New eBay research has revealed that summer event guests are choosing pre-loved and affordable luxury items for their special occasions, with Spanish leatherware brand Loewe “reigning supreme”.
The study of 2,000 UK consumers conducted for the marketplace found that societal pressures to dress in something special for each event are high, with 45% of consumers admitting the expectation to do so is driving them to make a new purchase. Additionally, one in five Gen-Z and millennials spend at least £300 each per occasion.
“Shoppers are seeking versatile sought-after branded pieces for many upcoming occasions; they have value front of mind, but also want to make a statement”, explained Mari Corella, eBay’s general manager, global sneakers and luxury.
“Millennials and Gen Z in particular are leading the charge of this ‘better for less’ mindset, searching for unique, standout items to add to their collections.”
eBay has seen increased searches for a number of standout styles and items. In the lead up to summer, ‘neon bags’ increased over 50%, with lime green and red being particular favourite colours. ‘Statements bags’ searches were up 40%, as searches for Loewe increased by over 35%.
The RetailX Global Luxury 2024 Report 2024 recently profiled the Spanish leatherware and luxury brand.
Founded in 1846 in Madrid by a collective of leather workers – including one Enrique Loewe – the company quickly became a staple supplier of leather work to Spanish and wider European royalty. By the 1970s, the company had expanded into perfumes and fashion and saw a young Giorgio Armani head up design of its womenswear collection.
Acquired by LVMH Group in 1996, the company was mostly reliant on its ready-to-wear collection for the bulk of its sales. However, in 2008, new CEO Stuart Vevers reversed this, bringing the brand’s focus back on to leather goods, primarily handbags. The move cemented the company as a key player in this growing part of the luxury business and has seen it become one of the leaders in the leather goods part of the market.
Loewe has some 140 stores worldwide, concentrated mainly in Spain and Japan – with 37 and 27 locations respectively. The brand opened its first store in London in 1963 and its first New York store in the Trump Tower in 1983. It has, more recently, opened stores in Miami Beach in 2016, Wynn Hotel in Las Vegas (2018) and on Rodeo Drive in Los Angeles (2022).
As a result, revenues in 2023 hit $83.4bn with profits of $57.1bn – a marked increase on 2019’s revenues and profits of $51bn and $32.8bn respectively. These amounts are indicative of how leather goods are becoming a pivotal part of luxury growth.
As an upshot of this success, the brand has also been able to drive up awareness and sales further through a range of high-profile celebrity collaborations – most notably with designing several custom performance looks for American singer Beyoncé’s Renaissance World Tour and appointing South Korean rapper Taeyong as a brand ambassador.
Loewe topped Lyst’s Hottest Brand Index for the first time in the second quarter of 2023, a position previously held by Prada.
The Loewe profile, authored by Paul Skeldon, is one of 18 in the RetailX Global Luxury 2024 report, which also looks at the impact sustainability is having on the sector as well as consumers.
The report covers shifting consumer behaviour from social commerce to the metaverse, luxury shoppers lead the way in new ways to shop.
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