Designer Fashion - UK - December 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Overseas visits and spend drop
Figure 1: Total spend by overseas residents in the UK, 2008-19
Companies and brands
Luxury brands focus on own-branded websites
Growing interest in second-hand luxury fashion
Louis Vuitton spends the most on ad campaigns
The consumer
Luxury streetwear drives demand
Figure 2: What designer fashion items consumers have bought in the last 3 years, August 2019
Gifting key purchase driver
Figure 3: Who designer fashion items were bought for in the last 3 years, August 2019
Department stores first choice for designer fashion
Figure 4: Where designer fashion items were bought in the last 3 years, August 2019
Over-45s want designer fashion that keeps its value
Figure 5: Designer fashion purchasing behaviour, August 2019
Demand for better quality
Figure 6: Attitudes towards designer fashion purchasing, August 2019
Millennials want more ethical designer fashion
Figure 7: Issues related to designer fashion purchasing, August 2019
Appealing to those who can’t afford luxury
Figure 8: Reasons for not buying designer fashion, August 2019
What we think
ISSUES AND INSIGHTS
What are the main changes happening in designer fashion?
The facts
The implications
What are the opportunities for driving sales of designer fashion?
The facts
The implications
How can the luxury sector tap into demand for experiential retailing?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Wealthy individuals in the UK decline
Changes in the population structure
Overseas visits drop
Average spend per visit is highest for Middle Eastern countries
MARKET DRIVERS
Real wage growth and inflation remain healthy
Figure 9: Real wage growth – Average weekly earnings vs inflation, 2016-19
Future consumer confidence begins to wane
Figure 10: Consumer financial confidence, January 2017-September 2019
Wealthy individuals in the UK decline
Figure 11: Number of HNWIs in the UK, 2008-18
Changes in the population structure
Figure 12: Trends in the age structure of the UK population, 2019-29
Figure 13: Breakdown of trends in the age structure of the UK population, 2019-29
Value of Sterling remains low
Figure 14: Selected international currency exchange rates, annual averages, 2003-19
Figure 15: Sterling exchange rate versus selected currencies, annual averages, 2014-19
Total overseas visits drop
Figure 16: Total overseas residents’ visits to the UK, 2010-19*
Downturn in spend by tourists to the UK
Figure 17: Total spend by overseas residents when visiting the UK, 2008-19
Average spend per visit declines
Figure 18: Average spend per visit to the UK, 2010-18
US overtakes France as top visiting country in 2018
Figure 19: Top 20 markets, by volume of visits to the UK, 2018
Americans are top spenders when visiting the UK
Figure 20: Top 20 countries, by total amount spent when visiting the UK, 2018
Average spend per visit is highest for Middle Eastern countries
Figure 21: Top 20 countries, by average amount spent per visit in the UK, 2018
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Luxury brands focus on own-branded websites
Luxury department stores invest in technology
Luxury brands target young with social media
A year of collaborations
Growing interest in second-hand luxury fashion
Louis Vuitton spends most on ad campaigns
Focus on digital campaigns
ONLINE
Online gains share of total fashion spend
Multi-brand pureplays
Farfetch
Yoox Net-a-Porter
MatchesFashion
Luxury brands focus on own-branded sites
Luxury department stores
Online retailers’ competitive strategies
Boosting customer experience
International expansion
Social media
LAUNCH ACTIVITY AND INNOVATION
Collaborations
Acne Studios and Mulberry reveal ‘Friendship’ collection
Figure 22: Mulberry X Acne Studio ‘Friendship’ collection, 2019
Victoria Beckham X Reebok Spring 2019 collection
Fendi X Nicki Minaj in a futuristic collaboration
Inclusivity
Ralph Lauren PRIDE polo
Fenty becomes first LVMH brand headed by woman of colour
H&M collaborates with Italian couturier Giambattista Valli
Figure 23: H&M X Giambattista Valli, 2019
In-store experiences
Burberry launches its first video game
Flannels opens first London flagship
Figure 24: Flannels Oxford Street store, 2019
Selfridges new menswear floor
Figure 25: Selfridges skate bows on its menswear floor, 2019
Harrods new menswear department
Second-hand luxury fashion
Selfridges launches second-hand clothing concession
Figure 26: Vestiaire Collective at Selfridges, 2019
Farfetch teams up with second-hand clothing platform Thrift+
Figure 27: Farfetch X Thrift+ service, 2019
Ralph Lauren and Depop
Sustainable fashion
Stella McCartney collaborations
Prada’s Re-Nylon bags
Figure 28: Prada’s Re-Nylon bags, 2019
Ralph Lauren’s Earth Polo
Max Mara upcycles eco padding for coats
