This third annual State of Luxury report reveals:
- Trends measuring the pulse of the luxury business from three years of consecutive surveys among ~600 luxury insiders from the luxury goods, services/experiences sectors and companies that provide advertising, marketing, consulting and other support services to luxury companies
- How insiders feel about the state of the luxury market in general and their business, in particular
- Details about distribution challenges, Internet e-commerce strategies, social media and its surprising ineffectiveness, advertising and marketing strategies, and future trends impacting the luxury market
A feeling of confidence is buoying the spirit of luxury brands and the people who work in them and those who work alongside the luxury industry in supporting roles such as advertising and tech, according to the third annual State of Luxury survey.
This “rising tide lifts all boats” hope is propelling the luxury business forward into 2019, per the study that polled 600-plus luxury insiders.
The respondents’ optimism is palpable, including both executives who manage the companies that provide luxury goods and service experiences to luxury consumers and the businesses that provide support services to the luxury industry.
56% of Luxury Insiders Believe Business Conditions are Better Now than a Year Ago
Whereas only two years ago fewer than one-third (29 percent) of the roughly 600 industry insiders surveyed believed that business conditions in the luxury market were improved over the previous year, today a sizable majority (56 percent) believe things are better now.
Looking to the future, a majority (52 percent) of those surveyed believe business conditions will improve again next year.
Trends Impacting Luxury Business in 2019
Innovation in product and service offerings are identified by those surveyed as the trend that will be most impactful in realizing growth in luxury marketing in 2019. On the other hand, the trend giving insiders the greatest worry is political instability and macro-economic trends.
The negative impacts of these for 2019 got an early start at the close of 2018 as rumors of trade wars with U.S. trading partners are rife, sales in the once-booming China luxury market are slowing and its tourists are spending less while traveling and, most especially, the political uprising in Paris.
Luxury brands will be forced to navigate potential disruption coming at them from market turbulence caused by political upheaval and macro-economic trends, a rising wealth class that is retreating into their secure cocoons, impacts of digital technology on the sale and marketing of luxury, and the next generation of customers with growing financial resources who must be inspired to step up to true luxury instead of settling for poseurs or less privileged brands.
The primary battles lines for the coming year will be competitors struggling for a shrinking share of consumer spending, even while the ranks of the wealthy rise.
Luxury brands will try to take charge of the digital revolution, which is a challenge they were slow to accept. And they will work aggressively to find traction with the younger digitally-powered consumers that have come with it.
Luxury brands are going to feel the conflicting push-pull from their traditional wealthy and older customers who want one type of luxury and their younger, less financially endowed customers and potential customers who want a totally different kind of luxury. Luxury’s present fortunes hang on the one, and their future depends on the other.
About the Report
The report provides the results of a survey among 600-plus luxury industry insiders compared with those from the past two years. It reveals the trends year-to-year and provides actionable research takeaways to power competitive and marketing strategies for 2019 and beyond.
This year’s survey was further enhanced by additional questions surrounding the luxury insiders’ marketing and advertising perspectives, with particular emphasis on digital and social media marketing.
Luxury Insiders Surveyed
A Closer Look at the Luxury Goods Marketers
- Luxury Goods Categories
- Luxury Goods Distribution Channels
- Distribution Challenges
- Opportunities in Distribution
- Internet E-commerce for Luxury Goods Marketers
- Mobile-Enabled Web Site
A Closer Look at the Luxury Experiential Marketers
- Luxury Services & Experiences Categories
- Experiential Marketers Also Sell Products
All Luxury Goods & Experiential/Services Marketers
- Luxury Markets Competed In
- Years in Business and Competing in the Luxury Market
- Years Launched in the Luxury Market
Advertising, Marketing and Innovation Strategies
- Spending on Marketing & Advertising
- Trends in Spending by Media
- Other Advertising Strategies Used
- Social Media Channels
- Most Important Social Media Platform
- Biggest Challenges to Growth
- Responding to "Disruption"
- Innovation Strategies
Key Trends Impacting the Luxury Market
- Trend Shift
Business Conditions in the Luxury Industry
- Luxury Market Overall Last Year to This
- Luxury Market Overall in the Next Twelve Months
- Companies over the Past Twelve Months
- Companies over the Next Twelve Months
The Future of Luxury
- Challenges and Opportunities
- The Rising Tide of Affluence Can Raise All Boats
- Adapting to the Digital Revolution in a Human Way
- Next-Generation Luxury Consumers Redefining Luxury's What and How
- Proactive versus Reactive Response to Disruption