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1、 499June 2023RXSLXEU23RPEurope LuxuryRetailXIn partnership with:20232|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|INTRODUCTIONUnlike with many sectors,the pandemic didnt boost online sales in the European luxury sector.In fact,it took until 2022 fo

2、r the sector to claw its way back to revenues close to its 2019 high.However,the sector has since managed embraced technology and is becoming an outlier for the role of tech in omnichannel,cross-border retail.Heres what we foundKEY FINDINGS The European fashion sector was worth 83.9bn in 2022,up sig

3、nificantly on 2021s 79.4bn and slowly getting back on track to where it was pre-pandemic.The European luxury sector is still highly reliant on physical retail,with as much as 80%of 2022 sales taking place instore.This belies the role that online and mobile are playing in the shopping journey.Accordi

4、ng to the RetailX consumer survey,shoppers are equally browsing online and instore(53.96%and 54.47%respectively),with 38.26%shopping on mobile devices and 11%using tablets.Recovery in 2023 has been hampered by high inflation in Europe.This impacts domestic luxury sales and is a drag on sales in Chin

5、a and the US.Inflation is affecting the behaviour of domestic consumers.Research by RetailX finds that 55.8%of Europes shoppers see discounts and reduced price as very important when shopping luxury online.IntroductionContentsMarket context 03Consumer behaviour 05Consumer channels 08Consumers and th

6、e metaverse 09Sustainability 11Partner perspective 14The Largest 50 15PROFILE FarFetch 18PROFILE Fendi 19PROFILE Lancme 20PROFILE Louis Vuitton 22PROFILE Pandora 24PROFILE Ray-Ban 26PROFILE Tommy Hilfiger 28PROFILE TAG Heuer 30PROFILE Vivienne Westwood 31The road ahead 32Figures 36End matter 37Knowl

7、edge partners 38Most luxury ecommerce shoppers in Europe are buying fashion apparel and accessories,with 62%buying one or multiple items in 2022.Cosmetics and beauty is shopped by 51%,flowers and gifts by 52%.Consumer survey data shows that 45.6%of European consumers are already familiar with the me

8、taverse,while 24%use it several times a year.Those who are using the metaverse for shopping tend to be in the lower-income and middle-income brackets.While at odds with the profile of typical luxury shopper,this does point to the metaverse being the preserve of the young.RetailXs consumer survey fin

9、ds that 77%of shoppers in Europe are interested in buying sustainable luxury products,with 51%of them willing to pay up to 10%extra for them.Data also shows that 54%are interested in purchasing second-hand luxury items,with 47.6%of these shoppers already seeing as much as half of their luxury purcha

10、ses in 2022 being pre-loved.All but five of the Largest 50 luxury brands and retailers in Europe by traffic are based within the continent,with none lying outside Europe or the US.Those brands winning consumer favour in Europe are focussed on apparel and accessories,with leaders Tommy Hilfiger,Louis

11、 Vuitton and Ray-Ban all appearing in the Top 5 most frequently purchased luxury brands in the region.Cosmetics brand Lancme and affordable luxury jewellery brand Pandora are also top sellers in the region.3|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2

12、023|MARKET CONTEXTThe European luxury sector took quite a hit during the pandemic and,while there has been significant recovery since,the market still finds itself shy of where it was in 2019.Pre-pandemic,the luxury sector worldwide saw strong growth,especially in Asia,with Europe managing to match

13、the rate of growth,if not the actual revenues,seen across the Far East.However,the pandemic hit the European luxury market hard due to a downturn in spending seen as a result of restricted travel.Additionally,the European region has been hit harder by inflation and cost-of-living price rises.Inflati

14、on has proven to be a particular problem for this sector,dampening spending from the domestic European market so that sales have remained largely flat post-pandemic.Spending from overseas shoppers has also been impacted.Traditionally,luxury goods have been anything up to 50%cheaper to buy in Europe

15、than in mainland China due to a strong dollar and large markups to cover import duties and taxes keeping prices of European luxury artificially high outside Europe.This price difference has been a key driver for tourist luxury spend.Market contextAlthough luxury sales in Europe are struggling to rec

16、over from the pandemic,embracing mobile and relocating may yet change the sectors fortunesPost-pandemic,European luxury brands are establishing presence in Asia and,to a lesser extent,the US,to try and capitalise on local demand while sidestepping currency and inflation issues.Sales in Eastern Europ

