With consumers cutting back on non-essential items the expectation was to see the luxury market experiencing a decrease in sales and growth, but this has not been the case.
In fact, Starcount data has revealed brands such as Gucci (+6.2%), Louis Vuitton (+5.4%) and Balenciaga (+9.3%) have all seen considerable growth during these tough economic times for a number of reasons…
The biggest reason is the growth of younger audiences of Millennials and Gen Z, with Starcount data showing the biggest audience growth by Gen Z by a staggering 112%.
Previously the luxury market was predominantly shopped at by Baby Boomers and Gen X, probably due to more disposable income. However, due to the power of social media and younger entrepreneurship, Millennials and Gen Z have become the main consumer group of luxury goods, accounting for 72% of the global luxury market in 2022 (Bain & Co., 2022).
“Millennials and Gen Zers are buying luxury goods 3x faster and 3-5 years earlier than the older generations, with Gen Z already buying luxury items at around age 15 (Bain & Co., 2022).”
The luxury market is evidence that once you realise change within your industry, you need to react to reap the rewards. To reflect the rise in younger customers, luxury brands have launched streetwear collabs, relevant influencers and micro-influencers, sustainability, and interactive, creative campaigns.
As a result, Bain & Co., predicts the luxury goods market will grow 21% this year, to 1.4 trillion euros. Impressive stats if you ask us!
How can we help your luxury brand?
- Understand your customers through segmentation. You can identify the interests of your customers, what brands they like, which influencers they follow, where and how they spend their money and what type of lifestyle they live.
- Using this data and information you’ll be able to create personalised campaigns, partnerships and experiences for each segment group and see results such as an increase in email open rates, conversion, revenue, and engagement with your brand.
- How you use this data to resonate with your customers is key. Show them through your customer experience that you understand them and can connect with them on an emotional level. Giving you the opportunity to improve your chances of being the first brand choice, in a competitive industry.
See how Starcount helped this Leading Luxury Department Store
To find out what we can do for you, get in contact team@starcount.com
