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The global luxury goods sector is experiencing a golden period of growth. It expanded 6% in 2018, hitting US$292bn, and this sparkling performance is set to continue with annual growth of around 3-5% – reaching US$360-410bn by 2025.
However, with tastes diversifying and the number of shipping locations increasing, how do you get ahead in the luxury goods sector? Here are the tips you need to sparkle in this competitive space.
A QUARTER OF SALES ON THE WEB
Consumers now expect to interact with their favorite brands online, and it is predicted that 25% of luxury purchases will be made through the web by 2025. By then, Generation Z and Millennials will account for 45% of the global personal luxury goods market.
This potential purchasing power means that businesses like yours need to focus on digital platforms including social media for marketing luxury goods. A strong digital team that knows the products well is vital for building your e-commerce presence and resultant sales.
This potential purchasing power means that businesses like yours need to focus on digital platforms including social media for marketing luxury goods. A strong digital team that knows the products well is vital for building your e-commerce presence and resultant sales.
CHINA'S RISING MIDDLE CLASS
Fueled by the emergence of a new middle class that loves to buy premium products, the Chinese luxury goods market is expected to account for 40% of the sector total by 2024. However, more than half of China's luxury consumers live outside its top 15 cities, making digitized marketing and effective delivery services essential. Don't treat China as a single market – it's a big country with many local trends, so market to local tastes. Chinese consumers (especially younger generations) use social media to make buying decisions.
What's more, watch out for the US-China trade war and its accompanying price hikes for certain high-end brands, dissuading consumers from buying internationally produced merchandise. Find a marketing hook that sets your goods apart.
One emerging luxury sector is men's jewelry. Global sales reached US$5.3bn in 2017, increasing from 2012's US$4.3bn, and growth continues steadily. Men's rings are most popular, taking up a third of sales, while necklaces and chains come in second. The Deakin & Francis creative director, Henry Deakin, also shared that personalized products have dominated for them.
Key players include William Henry, an American men's accessories brand, which boasts celebrity customers such as Nick Jonas, Pierce Brosnan and Harrison Ford. Make sure you're well placed to take advantage of the expanding men's luxury market, and adapt your marketing and product selections accordingly.
Faux leather is popular due to its vast applications, from bags and shoes to car interiors. Used by Olivia Burton in a range of watches, it now has an estimated market worth of US$85m by 2025. From Banana Republic to Stella McCartney, it's a trend that's showing no signs of slowing down.
TIP: Add faux or synthetic leather to your webshop, or attract customers by offering vegan leather instead.
An increased demand for vegan cosmetics and skin care saw new launches globally increase 175% from 2013 to 2018, with the annual market growth rate predicted at 6.3% to 2025. Products that avoid animal ingredients entirely, including beeswax and honey, are most popular among younger shoppers who are more likely to follow a plant-based diet.
TIP: Check your labeling. Could you make more of your free-from features?
Companies big and small are working with farmers directly to improve ingredient sustainability, making their supply chains transparent to consumers. Lily Farm Fresh Skincare even permits public viewing of their laboratory and surrounding herb fields.
TIP: Look into certifications that show your green credentials.
Faux leather is popular due to its vast applications, from bags and shoes to car interiors. Used by Olivia Burton in a range of watches, it now has an estimated market worth of US$85m by 2025. From Banana Republic to Stella McCartney, it's a trend that's showing no signs of slowing down.
TIP: Add faux or synthetic leather to your webshop, or attract customers by offering vegan leather instead.
An increased demand for vegan cosmetics and skin care saw new launches globally increase 175% from 2013 to 2018, with the annual market growth rate predicted at 6.3% to 2025. Products that avoid animal ingredients entirely, including beeswax and honey, are most popular among younger shoppers who are more likely to follow a plant-based diet.
TIP: Check your labeling. Could you make more of your free-from features?
Companies big and small are working with farmers directly to improve ingredient sustainability, making their supply chains transparent to consumers. Lily Farm Fresh Skincare even permits public viewing of their laboratory and surrounding herb fields.
TIP: Look into certifications that show your green credentials.
GETTING YOUR GOODS TO CUSTOMERS
Whether you're shipping glittering jewels or customized clutch bags, having a reliable shipping partner never goes out of style. Make sure your chosen service can deliver goods to all the countries you want to target, as well as offering expedited options when needed, helping you serve fashion and luxury goods consumers across the world.
GETTING YOUR GOODS TO CUSTOMERS
Whether you're shipping glittering jewels or customized clutch bags, having a reliable shipping partner never goes out of style. Make sure your chosen service can deliver goods to all the countries you want to target, as well as offering expedited options when needed, helping you serve fashion and luxury goods consumers across the world.
