Millennials are now a driving force in the luxury retail market. It is expected that the global luxury market will top USD 1.5 trillion by 2025, 50% of which will be contributed by the millennial generation.
The shift in demand of millennial consumers is causing an internal change in assortment mix to what customers want. External factors also cause change in luxury brands such as Intellectual Property (IP) protection issues and more recently, the coronavirus outbreak in China.
One defining characteristic of the millennial consumer is their increasing environmental consciousness – online searches for “sustainable fashion” have tripled between 2016 and 2019. In reaction, luxury brands are making concerted efforts: a large number of luxury brands signed the G7 Fashion Pact to minimise the environmental impacts of fashion with Prada being the first among luxury brands to sign a sustainability deal.
Another defining feature of today’s luxury market is streetwear – a global phenomenon, the product of a cultural shift. It has worked its way into the luxury segment, where luxury streetwear has gained a fresh impetus among millennials.
An external factor that effects the performance of luxury brands is the counterfeit goods market that has been growing with the rise of e-commerce. Brands are faced with IP protection issues from products on online marketplaces and luxury resale websites.
More recently, the international luxury industry has taken a hit following the novel coronavirus outbreak in China. With Chinese buyers accounting for 35% of the market share, luxury brands must quickly adapt to the current market situation.
In this report, we analyse luxury brands to measure their success and look at ways these brands remain relevant despite the shifting consumer demand.
More than 110,000 data points were screened from March 2019 to February 2020 from online retailers across US and UK markets.