Luxury brands had a big problem when the pandemic hit worldwide in 2020. With people fighting over toilet paper, how could luxury shopping survive? But it did. How exactly did the luxury segment adapt and how are they planning for the future? We cover this and more in our 2021 Luxury Brand Industry Report. It’s fueled by consumer and market intelligence. And we have a preview below!
First, a couple of stats:
- The global luxury market is expected to return to 2019 levels by the end of 2022 or early 2023, driven by digital sales growth.
- Millennials and Gen Z will make up 50% of the total luxury market by 2025, and their spending habits will define what luxury goods and experiences will be in demand for years to come.
Tracking Luxury
It’s a more competitive space out there since the pandemic hit, but one segment that seemed to adapt easily was luxury. Though they made it seem effortless (as they often do on the catwalk), there was a lot involved, and our report details this by completing a brand analysis of top luxury brands that were armed and ready.
Our luxury categories are Fashion, Jewelry, Automobile and Retail/eCommerce:
Jewelry Category
Jewelry never goes out of fashion, and perhaps that’s why its sentiment averages overall at 78%.
We detail the difference in sentiment and likability – which are two different aspects of brand health and worth understanding. The distinction can effectively push the fence sitters to purchase. We see the K-Pop Craze continuing in full effect, as brands partner with these top stars and winning massive exposure from K-Pop brand ambassadors.
Fashion Category
Fashion dominated our list. Those who were quick to pivot early on in the pandemic earned the approval of an increasingly tense crowd. We share why influencers and collaboration are the key to staying fresh and relevant in the world of fashion. And ways we saw brands like Louis Vuitton listening to worldwide conversations, not being constrained by gender and selflessly lending a hand when the world needed it.
Auto Category
From Tesla to Porsche, we have four auto makers populating our top ten this year, which is a first. There’s some pretty stellar consumer love, with Bentley winning an 82 on a sentiment scale from –100 to +100. And you can bet there’s a good bit about Elon Musk in there! We dig into why some did so well, or fell by the wayside, with consumer intelligence at the wheel.
Retail & Ecommerce Category
How did the luxury segment see success in a time where many were jobless and quarantined to home? Much of it was due to ecommerce and the adoption of digital transformation. And the global luxury market is expected to return to 2019 levels by the end of 2022 or early 2023, thanks to digital sales growth. This is a critical statistic as 96% of Americans alone own a cellphone of some kind and 79% of consumers made purchases using them in the past six months. In our report, we detail ways retail and ecommerce are making bold moves to attract luxury shoppers.
The Next Generation of Luxury
Performing brand and consumer analyses we ranked the top luxury brands and focused in our report on the influencers and actions that helped them experience such success.
Younger generations, including Millennials and Gen Z, are expected to make up 50% of luxury purchase by 2025. Their spending habits will shape how luxury goods and experiences will look like in years to come. Understanding what their needs and wants are will be critical.
Many brands were at the receiving end of rapid-fire negative sentiment this past year when they didn’t pivot to adapt to shifting values. In a post-pandemic world, this means being cognizant on your company’s carbon footprint and having definite plans in place to lessen it. And communicating that out to consumers. And it also often requires a commitment to the planet’s wellbeing – be it recycling, equal rights activism, humanitarian projects, or financing charities.
But, each consumer set is a little different. What works for one category or brand may not work for you.
Consumers want to support companies whose ideals line up with theirs – and they greatly resent being lumped together by generation. Luxury brands are very visible and have been challenged to offer solutions. With market research as a guide, many were able to capture, analyze and respond to consumer emotions and ethics. Not only that, but they were able to dissect these conversations in great detail and take consumer intelligence-informed risks that supported new messaging.
Staying informed is the new fashion statement in luxury and with all brands, as we discuss in the 2021 Luxury Brand Industry Report. Brands unprepared or unwilling to shift learned this the hard way when COVID-19 struck. And after you read the report, reach out for a demo and we can help you identify your target audiences’ ‘must have values’ so you can ensure you’re measuring up in every way possible.
