Plant-Powered Make-up: Fresh Opportunity for Growth
In 2022, sales of luxury goods grew dramatically. Growth was partly due to the relaxation in Covid rules and people eagerly spending the savings made over the covid years. In 2022, about half of all adults aged 18-29 lived at home. Between their salaries and the stimulus cash offered by governments worldwide, the influx of money fuelled a boom in luxury product purchases.
In 2023 – without those stimulus checks and amid a possibly pending recession, there is a shift in who is buying luxury goods, and the middle-income consumer is under a lot more pressure.
Nevertheless, according to Bain & Co., the personal luxury market is projected to grow by 3%-8% in 2023. Consumers who continue to buy luxury will gravitate toward major luxury brands over smaller brands. The luxury goods sector may not see the 2022 profits in 2023, but will be driven by continued growth.
And – new trends in the luxury goods market will be based on new and creative ideas and concepts. What are the latest luxury-shopping trends to gain popularity among consumers?
Sustainability – There is a growing demand for sustainable luxury products. Consumers are increasingly concerned about the environmental and social impact of their purchases. Luxury brands are incorporating sustainable practices in their production processes, using eco-friendly materials, and adopting ethical sourcing.
Bespoke – Customization and personalisation have always been sought after, but now they have become even more important in the luxury market. Customers are seeking unique and exclusive experiences, and luxury brands offer personalised products, services, and experiences to cater to individual tastes and preferences.
Resale – luxury resale has long fallen under the domain of vintage boutiques, thrift stores, and, more recently, online marketplaces. From 2023, experts expect more luxury brands to take control of their second-hand markets. This is strongly linked to the interest in resale to a growing focus on sustainability among luxury brands.
Experiential luxury – Luxury consumers are shifting from owning material possessions to seeking memorable experiences. Luxury brands are responding by creating immersive experiences, such as exclusive events, personalised travel experiences, and unique collaborations.
Digital revolution – Luxury brands are embracing digital technologies to enhance customer experiences. Virtual reality (VR), augmented reality (AR), and artificial intelligence (AI) are being used to create interactive and immersive shopping experiences, both online and offline.
Influencer luxury – Influencer collaborations have become a popular marketing strategy for luxury brands. Working with influencers and brand ambassadors helps create a sense of authenticity, reach broader audiences, and tap into new markets.
Heritage and craftsmanship – There is a renewed appreciation for traditional craftsmanship and heritage. Luxury consumers are seeking out products that reflect timeless quality, artisanal expertise, and a sense of history. Brands are emphasising heritage and craftsmanship as unique selling points.
Wellness – Luxury brands are expanding into the wellness sector, offering products and services that promote physical and mental well-being. This includes luxury spa treatments, wellness retreats, eco-friendly beauty products, and conscious experiences.
ADK Insights is ready to help clients better manage these challenging times. As an agency specialising in identifying and creating new market opportunities, we can advance the purchase journeys, purchase experience and user experience of consumers to ensure you a better competitive edge.