17、e have been hit more directly by the fallout from Russias invasion of Ukraine.Waves of sanctions have cut off lucrative sales in Russia itself,while the proximity to hostilities has affected the cost of living and luxury spending within those countries neighbouring Ukraine and Russia.RXSLXEU23RP-1-v

18、3Annual revenue for the Luxury market(bn),Europe,2018-22Source:Statista Market InsightsRetailX 202331332831331717181620182019202020212022020406080Prestige cosmetics&fragrancesLuxury watches&jewelryLuxury leather goodsLuxury fashionLuxury eyewear78.284.970.079.483.919/06/2023,13:53RXSLXEU23RP-3-v2.ht

19、mlfile:/C:/Users/L-Emm/Downloads/RXSLXEU23RP-3-v2.html1/14|RetailX|June 2023RXSLXEU23RP 2023 CHANNELS AND DEVICESThe reliance on tourists is clearly demonstrated by the reliance on physical retail in the European luxury sector,with store sales still accounting for 81%of all luxury shopping in the re

20、gion in 2022.While this reliance on stores reduced year-on-year across the pandemic falling from just 11%of sales taking place online in 2019 to 19%in 2022 stores are still the place where luxury buying occurs.The stores role in luxury retail is two-fold.First,it is driving sales at airports and oth

21、er travel hubs,where travellers are shopping European luxury to take advantage of foreign exchange benefits wherever possible for personal use as well as for gifts.Secondly,stores play a greater role in the theatre associated with the luxury shopping experience,with consumers wanting to have an inst

22、ore experience that goes beyond just looking,feeling or trying on goods and encompasses a more personalised shopping model,often in a luxurious environment.Online has a growing role to play,however.As younger,digital native shoppers get older,so they are shopping for luxury and looking to do so onli

23、ne,ideally via their smartphone.Of the growing number of digital luxury purchases being made,almost half are now coming from these devices,with younger,high-end shoppers increasingly using mobile as part of their research,inspiration and purchase journey.The rise in affordable luxury is also seeing

24、these shoppers not only purchase more in the sector but also using their devices to do so.For luxury retailers and brands,this means that attention to online and app user experience is now increasingly essential and will become more central going forwards.RXSLXEU23RP-4-v5Revenue by channel for Luxur

25、y shopping,Europe,2018-22Source:Statista Market InsightsRetailX 202390%89%85%83%81%17%19%20182019202020212022050100OnlineO?ine100.0100.0100.0100.0100.0RXSLXEU23RP-5-v4Revenue by device for Luxury shopping,Europe,2018-22Source:Statista Market InsightsRetailX 202361%59%57%56%54%39%41%43%44%46%20182019

26、202020212022050100MobileDesktop100.0100.0100.0100.0100.0SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|MARKET CONTEXT5|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|CONSUMER BEHAVIOUREUROPEAN ONLINE SHOPPING BEHAVIOURConsumer research

27、conducted across Europe by RetailX finds that Europeans are not only becoming increasingly avid users of ecommerce,they are also increasing their overall spend.Data shows that 87%of them spend between 12 and 600 a month online,with 49%spending up to 120 each month via ecommerce.Shoppers who spend sm

28、aller amounts online are driven primarily by fast delivery and convenience.Many are also encouraged online by more competitive pricing.These are not the customers of primary interest to the luxury sector.Rather,it is the 11%who spend upwards of 500 each month that are the most significant to luxury

29、brands.These consumers are the natural target of those selling high-value goods.While this cohort may not be of particular importance to mass-market retailers,they are crucial to luxury retailers,indicative as they are of how a growing number of shoppers for luxury goods are willing to purchase onli

30、ne.It is also worth considering the other 12%who spend between 300 and 600.These customers represent the target audience for affordable luxury brands and Consumer behaviourEuropes luxury consumers are increasingly looking online to bag bargains in a trend driven by an ever-younger demographic of sho

31、pperretailers looking to offer the quality of luxury but at a more affordable price point.This not only opens up this 12%mid-tier spending segment to luxury brands,but also enables them to prime younger shoppers for more lucrative luxury spending as these consumers grow older(and potentially richer)

