The document discusses how millennials are reshaping the luxury goods industry, with their preferences for uniqueness, urgency in purchasing, and reliance on digital interactions influencing not just their own purchases but also older generations. By 2025, millennials are projected to represent 40% of the global luxury market, and online channels and brand-owned stores will be the two largest sales channels, each accounting for 25% of sales, though physical stores will still represent the majority at 75%. Younger consumers are more likely to research and make their first luxury purchase online compared to older generations.
Our team has been talking to experts in the world of European fashion and retail technology to learn more about which business trends to keep an eye on in the coming months.
"Adapting to the new digital world is probably easier for smaller companies. Italian fashion brands and retailers need to strike a balance between tradition and innovation." - Alice Carli, CEO – L’Autre Chose
Retail Environment: US Retail Revolution
1. Retail Revolution Is Happening: Store Openings and Closures
2. All-Channel Universe Will Require Adaptation
Top 8 Global Retail Trends
1. Corporate Innovation Is the New R&D
2. Store as a Platform
3. Wellness as the New Luxury
4. Consumers Want to Be Part of a Community
5. Personalization and Customization
6. Resale Is Thriving While Retail Is Struggling
7. Demographics Suggest Opportunity in Plus-Size Apparel
8. Silver Economy: Aging Population Will Impact Retail
The growth of online shopping and the surge of off-price retailing are reshaping the retail industry. In 2016, retailers who want to survive will have to respond by restructuring their businesses. This POV captures some of the major Retail lessons learnt from 2015 and forecast for the year 2016 and beyond.
As we break in 2021, the learnings of the past year have sorted core truths from gimmicks, particularly in the retail landscape. See how, in many ways, it is the backbone of our commerce that has emerged most vital.And why establishing frameworks which withstand the litmus test of uncertainty have become the most important ingredient in a business’s continued success.
Our team has been talking to experts in the world of European fashion and retail technology to learn more about which business trends to keep an eye on in the coming months.
"Adapting to the new digital world is probably easier for smaller companies. Italian fashion brands and retailers need to strike a balance between tradition and innovation." - Alice Carli, CEO – L’Autre Chose
Retail Environment: US Retail Revolution
1. Retail Revolution Is Happening: Store Openings and Closures
2. All-Channel Universe Will Require Adaptation
Top 8 Global Retail Trends
1. Corporate Innovation Is the New R&D
2. Store as a Platform
3. Wellness as the New Luxury
4. Consumers Want to Be Part of a Community
5. Personalization and Customization
6. Resale Is Thriving While Retail Is Struggling
7. Demographics Suggest Opportunity in Plus-Size Apparel
8. Silver Economy: Aging Population Will Impact Retail
The growth of online shopping and the surge of off-price retailing are reshaping the retail industry. In 2016, retailers who want to survive will have to respond by restructuring their businesses. This POV captures some of the major Retail lessons learnt from 2015 and forecast for the year 2016 and beyond.
As we break in 2021, the learnings of the past year have sorted core truths from gimmicks, particularly in the retail landscape. See how, in many ways, it is the backbone of our commerce that has emerged most vital.And why establishing frameworks which withstand the litmus test of uncertainty have become the most important ingredient in a business’s continued success.
We all know that the same survival of most Retail businesses, especially in the Fashion&Luxury field, is now at risk but why?
Is Covid-19 the real cause of this disruption or is this pandemic more of an accelerator of these radical changes?
But, most importantly, what can our firms do to tackle the most dangerous crisis they have ever faced and reinvent their business model?
I have tried to answer all these questions with a deep analysis of the Fashion Retail Business and the suggestion of a set of solutions that will help both SMEs and traditional Retailers to bridge the gap with their competitors transforming this crisis into an opportunity.
The European apparel market is undergoing a period of profound transformation. The impact of Covid-19 sent shockwaves throughout the global economy, dislocating international supply chains and reshaping the way consumers live, work, communicate and shop.
How Travel Brands Can Target Offers Like Retail Giants SheerID
Digital travel sales continue to grow in the travel industry, with some estimates predicting the industry earned close to $700 billion in 2018. But despite this success, today’s travel brands face a looming e-commerce crisis. Mass discounting, a tactic utilized by 93 percent of travel industry marketers, has conditioned consumers to expect large discounts on travel purchases, cutting into profit margins and leading to diminished brand recognition and loyalty.
