumers who have purchased any designer fashion item in the last three years, by gender, age and household income
- Luxury streetwear tops demand
- Figure 9: What designer fashion items consumers have bought in the last three years
- Designer fashion purchasing moves online
- Figure 10: How designer fashion items were bought in the last three years
- Department stores the go-to place for designer fashion
- Figure 11: Where designer fashion items were bought in the last three years
- Second-hand drives future interests when buying designer fashion
- Figure 12: Future interests when shopping for designer fashion
- Opportunity lies within augmented reality
- Figure 13: Percentage of shoppers who are interested in using online tools when buying designer fashion by age
- COVID-19 impacts purchasing of designer fashion
- Figure 14: Designer fashion behaviours
- Transparency becomes key
- Figure 15: Designer fashion attitudes
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Issues and Insights
- Enhance the shopping experience with digital tools
- Leverage social media platforms
- Buy now pay later options help younger shoppers buy into luxury
- Cater to eco-conscious consumers
- Empower consumers to shop more sustainably
- Enhance the shopping experience with digital tools
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Market Size and Performance
- Impact of COVID-19 on designer fashion
- Figure 16: Short, medium and long-term impact of COVID-19 on designer fashion, 2021
- Impact of COVID-19 on designer fashion
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Market Drivers
- Wages continue to outpace inflation
- Figure 17: Real wage growth – Average weekly earnings vs inflation 2016-21
- Financial confidence
- Figure 18: Consumer financial confidence, 2015-21
- Number of wealthy individuals in the UK decreases
- Figure 19: Number of HNWIs in the UK, 2008-20
- Changes in the population structure
- Figure 20: Trends in the age structure of the UK population, 2020,2025 and 2030
- Figure 21: Breakdown of trends in the age structure of the UK population, 2020,2025 and 2030
- Value of sterling improves
- Figure 22: Selected international currency exchange rates, annual averages, 2011-21
- Figure 23: Sterling exchange rate versus selected currencies, annual averages, 2011-21
- Overseas visits to the UK plummet during pandemic
- Figure 24: Total overseas residents’ visits to the UK, 2010-20
- Spend by overseas residents drop in 2020
- Figure 25: Total spend by overseas residents when visiting the UK, 2010-20
- Average spend per visit falls
- Figure 26: Average spend per visit to the UK, 2008-20
- USA remained top visiting country in 2019
- Figure 27: Top 20 markets, by volume of visits to the UK, 2019
- Chinese became second top spenders in 2019
- Figure 28: Top 20 countries, by total amount spent when visiting the UK, 2019
- Average spend per visit is highest for Middle Eastern countries
- Figure 29: Top 20 countries, by average amount spent per visit in the UK, 2019
- GDP should reach pre-pandemic levels by the end of Q1 2022…
- …but the post-COVID bounce back will be short-term
- Employment has held up better than expected
- Inflationary pressures are mounting
- Consumers’ financial wellbeing has slipped from its recent high point…
- Figure 30: Household financial wellbeing index, 2016-21
- …and concerns over inflation are coming to the fore
- Figure 31: Consumer concerns over cost-of-living changes, 2021
- Summary of key economic data, 2020-26
- Figure 32: Key economic data, 2020-26
- Wages continue to outpace inflation
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Launch Activity and Innovation
- Brands push forward with sustainability agendas
- Farfetch and The Restory team up to launch Farfetch Fix
- Figure 33: Farfetch Fix service, 2021
- Manolo Blahnik teams up with The Restory for worldwide repair service
- Figure 34: Mend My Manolo’s service by The Restory, 2021
- Gucci’s vegetable shoes
- Figure 35: Gucci’s sneakers made from sustainable Demetra material, 2021
- Farfetch rolls out pre-order service in a bid to reduce fashion waste
- Net-a-Porter launches Digital ID program to help consumers trace products
- Resale and rental
- Hurr partners with Depop “to power the circular economy” with pre-rented collection
- Figure 36: Hurr Collective’s and depop’s The Loop collection 2021
- Harvey Nichols launches kidswear resale service The Drop Off
- Figure 37: Harvey Nichols kidswear resale service, 2021
- Net-a-Porter launches resale service
- Browns teams up Thrift+ to help customers prolong the life of old clothes
- Figure 38: Browns and The Thrift+ collaboration, 2021
- Harrods teams up with rental marketplace My Wardrobe HQ for new service
- Selfridges debuts new rental service
- Figure 39: Selfridges rental service, 2021
- In-store experiences
- Anya Hindmarch to reveals plans for new physical retail concept The Village