32、.RXSLXEU23RP-CS-16-v4Monthly online shopping expense,Europe,2023Based on 3210 individuals in Europe,aged 16-83,Mar 2023.Question:In the last 12 months,how much have you spent on averageper month on online shopping?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetai

33、lX 20232%49%26%12%7%4%More than 1200600-1200300-600120-30012-120Less than 126|RetailX|June 2023RXSLXEU23RP 2023 DRIVERS OF ONLINE LUXURYDespite luxury retail being predicated on high-value goods,price is increasingly important to Europes luxury shoppers.Consumer research by RetailX shows that more t

34、han 55.8%see discounts and reduced price as very important when looking to shop luxury online.When added to those who see it as somewhat important,this rises to more than 83%the vast majority of online luxury shoppers.While the practical appeal of ecommerce speedy delivery,availability,easy returns

35、and reliability applies equally to luxury shopping,this focus on lower prices and discounts suggests that Europes luxury shoppers are either turning to ecommerce as a means of finding luxury items for less,or that the shift to online-first luxury is itself driving prices down.Both seem to be true.Yo

36、unger,online-first shoppers are looking to luxury as an alternative to fast fashion and are prepared to spend more on a single,higher quality piece.Since they are on a budget,they are also looking to maximise their luxury spend.Other demographics,too,are looking to shop luxury but at a bargain price

37、,often opting to buy last seasons luxury at a discount rather than the newest fashion.The role of online in luxury ably facilitates this and online sites such as Secret Sales have emerged to service this need.The move towards more affordable luxury has driven growth additional in second-hand luxury,

38、again being serviced by a range of sites such as Vintd and Vestiaire Collective.This is reflected in the level of spending the RetailX survey uncovered.Typical expense per luxury item bought online in Europe lies in the 100 to 500 range,with 45%sitting in this spending bracket.Further analysis shows

39、 that 83%lie in the less than 500 range,showing that online luxury spending is no longer just about very high-value items.That said,12%of shoppers do spend between 500 and 1,000 per item when shopping luxury,showing that there is a still a dedicated set of luxury shoppers who are shopping at the hig

40、h end and generating more than enough revenue to sustain established brands and retailers.SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|CONSUMER BEHAVIOUR7|RetailX|June 2023RXSLXEU23RP 2023 LUXURY SEGMENT SPENDWhen it comes to what these shoppers are buying,the bulk of European luxur

41、y ecommerce shoppers are shopping for fashion apparel and accessories,with 62%of them buying one or multiple items in the 2022.Cosmetics and beauty is bought by 51%,with flowers and gifts attracting 52%.While luxury cosmetics and beauty have always been a strong segment of both the luxury sector and

42、 the fashion market,the rise of luxury apparel is further evidence that consumers are looking to luxury and affordable luxury as a replacement for,or even an antidote to,fast fashion.Younger shoppers are regarding luxury and its spin-off sector,affordable luxury as a source of high-quality but also

43、more one-off items that stand apart from the widespread high street look.They are also attracted to the idea of owning something less ephemeral that has built-in sustainability credentials as well as a resale value.Add to this a growing sense that,showing off and protecting the environment aside,buy

44、ing luxury is a well-deserved treat.This comes from the growing consumer desire for experiences and novelty in all that they do.While luxury brands and retailers pride themselves on their products,they also come with a theatrical instore experience or a dramatic unboxing online and a whole interacti

45、on that is memorable and,perhaps most importantly,Instagram-able.This has given rise,in part,to the birth of the affordable luxury sub-sector of the market,with brands and sellers springing up that can offer luxury items end-of-line new or second-hand at a more affordable price.It has also led other

46、 brands,for example,Apple,to look at how to add touches of luxury personalisation to its products,with many Apple accessories now coming with free engraving.Such moves see the mores of the luxury sector spreading back along the retail chain and bringing many of the core unique selling points of luxu

47、ry to a much wider audience.LUXURY FOOD AND DRINKInterestingly,luxury groceries are shopped by 45%and confectionery by 40%of Europes luxury shoppers(Figure 9).Global demand for luxury food has been rising since 2020,with the pandemic and lockdowns seeing more people looking to create luxury and dini

48、ng experiences within their homes.SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|CONSUMER BEHAVIOURThis trend has continued post-pandemic,with sales of luxury meat such as Wagyu and Kobe beef,along with exotic fruit and luxury desserts,all increasing among more affluent shoppers.While

