Luxury driven by menswear, Africa and customized web content

By

Dominique Muret

Published
Mar 23, 2015

How will luxury retail change in coming years? According to a report focused luxury retail trends by LuxHub, a company owned by Havas, trends over the next three to five years will be driven by the digital channel, Africa and the menswear market.

The menswear market is showing strong growth, +150% compared to women's fashion. In the segment, men over 35 are dominant in terms of average expenditures. However, "it is important to know that men still prefer to be targeted in non-fashion contexts," according to Isabelle Harvie-Watt, global CEO LuxHub.

Moreover, it’s the millennial generation, those born between 1982 and 2002 who grew up with the internet that will dictate trends through "its modern aesthetic sense and digital knowledge," according to the study. 

The digital channel will continue to be more important in luxury sales in "driving research and stocking up on favorite products." 

"The rapid rise of Instagram, live streaming, and behind-the-scenes footage will leave consumers feeling like they’ve already experienced everything. Brands are now challenged with creating truly personal, fresh, and meaningful experiences," the report says. 

According to LuxHub, "Luxury brands will increasingly become media channels, creating content that is far richer than today’s aspirational blogs, videos and magazines." 

Conversely, traditional media will turn into the new digital storefront, allowing customers to buy consumer-products straight off their editorial pages. 

Brick-and-mortar stores will also evolve, offering customers "an ever more customized experience." 

Geographically, the study confirms the importance of tourism for European luxury retail, including visitors from Russia, China, the Middle East and the US. "Tourists purportedly account for 55% of luxury sales in the UK, 60% France and 50% in Italy," according to the report. 

Given the slowdown in Russia and China, LuxHub has emphasizes the importance of Africa, destined to quickly become "an alternative." It is significant that Ermenegildo Zegna, MC and Hugo Boss have recently opened stores in Lagos, Nigeria, "the new luxury hotspot," while online shopping sites are now exporting products to Africa and investing in marketing in the region.

Finally, in the coming years, the luxury market will clearly divided between two different positions, that of affordable luxury and that of Ultra-Luxe, forcing brands to be more consistent, whereas until now they have tended to cover a wide range of prices.