Luxury Reimagined: Understanding today's new Luxury Shopper
Like most other categories, Luxury goods saw a global decline of 13% in 2020. But some experts predicted a rebound (i).
And luckily for Luxury fans everywhere, they were right.
Two years later, leading Luxury goods companies are reporting growth rates well ahead of those seen pre-pandemic. In fact, they’ve doubled YoY1, with massive increases predicted for 2023 and beyond2.
With shoppers rushing to get out and spend, is it any wonder that digital advertising spend in the Style, Fashion and Beauty category increased a staggering 79% in December 20213?
But today’s Luxury shopper may not be who you think. Skip the old images of posh trust funders trundling down Bond Street. These days, 35% of Luxury shoppers are male–increasingly younger males4 —and far more likely to buy from their favourite brands on the resale market.
Yes, we said resale. In a time when consumers are conscious of the cost of living, even brands like Gucci and Valentino are going second-hand, with “verified” storefronts through resellers like eBay and The Real Real.
And beyond seeking value, today’s young Luxury shopper seeks brands with values—like sustainability, ethical sourcing and a lower carbon footprint. In fact, 43% of Europeans aged 18-34 plan to buy more second-hand items and explore Luxury rental options in the next 12 months5.
In seeking young Luxury shoppers, brands are turning to digital channels, with brands running virtual fashion shows and activating within gaming spaces. At Yahoo, we’ve been speaking to these digital-first shoppers through interactive campaigns like “ELECTRIC/CITY”, a unique merging of brands and voices like Charli Cohen, Selfridges & Co and Pokémon.
1 Yahoo Internal, UK. Date Period Analysed 01/01/21 - 31/12/21. n=279,947 for 129 luxury brands. Excludes reseller sites. Week 50,51,52 2020 vs Week 50,51,52 2021.
3Pathmatics UK, 1st December 2020 - 31st December 2021; Category: Style, Fashion and Beauty.
4Yahoo Internal, UK.
5Statista Consumer Survey Luxury Special May 2021 & /Yahoo Inc/YouGov Retail Study Sept 2021, 8,000 European 18+ Adults