In order to build a more sustainable e-commerce model for the long term, today’s travel brands must shift away from this one-size-fits-all online discounting approach. This is something they can accomplish by rethinking their sales and marketing strategies to create gated offers – promotions and special discounts designed to target members of a particular group based upon their occupation, life stage or affiliation.
In this webinar, Skift and SheerID examine the trillion-dollar spending power behind high-value customer groups like military, college students, teachers, and seniors and what motivates them to make purchasing decisions. By following the lead of industry-leading retail brands, we’ll uncover actionable strategies and tactics for travel marketers to apply to their own business to drive new customer acquisition and loyalty.
Ecommerce, Marketplaces & Classifieds: Company presentation by Chris Morton, CEO & Co-Founder of Lyst, at the NOAH Conference London 2019, 30-31 October, Old Billingsgate.
Amaze and Profit in a Billion-Dollar Market by Farfetch Sr PMProduct School
Main Takeaways:
-Fashion Digital Market:
-Digital fashion consumers
-What problems tech could solve?
-Product design for fashion
-Trends for fashion product development:
We all know that the same survival of most Retail businesses, especially in the Fashion&Luxury field, is now at risk but why?
Is Covid-19 the real cause of this disruption or is this pandemic more of an accelerator of these radical changes?
But, most importantly, what can our firms do to tackle the most dangerous crisis they have ever faced and reinvent their business model?
I have tried to answer all these questions with a deep analysis of the Fashion Retail Business and the suggestion of a set of solutions that will help both SMEs and traditional Retailers to bridge the gap with their competitors transforming this crisis into an opportunity.
The European apparel market is undergoing a period of profound transformation. The impact of Covid-19 sent shockwaves throughout the global economy, dislocating international supply chains and reshaping the way consumers live, work, communicate and shop.
How Travel Brands Can Target Offers Like Retail Giants SheerID
Digital travel sales continue to grow in the travel industry, with some estimates predicting the industry earned close to $700 billion in 2018. But despite this success, today’s travel brands face a looming e-commerce crisis. Mass discounting, a tactic utilized by 93 percent of travel industry marketers, has conditioned consumers to expect large discounts on travel purchases, cutting into profit margins and leading to diminished brand recognition and loyalty.
In order to build a more sustainable e-commerce model for the long term, today’s travel brands must shift away from this one-size-fits-all online discounting approach. This is something they can accomplish by rethinking their sales and marketing strategies to create gated offers – promotions and special discounts designed to target members of a particular group based upon their occupation, life stage or affiliation.
In this webinar, Skift and SheerID examine the trillion-dollar spending power behind high-value customer groups like military, college students, teachers, and seniors and what motivates them to make purchasing decisions. By following the lead of industry-leading retail brands, we’ll uncover actionable strategies and tactics for travel marketers to apply to their own business to drive new customer acquisition and loyalty.
Ecommerce, Marketplaces & Classifieds: Company presentation by Chris Morton, CEO & Co-Founder of Lyst, at the NOAH Conference London 2019, 30-31 October, Old Billingsgate.
Amaze and Profit in a Billion-Dollar Market by Farfetch Sr PMProduct School
Main Takeaways:
-Fashion Digital Market:
-Digital fashion consumers
-What problems tech could solve?
-Product design for fashion
-Trends for fashion product development:
The power of Chinese e-consumption is unstoppable despite the slowing economy and is estimated to reach 9.6 Trillion RMB by 2020. This sheer magnitude alone is the main reason why we are now taking a spotlight on China’s E-commerce industry.
Amaze and Profit in a Billion-Dollar Market by Farfetch Sr PMProduct School
Main Takeaways:
-Fashion Digital Market:
-Digital fashion consumers
-What problems tech could solve?
-Product design for fashion
-Trends for fashion product development:
This Event is Sponsored by:
Flatfile is the leading data onboarding platform for product teams. Stop spending time wrangling messy and unstructured customer data into your product. With Flatfile, your customers can seamlessly import their own data resulting in faster time to value.
Leading media outlet RETHINK Retail spoke with top retail executives and industry thought leaders about how luxury is shifting into a more digital, personal, and sustainable industry.
