Millennial's, China, Sustainability: New Luxury Figures

Millennial's, China, Sustainability: New Luxury Figures


What dynamics are the luxury of tomorrow? In the sixth edition of its True Luxury Global Consumer Insight , the firm Boston Consulting Group - in collaboration with the Altagamma Foundation - decrypts the major levers of consumption of the sector.

BCG report paints a glimpse of burgeoning luxury goods, whose 4.6% overall growth expected over the next six years could lift the sector's weight in all market segments to 1.3 trillion euros . An upward trend, driven by the Millennials' appetite for high-end goods: in 2025, this category of consumers could thus represent half of luxury buyers. Other strong profiles, Chinese consumers who, over the same period, could represent up to 40% of the market and generate 75% of its growth.

If the study details some peculiarities of these profiles, a red thread persists, that of the connected user : 80% of luxury consumers - 95% in China - interact on social networks, especially with brands and influencers.

The rise of the Second Hand and Sustainability

We talk about it in our White Paper : the second hand - which includes processes such as the resale of used products or the offprice - has the wind in its sails and is making a progressive place in the world of luxury. According to the BCG study, 45% of premium consumers contribute to the second-hand market , which could well record growth of + 12% by 2021 to reach € 31 billion. Boosted by more intuitive platforms and more transparency in authentication - especially via blockchain as evidenced by the Aura project of LVMH -, the second hand now exceeds the trend to establish itself as a solid alternative consumption mode.

In addition to the economic aspect, the second hand also carries sustainable values ​​towhich buyers are increasingly sensitive. The report highlights the fact that more than 60% of luxury consumers say they "prefer a brand that cares about its social and environmental impact", which is ten points more than in 2013. 56% of luxury consumers also indicate that they want to know more about Corporate Social and Environmental Responsibility policy . "The youngest consumers are primarily concerned with environmental (37%), animal (27%) and ethical (21%) issues," explains Olivier Abtan, Associate Director of BCG.

Collaborations: in the name of exclusivity

According to the report, the other lever on which the luxury second-hand market relies is the search for the exception through pieces of old, rare and / or vintage collections. It is this same philosophy of the Unique that could support the particular appetite for capsule collections conducted jointly by Maisons and streetwear brands , like Supreme and Jean Paul Gaultier or Kith and Versace , in the movement of the arrival of Virgil Abloh - founder of the label Off / White - at the head of the creations Man of Louis Vuitton.

Luxury pieces, casualwear - which attracts 74% of respondents - and sportswear are now mixed in favor of a style reflecting the singularity of the individual and his personality . 46% of consumers surveyed said they had "replaced part of their spending on luxury goods with more luxury products niches or sportswear" ...

To extract these dynamics, BCG relied on a panel of 12,000 consumers - declaring an average expenditure of 39,000 euros per annum on the Luxury sector, all categories combined - across Germany, Brazil, China and Korea. South, the United States, France, Italy, Japan, the United Kingdom and Russia, completed for the first time by insights from India.

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