A fascinating report based on research with a wide cross section of the fashion and luxury sector on how they are doing business and what they are forecasting for the sector’s future. Even through the depths of the global recession, the luxury sector appeared to go from strength to strength, invisible from the plight of the every day man. But then Burberry’s profit warn
ing last September and not-so-growth reports from China meant that this growth slowed.
The report is actually more positive than I would have imagined. Respondents generally expected profits to continue to grow (25%), don’t really expect to be ‘out of the recession’ by 2014 but do expect to see continued growth until then and beyond.
Even though the market is expected to continue to grow from 4% to 6% 2013-2015 (£192.3bn-£200.3bn), this will continue to come from international customers (tourists to London, and still growth of British brands into the Far East) and from multi-channel retailing, especially m-commerce (as retailers asses the cost of bricks and mortar).
The luxury sector will continue to grow as Mark Henderson, Chairman of the Luxury Quarter believes ‘the trend at the moment is towards craftsmanship and individualism, which (both) support the luxury sector values.”
I was excited to read that brands’ biggest opportunity lies in social networks “because they have a stronger relationship with the end consumer, its about how you leverage social media and create a community” says Martin Newman, CEO of Practicology.
Whilst all brands have a website, and increasingly being e-and m-commerce, they are quickly getting on board with facebook and twitter as well as the pinterest and google+. Particular challenges like in the 360 customer experience and especially working in mobile and the retail store environment.
Social media has become an increasingly important way to create brand engagement through social communities with improved ROI (return on investment) and ROE (return on engagement) in sales, loyalty and advocacy. That’s what I do and that’s what I find most interesting. A sector that used to be ‘behind’ some sectors in terms of marketing sophistication, has now leapt to the forefront and leading the world – fabulous stuff!