Millennial's, China, Sustainability: New Luxury Figures
What dynamics are the luxury of tomorrow? In the sixth edition of its True Luxury Global Consumer Insight , the firm Boston Consulting Group - in collaboration with the Altagamma Foundation - decrypts the major levers of consumption of the sector.
BCG report paints a glimpse of burgeoning luxury goods, whose 4.6% overall growth expected over the next six years could lift the sector's weight in all market segments to 1.3 trillion euros . An upward trend, driven by the Millennials' appetite for high-end goods: in 2025, this category of consumers could thus represent half of luxury buyers. Other strong profiles, Chinese consumers who, over the same period, could represent up to 40% of the market and generate 75% of its growth.
If the study details some peculiarities of these profiles, a red thread persists, that of the connected user : 80% of luxury consumers - 95% in China - interact on social networks, especially with brands and influencers.
The rise of the Second Hand and Sustainability
We talk about it in our White Paper : the second hand - which includes processes such as the resale of used products or the offprice - has the wind in its sails and is making a progressive place in the world of luxury. According to the BCG study, 45% of premium consumers contribute to the second-hand market , which could well record growth of + 12% by 2021 to reach € 31 billion. Boosted by more intuitive platforms and more transparency in authentication - especially via blockchain as evidenced by the Aura project of LVMH -, the second hand now exceeds the trend to establish itself as a solid alternative consumption mode.
In addition to the economic aspect, the second hand also carries sustainable values towhich buyers are increasingly sensitive. The report highlights the fact that more than 60% of luxury consumers say they "prefer a brand that cares about its social and environmental impact", which is ten points more than in 2013. 56% of luxury consumers also indicate that they want to know more about Corporate Social and Environmental Responsibility policy . "The youngest consumers are primarily concerned with environmental (37%), animal (27%) and ethical (21%) issues," explains Olivier Abtan, Associate Director of BCG.
Collaborations: in the name of exclusivity
According to the report, the other lever on which the luxury second-hand market relies is the search for the exception through pieces of old, rare and / or vintage collections. It is this same philosophy of the Unique that could support the particular appetite for capsule collections conducted jointly by Maisons and streetwear brands , like Supreme and Jean Paul Gaultier or Kith and Versace , in the movement of the arrival of Virgil Abloh - founder of the label Off / White - at the head of the creations Man of Louis Vuitton.
Luxury pieces, casualwear - which attracts 74% of respondents - and sportswear are now mixed in favor of a style reflecting the singularity of the individual and his personality . 46% of consumers surveyed said they had "replaced part of their spending on luxury goods with more luxury products niches or sportswear" ...
To extract these dynamics, BCG relied on a panel of 12,000 consumers - declaring an average expenditure of 39,000 euros per annum on the Luxury sector, all categories combined - across Germany, Brazil, China and Korea. South, the United States, France, Italy, Japan, the United Kingdom and Russia, completed for the first time by insights from India.