49、 this has been particularly notable in Mexico and Canada,in Europe,Spain,the UK and Poland are all keen importers of luxury foods1.The prevalence of online marketplaces and airfreight have facilitated the growth of this segment within the luxury market,while the reopening of travel has seen more peo

50、ple travel,try new food experiences,then look to recreate them once back at home.1 https:/ 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|CONSUMER CHANNELSThe European luxury consumer is an omnichannel shopper.According to the RetailX consumer survey,shoppers are

51、equally shopping online and instore(53.96%and 54.47%respectively),with 38.26%shopping on mobile devices and 11%using tablets.Luxury consumers are keen users of tech itself often seen as a luxury item which is partly responsible for the high showing of digital in the survey.However,this split offers

52、an interesting insight into how shoppers use available channels to buy luxury and points to there being a complex path to purchase for many,often involving multiple channels.This belies some more subtle changes that have occurred post-pandemic.While there is still a propensity to shop online,digital

53、 channels have become part of a complex path to purchase that takes in online research,visits to stores,social media and,as we shall see overleaf,even the metaverse.This has been driven by customer behaviour in the first instance but has been accelerated by the luxury brands and retailers themselves

54、,many of which invested heavily in digital during the pandemic.As a result,these businesses have become leaders Consumer channelsEuropes luxury shoppers are increasingly omnichannel,reflecting their love of instore experience along with access to high-tech gadgetsin the field of connected,hybrid and

55、 omnichannel retailing.This consumer love of tech along with retailers that offer a joined-up experience can act as an exemplar to the rest of retail.YOUNG AND MOBILE Young people are increasingly using mobile as a means to seek inspiration and to track down rare goods and bargains.The digital-first

56、 generations between the ages of 18 and 39 are reliant on digital tech for every facet of their lives and it increasing will become a transactional,as well as inspirational,channel for this age group as they get older.Meeting the demands of this mobile consumer base is important to the luxury sector

57、 as these young shoppers,those who are getting a taste for luxury and affordable luxury items today,will make up the consumer base for these brands tomorrow.INCREASINGLY SOCIALThe growing propensity for luxury shoppers to use mobile over desktop where they are buying digitally also points to the wid

58、er use of mobile in the shopping journey.Social media,which is predominantly a mobile pursuit among consumers,especially digital natives,is playing a growing role in driving the growth of luxury.Luxury fashion,accessories and cosmetics are all aspirational purchases,and nothing drives aspiration mor

59、e effectively than social media influencers and social marketing.A look at the leading brands on Instagram in 2022 shows that they are dominated by fashion sellers with Zara out in front,but with luxury brands Gucci,Dior,Louis Vuitton and Prada making up nearly half of the leaders in this category.9

60、|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPORT 2023|METAVERSELuxury brands have become among the first to explore the use of the putative metaverse to engage consumers and,in many cases,sell digital and real world goods.The timing of this seems prescient,since consumer data shows a growin

61、g interest in this new way to interact with the internet.Firstly,what do we mean by the metaverse?The official definition is that it is a decentralised 3D version of the web,facilitated by the use of virtual reality(VR)headsets and augmented reality(AR)screens.In reality,though,it is currently embra

62、cing a host of technologies that aim to create virtual worlds to create a simulacrum of the real world.For luxury retailers and brands that have made forays into the metaverse Louis Vuitton,Burberry,Gucci,Dolce&Gabbana and Tommy Hilfiger to name just a few it has allowed them to create virtual fashi

63、on shows and events in order to sell digital and real world goods.These digital goods are typically fashion items for users virtual world avatars and are often unique,non-fungible tokens(NFTs)that can be swapped and traded.Many also offer,for a single price,an NFT digital version alongside a real-wo

64、rld version of the luxury item being purchased.Consumers and the metaverseAs European luxury producers lead the way into the metaverse,their highly tech-savvy customers are starting to take noteRXSLXEU23RP-CS-10-v3Familiarity with the metaverse,Europe,2023Based on 3210 individuals in Europe,aged 16-