See the full article on RETHINK Retail's website: https://bit.ly/37l4fj2
You’ll hear from:
Ron Thurston, VP of Stores at INTERMIX; Author of “Retail Pride”
Line Tousignant, VP Strategy & Experience at Valtech
Shannon Ryan, EVP North America at Valtech
Wolfgang Hoffmann, President of Jaguar Land Rover Canada
Fabiola Velarde, Senior Director Emporio Armani Retail Americas at Giorgio Armani
Ludovic Baussan, Co-Founder & Head of Strategy at 2nd AVE
Elinor Noble, Global Head of Retail Excellence at LOEWE (LVMH)
Francois-Xavier Hotier, President of Ulysse Nardin Americas and Kering Luxury Watches
Sandrine Crener, Program Director at Harvard Business School
Marie Driscoll, Managing Director Luxury & Fashion at Coresight Research
We surveyed eCommerce Managers and CEOs from European countries and prepared the report based on their experiences and our knowledge.
What are the business trends that are going to revolutionize the eCommerce market?
What are the most important technologies to invest in next 5 years?
Why 2017 is the Year of the Bot?
Are marketplaces really worth to invest in?
Facebook's new report predicts huge digital influence in Fashion by 2020Social Samosa
Today, up to $7Billion-$9Billion of the Fashion Market digitally influenced, which is expected to multiply by nearly 4 times as per the report from Facebook.
This slideshare is about the current environment in the luxury and fashion industries due to Covid-19 including accelerating trends, interesting initiatives launched by companies across industries, challenges and opportunities faced, and resulting calls-for-action.
Integrated Marketing Communications Campaign:
- Proposed brand positioning, product offerings, and detailed implementation methods for a client's new business venture
- Completed for the course ADV4800 at the University of Florida
- The team for which I was the Group Lead/Account Executive won Best Strategic Plan
E-commerce Trends from 2015 to 2016 by DivanteDivante
Every year our specialists gather the most significant trends in the e-commerce world.
Here we present you the compedium of knowledge that will help you to choose the best possible direction for your e-business and prevent you from missing out on a great opportunities for the future development!
China’s rise as a global leader in ecommerce has been nothing less than stunning. This year, online retail sales are expected to swell to $1.5 trillion, representing a quarter of China’s total retail
sales volume, and more than the retail sales of the ten next largest markets in the world – combined.
Panel de hogares - indicadores de cambio de operador móvil 19.05
The millenial state of mind
1. THE MILLENNIAL STATE
OF MIND
Digital is reshaping how luxury is purchased across generations.
Bain Media Pack
2. The Millennial State of Mind | Bain & Company, Inc. | Farfetch
Page 1
Key takeaways
• The luxury industry has entered a “new normal,” characterized by lower growth. To
succeed in the next decade, brands will need to refocus on their customers to better
anticipate and cater to their needs. The younger generation will be key: New research
by Bain & Company and Farfetch estimates that millennials will represent 40% of the
global market for personal luxury goods by 2025.
• The characteristics of millennial behavior are already seeping through to older generations—
which accounted for 73% of luxury purchases in 2016.
• This generates a widespread “millennial state of mind” that requires brands to act. It is
characterized by three main traits:
–– Uneasiness. Digital interaction with peers is on the rise when choosing to purchase
a product.
–– Urgency. “I want it fast and I want it now.” The time to make a purchase is decreasing,
with younger customers taking one-third less time than older customers to make decisions.
–– Uniqueness. Consumers now expect brands to align with their personal values
and passions.
• Today, 70% of luxury purchases are influenced by online interactions, which means
at least one digital interaction has taken place with the brand or the product before
those purchases.
–– 14% of consumers from the ages 18 to 24 complete their first luxury purchase online.
–– Digital traffic to websites of luxury brands is double the amount of store visits.
• By 2025, online and monobrand stores will become the two largest channels for luxury
sales, each accounting for 25%.
• Bain & Company believes that stores will continue to play a critical role in the luxury
market, with 75% of purchases still occurring in a physical location by 2025.
