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In recent decades, there has been an increasing demand of luxury goods. Valued at around $420 billion today, the industry for high-end shoes, watches, bags and more is set to reach a size of nearly $500 billion by 2020.
Here are top 4 trends that are shaping the luxury fashion industry.
Discounted Luxury
Everyone loves to get sales and discounts on their purchased products. Wealthy Shoppers are looking for alternatives to keep their spending in control by not purchasing multiple items at full price.
Due to this trend, Luxury brands have to rely on promotions for clearing their shelves. The luxury fashion brands are coming up with unique strategies for offering discounts to increase sales and profit margins without having to cheapen their brand.
Personalization
Customers love a hint of a personal touch to the product they buy. Personalisation and curation is driving the luxury fashion segment. Fashion companies are delivering personalisation in many forms – from more customised products, to curated recommendations, communications and storytelling that connects to individuals.
Today’s consumer values coalesce around authenticity and individuality. Thus, brands will value data even more to tailor recommendations, engage influencers and personalise experiences.
Going Online
Consumers are increasingly considering online platforms as the first point of search. Online sites offer a wider variety of products, and often provide superior customer convenience and relevance, from insight-driven marketing to seamless logistics and customer care. Due to this growing trend, E-commerce majors now spot big business opportunity in luxury fashion segment
Online platforms are growing in scale and reach, compelling luxury fashion brands to find ways of engaging more with these powerful sales channels. The question for luxury fashion brands is no longer ‘if’ but ‘how’ to collaborate with big online platforms. These platforms are providing an attractive value proposition for high-end brands; they are taking steps like developing improved user experiences and services.
Targeting Millennials
Millennials tastes are shaping the luxury landscape for a long time now. According to a research, 99 million millennials now make up a larger segment of luxury fashion segment. The famous luxury brand Gucci is so successful at attracting younger customers that 50 percent of its sales are to millennials, while Saint Laurent is even larger at 65 percent. Luxury fashion brands such as Gucci, Saint Laurent and Louis Vuitton are using social media to appeal to millennial customers to great effect.