65、83,Mar 2023.Question:Are you familiar with the Metaverse?.Results havebeen strati?ed by age and genderSource:RetailX ConsumerObservatoryRetailX 2023No54.6%Yes45.6%RXSLXEU23RP-CS-11-v3Frequency of metaverse usage for retail purposes,Europe,2023Based on 1773 individuals in Europe,aged 16-80,Mar 2023.Q

66、uestion:Do you use the Metaverse to buy products or interact withbrands whose products you might buy?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 20234%11%9%5%23%42%5%Not sureNeverLess than once a yearAt least once a yearAt least several times a yearMore t

67、han once a monthMore than once a weekAside from retail,the main purpose of the metaverse for luxury brands has been to raise profile and add a new level of engagement with younger consumers,grooming them as the next wave of luxury shoppers.Consumers seem open to this,with data showing that 45.6%of E

68、uropean consumers are already familiar with the metaverse,while 24%have used it at least a few times.As with mobile and online technology,luxury users are typically ahead of the curve.The 15%who use it more than once a week are likely to contain a significant number of younger luxury shoppers,which

69、is why so many luxury brands continue to test the metaverse waters.WHO SHOPS IN THE METAVERSE?Interestingly,those who are using the metaverse for retail tend to be those in the lower-income and middle-income brackets(see page 10).While at odds 10|RetailX|June 2023RXSLXEU23RP 2023 with the profile of

70、 typical luxury shoppers,this does point to the metaverse being the preserve of the young.Indeed,we can see that it is Millennials and an increasing number of Gen Z users those aged between 11 and 42 who are more regular uses of the metaverse for retail purposes.Typically,those aged between 42 and 5

71、8 are less likely to regularly use the metaverse for retail.However,the proportion of users in this older age group is not insignificant,showing how the metaverse is attracting quite a lot of retail attention.For luxury retailers,this shows that a strategy to target a younger audience through new ch

72、annels such as the metaverse is the right one.However,the goods they are selling need to be priced much more towards the affordable luxury end of the market.This along with the very use of the metaverse and its targeting of younger shoppers puts the luxury sector in more direct competition with the

73、higher and mid-market parts of the mainstream fashion sector,which are also keen users of the metaverse.While the metaverse is opening up new ways for the luxury sector to engage with a younger audience,it is also forcing it in the short-term to be more competitive in the lower echelons of the affor

74、dable luxury market.The caveat is that by the end of the decade,the more affluent of these younger shoppers may well be using the metaverse to shop higher-end proper luxury,making todays forays into the metaverse a canny investment in the future of their businesses.EUROPEAN LUXURY REPORT 2023|METAVE

75、RSE16/06/2023,12:58RXSLXEU23RP-CS-GEN-10-v4(1).htmlfile:/C:/Users/L-Emm/Downloads/RXSLXEU23RP-CS-GEN-10-v4(1).html1/1RXSLXEU23RP-CS-GEN-10-v4Frequency of metaverse usage for retail purposes by generation,Europe,2023Based on 1773 individuals in Europe,aged 16-80,Mar 2023.Question:Do you use the Metav

76、erse to buy products or interact withbrands whose products you might buy?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 202312%17%22%12%18%11%13%8%6%7%6%6%37%39%55%76%8%7%Boomers(ages 59-77)Generation X(ages 43-58)Millennials(ages 27-42)Generation Z(ages 11-

77、26)Not sureNeverLess than once a yearAt least once a yearAt least several times a yearMore than once a monthMore than once a week16/06/2023,12:59RXSLXEU23RP-CS-INC-42-v4.htmlfile:/C:/Users/L-Emm/Downloads/RXSLXEU23RP-CS-INC-42-v4.html1/1RXSLXEU23RP-CS-INC-42-v4Frequency of metaverse usage for retail

78、 purposes by income,Europe,2023Based on 1773 individuals in Europe,aged 16-80,Mar 2023.Question:Do you use the Metaverse to buy products or interact withbrands whose products you might buy?.Results have been strati?ed by age and genderSource:RetailX Consumer ObservatoryRetailX 20237%10%11%11%16%11%1

79、0%6%15%8%7%6%56%5%56%59%17%41%7%13%Prefer not to sayHigherMiddleLowerNot sureNeverLess than once a yearAt least once a yearAt least several times a yearMore than once a monthMore than once a week11|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPORT 2023|SUSTAINABILITYConsumers in Europe have b

80、een slowly turning to ethical and sustainable purchases across retai.For the luxury sector in particular,this has generated something of an upswing in sales,especially among younger shoppers.Those under 40,for example,are turning away from fast fashion and targeting one-off luxury purchases as an in

81、vestment in a piece of clothing that has longevity,as well as being an antidote to the ubiquity of high street fashion.The pandemic also gave shoppers pause to consider their environmental impact.Together,these factors resulted in a burgeoning interest in sustainability among Europes shoppers across

82、 2020 and 2021.While cost-of-living pressures have eroded this strong pandemic interest in more sustainable living,data from RetailXs consumer survey finds that 77%of shoppers in Europe are interested in buying sustainable luxury products,with 51%of them willing to pay up to 10%extra for luxury item

83、s if they were sustainably made and/or shipped.A not insignificant 8%would even be willing pay up to 25%extra.Europes luxury shoppers are,on the whole,drawn to purchasing locally made luxury products the preference for 61%of the sample.This is relatively easy in the European luxury sector,with 17 of

84、 the top 20 luxury brands globally being based Sustainability Sustainability is increasingly driving the purchase choices of consumers and,for luxury,is creating new business models12|RetailX|June 2023RXSLXEU23RP 2023 in Europe1.This helps assure shoppers for whom more ethical production practices a

85、re important.It also helps reduce shipping distances.SECOND-HAND AND PRE-LOVED LUXURYThis sustainability play among consumers is not limited just to looking at paying more for sustainable goods.There is also a groundswell of interest in looking at purchasing second-hand and refurbished goods,a deman

86、d that is in turn driving changes in shopping habits.Second-hand purchases are garnering significant interest,reflecting both the longevity of luxury items,as well as the inherent resale value that these garments offer.European consumer data shows that 54%are interested in purchasing second-hand lux

87、ury items,with 47.6%of these shoppers already seeing as much as half of their luxury purchases in 2022 made up of second-hand luxury items.Many consumers see second-hand luxury as an affordable and sustainable way to shop for fashion in particular,giving them high-quality goods at an affordable pric

88、e,while also offering something unique and often vintage.For those buying new luxury,the allure of its eventual resale value on the second-hand market is also proving attractive.This surge in second-hand purchases of luxury,while significant,is not the only change to the retail model in the sector.R

89、epair of luxury items,as well as rental of goods,are also developing into significant business channels in the European luxury market.Already,64%of European consumers say that they are interested in luxury repair schemes,with many seeing this as a means to extend the life of their items and thus pro

90、tecting their initial investment in the goods as well as using such schemes to repair second-hand goods,either on purchase or as part of resale.Luxury rental schemes are also coming into their own,with 27%of European users looking to enjoy luxury items when they are required for a fee,rather than to

91、 own them outright.This is segment of the market is more niche but offers a significant slice of users nonetheless.EUROPEAN LUXURY REPORT 2023|SUSTAINABILITYWhile it is more often found in the accessories side of the luxury market,luxury clothing and apparel is also starting to leverage this route t

92、o market.1 https:/ 2023RXSLXEU23RP 2023 14|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|PARTNER PERSPECTIVECMO,at TealiumHeidi BullockLessons learned from some of retails most iconic brandsThe EU luxury market has always been a strong sector,with a

93、dedicated cohort of consumers from within Europe alongside a burgeoning number of shoppers from across the world all keen to express themselves through the kudos of owning some of fashions most iconic brands.The pandemic,however,hit the sector hard.Travel disruption and economic uncertainty required

94、 these European brands,reliant on physical retail,to rapidly realign themselves digitally.This switch was as impressive as it was swift and,as the world has reopened post-pandemic,these brands find themselves at the forefront of omnichannel retail,elegantly combining their new-found cutting-edge dig

95、ital offerings with their traditional,opulent instore experience.The result is a sector that is now a leader in using tech and style to deliver the ultimate customer experience and one that retailers in all sectors can learn some valuable lessons from.Underpinning this,of course,are data and persona

96、lisation.These work hand-in-hand in luxury Tealium provides the industry-standard platform for businesses aiming to unleash innovation with a real-time,universal data foundation.More than 1,000 companies trust Tealium to orchestrate their customer data.These include Dominos,Gap,IBM,Molekule,Epson Am