3. The Millennial State of Mind | Bain & Company, Inc. | Farfetch
Page 2
Figure 2: “Millennial” is not just an age group, it’s a state of mind that affects consumer behavior
across generations
Technology is a true enabler of change, touching all generations … … especially consumers of luxury goods
Percentage of consumers who used the Internet in 2016
(by age)
Percentage of luxury goods consumers who used the Internet in 2016
(by age)
15–25
100
26–35
100
36–45
96
46–55
90
56+
80
0
20
40
60
80
100%
15–25
76
26–35
77
36–45
73
46–55
55
56+
34
Internet users Nonusers
Notes: Millennials defined as people born from 1980–95; percentages are estimates
Sources: Expert interviews; Statista; IDC; comScore; Internet World Stats; Euromonitor
Millennials Millennials
Figure 1: The geographic breakdown of the luxury market will remain stable from 2016–25; the real shift will
be generational
Share of the global market for personal luxury goods (by geography and generation)
2016
Generation Y
27
Generation X
Baby boom
2025
40
Silent generation
Generation Z
50
20
40
60
80
100%
2016
Europe
Americas
Rest of world
Japan
11
China
30
Rest of Asia
10
2025
7
35
11
Asian consumers will continue to account for more than half of the
luxury market
Generation Y (millennials) and Generation Z will account for 45% of the
market in 2025
Note: 2016 percentages are estimates; 2025 percentages are forecasts
Source: Bain Luxury Goods Worldwide Market Study, Fall−Winter 2016
4. The Millennial State of Mind | Bain & Company, Inc. | Farfetch
Page 3
Figure 3: Digital interactions are completely changing consumers’ approach to luxury
Physical footfall
Percentage of times that a person’s first luxury purchase was made online (by age)
Percentage of luxury purchases influenced by online interactions
Industry average foot traffic vs. online traffic per year (indexed)
0
5
10
15%
18−24
14
25−34
9
35−44
8
45−54
3
55−64
2
~70%
Online traffic
Notes: Survey excludes blanks and errors; ~70% indicates purchases that occur after at least one digital interaction with the customer
Sources: Expert interviews; literature search; Bain 2016 luxury and premium apparel/accessories consumer survey
2x
Figure 4: Online and monobrand stores will be the two largest channels for luxury sales by 2025
Source: Bain Luxury Goods Worldwide Market Study, Fall−Winter 2016
2016E
30%
23%
22%
12%
8%
6%
2025F
~25%
~13%
~17%
~13%
~25%
~7%
Monobrand stores
Department stores
Specialty stores
Off-price stores
Online
Airports
Global personal luxury goods market (2016E–25F)
5. The Millennial State of Mind | Bain & Company, Inc. | Farfetch
Page 4
Figure 5: Physical stores will continue to play a key role, accounting for 75% of sales in 2025
Global personal luxury goods market
2016E
Physical
92%
Online 8%
2025F
Source: Bain Luxury Goods Worldwide Market Study, Fall−Winter 2016
Physical
~75%
Online
~25%
6. Shared Ambition,True Results
Bain & Company is the management consulting firm that the world’s business leaders come to
when they want results.
Bain advises clients on strategy, operations, technology, organization, private equity and mergers and acquisitions. We
develop practical, customized insights that clients act on and transfer skills that make change stick. Founded in 1973,
Bain has 55 offices in 36 countries, and our deep expertise and client roster cross every industry and economic sector. Our
clients have outperformed the stock market 4 to 1.
What sets us apart
We believe a consulting firm should be more than an adviser. So we put ourselves in our clients’ shoes, selling out-
comes, not projects. We align our incentives with our clients’ by linking our fees to their results and collaborate to
unlock the full potential of their business. Our Results Delivery®
process builds our clients’ capabilities, and our True
North values mean we do the right thing for our clients, people and communities—always.
About Farfetch
Farfetch is the online platform to shop the world’s greatest selection of luxury. The e-commerce platform partners
with leading luxury boutiques and brands, located from Tokyo to Toronto and from Milan to Miami. This unique business
model offers a vast range of pieces to shop, from established brands to fascinating new designers and one-of-a-kind styles.
Founded in 2008 by the Portuguese entrepreneur José Neves, Farfetch is translated in nine languages and services
customers as a website (www.farfetch.com) and on-the-go app, making it easy to shop luxury fashion. Offices are found
in 11 cities globally, and Farfetch express ships from partners to over 190 countries worldwide.
In 2015 Farfetch developed proprietary business units Farfetch Black & White and Store of the Future to provide key
technology and business solutions for brands and retailers to facilitate growth and champion innovation. The brand also
added London boutique Browns to its portfolio in 2015.
In May 2016 Farfetch secured a Series F round of investment of US $110 million, led by new investors Temasek, IDG
Capital Partners and Eurazeo with existing investor Vitruvian Partners also participating in the round. The company is
currently valued at over US $1 billion.
7. For more information, visit www.bain.com
Reporters and news media: Please direct requests to
Dan Pinkney
dan.pinkney@bain.com
646-562-8102