- Farfetched Luxury Play Store
- Burberry blends physical and digital with first social retail store in China
- Selfridges reveals permanent bike shop at Oxford Street flagship
- Figure 40: Selfridge permanent bike shop, 2021
- Figure 41: Selfridges Outside Studio with SoulCycle, 2021
- Luxury and gamification
- Gucci taps into gaming with styling app Drest
- Video Game Fashion
- Louis The Game
- Pandemic heightens role of virtual reality technology
- Ralph Lauren partners with Zepeto to launch virtual fashion collection
- Burberry launches virtual replica of Tokyo flagship store
- Brands push forward with sustainability agendas
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Advertising and Marketing Activity
- Chanel top advertising spender in 2020
- Figure 42: Recorded above-the-line, online display and direct mail advertising expenditure on fashion by selected leading designers, 2016-21
- Press most popular advertising channel
- Figure 43: Recorded above-the-line, online display and direct mail advertising expenditure on fashion, by media type, 2020
- Key campaigns
- Brands highlight sustainable collections
- Prada launches organic denim for pre-Autumn 2021
- Gucci’s Off The Grid collection
- Designer fashion goes digital
- Balenciaga launches digital short film or Autumn 2021 collection
- Louis Vuitton celebrates 200 years with NFT game
- Nielsen Ad Intel coverage
- Chanel top advertising spender in 2020
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What They Buy
- 16-24 keenest designer fashion shoppers
- Figure 44: Profile of consumers who have purchased any designer fashion item in the last three years, by gender, age and household income
- Luxury streetwear tops demand
- …and is male-dominated, but brands need to be more inclusive
- Figure 45: What designer fashion items consumers have bought in the last three years
- Younger shoppers are keen designer fashion byers
- Figure 46: Repertoire of designer fashion items consumers have bought in the last three years
- 16-24 keenest designer fashion shoppers
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How and Where They Shop
- Designer fashion purchasing moves online
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- Figure 47: How designer fashion items were bought in the last three years
- Online channel attracts younger shoppers
- Figure 48: How designer fashion items were bought in the last three years by age
- Department stores the go-to place for designer fashion
- Figure 49: Where designer fashion items were bought in the last three years
- Second-hand market capture online spend from younger shoppers
- Figure 50: Where designer fashion items were bought second-hand in the last three years, by age
- Younger shoppers prefer to buy items online
- Figure 51: Repertoire of how designer fashion items have been purchased in the last three years
- Designer fashion purchasing moves online
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Future Interests when shopping for Designer Fashion
- Second-hand drives future interests when buying designer fashion
- Figure 52: Future interests when shopping for designer fashion
- Payment schemes appeal to male younger shoppers
- Figure 53: Percentage of shoppers who are interested in buying designer fashion items using a buy now pay later scheme, by age and gender
- Opportunity lies within augmented reality
- Figure 54: Percentage of shoppers who are interested in using online tools when buying designer fashion by age
- Second-hand drives future interests when buying designer fashion
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Designer Fashion Behaviours
- COVID-19 impacts purchasing of designer fashion
- Figure 55: Designer fashion behaviours
- Social media has become an important touchpoint for young shoppers
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- Figure 56: Percentage of shoppers who follow influencers on social media and follow influencers who promote designer fashion on social media by age
- Males interested in online events
- Figure 57: Percentage of shoppers who have attended an online event organised by a designer brand by gender
- COVID-19 impacts purchasing of designer fashion
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Designer Fashion Attitudes
- Transparency becomes key
- Brands push forward sustainability agendas
- Figure 58: Designer fashion attitudes
- Younger shoppers want to support smaller designers
- Figure 59: Percentage of shoppers who agree it is important to support smaller designers by age
- Transparency becomes key
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Appendix – Data Sources, Abbreviations and Supporting Information
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- Consumer research methodology
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About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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