97、erica,Cambia Health,Orange,TUI,Rakuten,Sportsbet and Network Expert insightbrands to deliver the ultimate customer experience,regardless of the channel used.They are the bedrock of everything retailers do,from what to display on their site and the offers they send via email,to the way the store is l

98、aid out and even what they look like in the metaverse.So,what does the process of collecting and leveraging data to deliver the kind of experience that luxury shoppers demand look like?There are three main steps:1.The process starts with understanding customer preferences.Collecting and understandin

99、g the way in which luxury shoppers shop is vital to shape the strategic approach to omnichannel retail.It is also,with todays near real-time,AI-driven data analytics,key to a more tactical approach to each consumers shopping habits,allowing the retailer to react to each consumer regardless of how th

100、ey choose to interact with the brand.2.This strategic and tactical understanding of the customer can be leveraged to create personalisation for the consumer at scale.Collecting and collating all the data across multiple channels and interactions is just the start.Understanding what that data tells y

101、ou and then acting on it are the key considerations for retailers.From this flows,the marketing outreach,the offers,the curation and the feel-good customer service all on the right channel at the right moment make the customer feel that your brand is talking just to them.And of course you are,but at

102、 huge scale.To do this relies on high-powered data management and analysis tools,machine learning algorithms and AI.3.Personalisation is just the start,however.From this personal interaction stems a customer journey that needs to continue this personalisation,making for an optimised interaction at a

103、ll points along the way.This needs to extend the reach of the customer data and its management to also create a seamless customer journey that is intuitive,efficient and engaging.Here,customer data needs to be combined with the insights the brand has into what happens at each customer touchpoint,squ

104、aring that with the individuals data to build a picture not just of the customers preferences and more,but also how they shop in an omnichannel world.Pulling all this together,through the gathering and proper understanding of the data any omnichannel brand or retailer has of its customers,is already

105、 starting to serve luxury retailers in Europe well and has been one of the key drivers for the sectors post-pandemic growth spurt.Lessons learned here are applicable across the retail world and are vital for the changing market that we find ourselves in.It is time to leverage data and the specialist

106、s at Tealium are here to help you make it happen for you.15|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPORT 2023|LARGEST 50All but five of the Largest 50 luxury brands and retailers in Europe by traffic are based within the continent,with none lying outside Europe or the US and many of thes

107、e US companies having significantly sized operations and regional HQs in Europe.This localisation of the sector is in large part down to history,with luxury brands having long been established in what were once the great courts of Europe in France,Italy,Spain and the UK.This has translated into thes

108、e European countries being home to some of the best-known brands in fashion,as well as luxury.Switzerland has cemented its place in the luxury watch and jewellery segment of the market,thanks to the country having a history of watch-making and clock-making dating back several centuries.SEGMENTS OF T

109、HE MARKETThe bulk of the brands in the list are sellers of fashion apparel and accessories,the two dominant segments of the luxury market.Together,these account for around 70%of total luxury goods sales by revenue,a similar proportion as seen in the mainstream fashion sector in Europe1.Apparel is dr

110、iven by fashion,with a growing number of consumers now turning away from fast fashion Largest 50The European luxury industry is highly localised,with world-renowned brands dominating the Largest 50COMPANY NAMEHQWEB TRAFFICSECTORFARFETCHUNITED KINGDOM3,920,000,000FASHION APPAREL OR ACCESSORIES SHOPPA

111、NDORA(JEWELLERY)DENMARK2,180,000,000JEWELLERLYSTUNITED KINGDOM2,090,000,000FASHION APPAREL OR ACCESSORIES SHOPVESTIAIRE COLLECTIVEFRANCE2,060,000,000FASHION APPAREL OR ACCESSORIES SHOPTOMMY HILFIGERNETHERLANDS1,930,000,000FASHION APPAREL OR ACCESSORIES SHOPMYTHERESAGERMANY1,320,000,000FASHION APPARE

112、L OR ACCESSORIES SHOPLOUIS VUITTONFRANCE1,180,000,000FASHION APPAREL OR ACCESSORIES SHOPHUGO BOSSGERMANY1,040,000,000FASHION APPAREL OR ACCESSORIES SHOPGUCCIITALY9,600,369FASHION APPAREL OR ACCESSORIES SHOPDIORFRANCE9,358,866FASHION APPAREL OR ACCESSORIES SHOPLACOSTEFRANCE8,764,797FASHION APPAREL OR

