Today’s InternetRetailing newsletter takes a time out from reporting the news, to focus on how the luxury industry has changed over the past 12 months, based on our research in the RetailX Luxury Sector Report 2022.
The sector has had a turbulent time across the pandemic, with revenues shrinking drastically as transport hubs were shut down for almost a year. This had a devasting effect on most of the retailers in the sector, who reply on travel for a large chunk of their revenues.
While many pivoted to ecommerce – commendably rapidly in most cases – it hasn’t been enough to stave off the dramatic fall in sales.
However, some of the super-large luxury brands had deep enough pockets to weather the storm and have come out the other side battered but undefeated. It has also left them hungry for expansion. As a result, many of these big players are snapping up the many smaller firms that have struggled.
This reshapes the industry for the decade ahead: populating it with a wide range of large players that cover multiple segments of the sector. This approach works well in luxury, as they are seen as brands and a lifestyle choice for many consumers who want to adorn themselves in all thing LVMH or Burberry, from clothes to jewellery to eyewear.
As we see in today’s selected insights from the report, the sector is slowly bouncing back, thanks to this raft of M&A activity, and is shaping up well for the future. We take a look at how the key players have performed and delve into the specifics of how LVMH and Burberryhave navigated this tricky pandemic landscape.
We also look at how luxury, fashion and consumer electronics have coped with the impact of Brexit on UK and global trade, as well as hearing how eco-conscious consumers are taking over the world (and the world of retail)… and how retailers need to sit up and take note.