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10 Key Trends In Luxury Retail January 06, 2016 (0 comments)
New York, NY—As the global luxury market gears up for the coming wave of both Millennials and consumers from emerging markets, a luxury consultancy in London has identified 10 key trends that will impact luxury retail in the long term.
According to a Luxury Daily article written by Tammy Smulders, managing partner and global executive director at Havas LuxHub, those trends are:
1. A trivergence of digital, in-store, and entertainment, with digital as the hub for research and stocking up on favorites and the in-store experience customized and service-driven.
2. Emerging market customers. Global brands are looking toward Africa as the next frontier of new customers.
3. Tourism. In Europe especially, brands are relying heavily on international travelers to supply half or more of their annual revenues.
4. Polarization of luxury. As with income, the luxury market is becoming more and more divergent. Brands that once were able to offer something for everyone will have to choose between ultra-luxe or accessible.
5. Magalogs: Editorial media is becoming the next digital storefront, where consumers will be able to purchase a product directly from the page or TV screen.
6. “Menaissance:” Menswear has been thriving and while it’s currently mostly the over-35 set that can afford luxury togs, under-35 Millennials are highly style-driven as well as digitally savvy. The current growth in menswear should continue.
7. Personalized storytelling. Brands will need to create fresh, meaningful, and personal experiences for customers.
8. Brand as media: Luxury brands will increasingly become media channels as well, offering high quality, rich content. Retailers will need to do the same, adding a shoppable aspect.
9. Millennial influence: At present, the over-35 consumer still drives 83% of luxury spending, but already the cultural impact of Millennials is driving luxury marketing. The leading edge of this group also is on the cusp of 35, the entry point into peak spending years.
10. Low-key luxury: The shift from external displays of luxury to internal satisfaction of how it makes one feel will continue.