Pop-ups
Fenty to open first UK pop-up at Selfridges
Balmain pop-up at Selfridges
Figure 29: Balmain pop-up at Selfridges, 2019
Harrods and NSPCC designer charity pop-up
Figure 30: Fashion Re-Told at Harrods, 2019
Dior opens Harrods pop-up
ADVERTISING AND MARKETING ACTIVITY
Advertising spenders
Figure 31: Recorded above-the-line, online display and direct mail advertising expenditure on fashion by selected leading designers, 2014-19
Press remains the biggest media channel although slowing
Figure 32: Recorded above-the-line, online display and direct mail advertising expenditure on fashion, by media type, 2014-19
Key campaigns in 2019
Inclusivity
A cinematic approach
A natural backdrop
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Luxury streetwear drives demand
Rising demand for designer bags and jewellery
Gifting key purchase driver
Rise in online purchases
Department stores first choice for designer fashion
Over-45s want designer fashion that keeps its value
Demand for better quality
Millennials want more ethical designer fashion
Luxury brands look to be more diverse
Appealing to those who can’t afford luxury
WHAT THEY BUY
Luxury streetwear drives demand
Figure 33: What designer fashion items consumers have bought in the last 3 years, August 2019
Trend for designer trainers
Rise in purchasing of designer jewellery
Handbags are a growth area
Figure 34: What designer fashion items consumers have bought in the last 3 years, August 2017 and August 2019
Focus on menswear
Figure 35: What designer fashion items consumers have bought in the last 3 years, by gender, August 2019
Young are keenest designer shoppers
Figure 36: Profile of consumers who have purchased any designer fashion item in the last three years, by gender, age and household income, August 2019
Millennials buy most items
Figure 37: Repertoire of designer fashion items consumers have bought in the last 3 years, August 2019
WHO THEY BUY FOR
Gifting key purchase driver
Figure 38: Who designer fashion items were bought for in the last 3 years, August 2019
Women treat themselves to designer fashion
Figure 39: Who designer fashion items were bought for in the last 3 years, by gender, August 2019
Rise in designer childrenswear buying
HOW AND WHERE THEY SHOP
Rise in online purchases
Figure 40: How designer fashion items were bought in the last 3 years, August 2019
Department stores first choice for designer fashion
Figure 41: Where designer fashion items were bought in the last 3 years, August 2019
25% of under-25s buy pre-loved designer fashion
Figure 42: Consumers who have bought designer fashion items second-hand in the last 3 years, by age and gender, August 2019
Men aged 16-44 shop at designer outlets
Figure 43: Where designer fashion items were bought in the last 3 years, by age, August 2019
Figure 44: Where designer fashion items were bought online in the last 3 years, by age, August 2019
Older Millennials shop around
Figure 45: Repertoire of where designer fashion items were bought in the last 3 years, August 2019
DESIGNER FASHION SHOPPING BEHAVIOURS
Designer fashion that will keep its value is key
Figure 46: Designer fashion purchasing behaviour, August 2019
Good reviews encourage purchasing
Figure 47: Consumers who are most likely to buy designer fashion that has good reviews, by age, August 2019
Social media is an important part of the buyer journey
Figure 48: Consumers who are most likely to buy designer fashion that they have seen on social media, by age, August 2019
Males want designer fashion that looks different and exclusive
Figure 49: Consumers who are most likely to buy designer fashion that only has a limited amount of pieces available, by age and gender, August 2019
ATTITUDES TOWARDS DESIGNER FASHION 
Demand for better quality
Figure 50: Attitudes towards designer fashion purchasing, August 2019
Consumers care how brands act
Figure 51: Attitudes towards designer fashion purchasing, by gender, August 2019
Appealing to new customers
ISSUES RELATED TO DESIGNER FASHION 
Millennials want more ethical designer fashion
Figure 52: Issues related to designer fashion purchasing, August 2019
Demand for luxury brands to be more diverse
Affluent believe in-store experience better than online
Figure 53: Agreement with statement ‘You get a better experience when buying designer fashion items in-store than online’, by socio-economic group, August 2019
Millennials want plus-sized designer fashion
Figure 54: Designer Fashion – CHAID – Tree output, September 2019
Figure 55: Designer Fashion – CHAID – Table output, September 2019
Methodology
REASONS FOR NOT BUYING DESIGNER FASHION 
Appealing to those who can’t afford luxury
Figure 56: Reasons for not buying designer fashion, August 2019
Preferring an experience over fashion
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology