Whilst most sectors struggled to find their feet post-pandemic, the luxury sector enjoyed considerable resilience which continued into 2023, with an estimated 8-10% upswing at a time when most consumers are in the middle of a cost-of-living crisis.
What this statistic doesn’t reveal is the variety of trends behind this market expansion. It also masks a unique set of challenges that are adding pressure to many luxury players to keep their competitive edge and agility. In fact, the headlines for 2024 for certain luxury brands don’t make for such positive reading!
Ranging from logistical friction to business model weaknesses, and from an increasing reliance on discounting, to shoppers demanding ever-more rewarding experiences, these mounting challenges are varied. Yet certain foundational principles prevail. What our own research consistently tells us is the value in adopting and reinforcing an omni-channel approach – but, as certain brands have experienced recently with the Farfetch platform, even that journey can come with pitfalls.
