Managing Director & Senior Partner
The luxury market is a significant economic force and—particularly for Europe—a substantial driver of GDP and competitive advantage.
By 2024, personal and experiential luxury alone are estimated to be a €1,1260 billion market—a significant increase from €845 billion in 2015.
Although the luxury market is ready to grow, its rules are changing rapidly, and players need to be nimble in order to stay competitive. Market development is leading to significant growth in luxury. Digital is happening quickly and forcefully, driving luxury brands to be far more customer-centered in everything they do.
Another significant trend is the rise of experiential luxury, including categories such as high-end food and wine, luxury hotels, and exclusive vacations. Nearly half of all consumers—and a majority of Millennials—say they’re buying fewer products and purchasing more experiences. By 2022, the experiential segment is forecast to account for nearly two-thirds of the total luxury market—representing a fundamental shift in consumer behavior, from owning to being.
We understand the trends and driving forces of the luxury market. Our extensive research and relationships in the luxury space help clients focus on four key areas:
We partner with clients to challenge conventions and deliver new insights and approaches. By leveraging our vast network of people and organizations in the luxury industry—including leading players in fashion, high-end retail, luxury hotels, automotive, and jewelry—we enable clients to take rapid action and anticipate future trends.
The fashion industry has improved its social and environmental performance in the past year, but at a slower rate than the previous year. Despite this improvement, the fashion industry is still far from sustainable.
While many fashion brands talk the talk when it comes to digital marketing, few truly walk the walk. But companies have a lot to gain by taking digital capabilities from basic to state of the art, including an average 15% increase in revenues.
Nearly six out of ten luxury sales are digitally influenced—whether brands are ready or not. Here’s how they can shift to the digital mindset they need.
Facing a glut of brick-and-mortar stores in many cities, leading brands are easing up on new locations. While still keeping multiple stores in traditional luxury shopping hubs, they may opt to increase e-commerce sales elsewhere.