113、 ACCESSORIES SHOPRALPH LAURENUNITED STATES OF AMERICA8,179,774FASHION APPAREL OR ACCESSORIES SHOPCALVIN KLEINUNITED STATES OF AMERICA7,832,098FASHION APPAREL OR ACCESSORIES SHOPSWAROVSKIAUSTRIA7,633,976JEWELLERMATCHES FASHIONUNITED KINGDOM7,482,298FASHION APPAREL OR ACCESSORIES SHOPTED BAKERUNITED K

114、INGDOM7,357,649FASHION APPAREL OR ACCESSORIES SHOPHERMESFRANCE7,027,774FASHION APPAREL OR ACCESSORIES SHOPHARRODSUNITED KINGDOM6,698,371FASHION APPAREL OR ACCESSORIES SHOPROLEXSWITZERLAND6,527,012JEWELLERCHANELUNITED KINGDOM6,427,969FASHION APPAREL OR ACCESSORIES SHOPRAY-BANITALY6,311,078FASHION APP

115、AREL OR ACCESSORIES SHOPMICHAEL KORSUNITED STATES OF AMERICA6,100,479FASHION APPAREL OR ACCESSORIES SHOPOMEGASWITZERLAND4,521,333JEWELLERBURBERRYUNITED KINGDOM3,674,609FASHION APPAREL OR ACCESSORIES SHOP16|RetailX|June 2023RXSLXEU23RP 2023 and towards unique,aspirational luxury brands.This is partic

116、ularly true for younger shoppers,who also value the sustainability aspects of having fewer,longer-lasting garments.The resale value of luxury apparel is also a driver here.European luxury apparel brands have done well out of ecommerce because it allows young,aspirational shoppers from around the wor

117、ld to buy from them.This is particularly apparent in China,which has seen its luxury market expand rapidly in the 2020s,driven by increasing availability of European brands to the market via online channels.The rise of affordable luxury has helped the luxury apparel segment,with a variety of mid-pri

118、ced,high-quality brands entering the market.Jewellery,which includes luxury precision watches,is strongly represented.Watches are an interesting segment of the market because they offer a true investment opportunity for buyers.While many are initially drawn to luxury designer watches as a means of s

119、ignalling their status and success,they are also one of the few retail items that go up in value post-purchase.For example,exports of Swiss watches in 2022 to markets in Europe,the US and China totalled some 2.4bn2.The market for watches has been further enhanced by the range of online marketplaces

120、and sellers dedicated to the space,which has increased demand and added competition to the market.Finally,luxury cosmetics make a strong showing among the Top 50,driven by a rising demand among European consumers for high-quality,natural CARTIERFRANCE3,550,573JEWELLERPRADAITALY3,436,807FASHION APPAR

121、EL OR ACCESSORIES SHOPYVESSAINTLAURENTFRANCE2,932,007FASHION APPAREL OR ACCESSORIES SHOPARMANIITALY2,726,751FASHION APPAREL OR ACCESSORIES SHOPVERSACEITALY2,615,169FASHION APPAREL OR ACCESSORIES SHOPBALENCIAGAFRANCE2,613,189FASHION APPAREL OR ACCESSORIES SHOPTIFFANY&CO.UNITED STATES OF AMERICA2,330,

122、379JEWELLERWATCHFINDER&CO.UNITED KINGDOM2,288,302JEWELLERTISSOTSWITZERLAND2,251,441JEWELLERBARBOURUNITED KINGDOM2,168,449FASHION APPAREL OR ACCESSORIES SHOPMONT BLANCGERMANY1,933,408FASHION APPAREL OR ACCESSORIES SHOPFENDIITALY1,797,056FASHION APPAREL OR ACCESSORIES SHOPLONGCHAMPFRANCE1,771,255FASHI

123、ON APPAREL OR ACCESSORIES SHOPTAG HEUERSWITZERLAND1,713,716JEWELLERMONCLERITALY1,697,940FASHION APPAREL OR ACCESSORIES SHOPCHRISTIAN LOUBOUTINFRANCE1,684,952FASHION APPAREL OR ACCESSORIES SHOPCELINEFRANCE1,581,452FASHION APPAREL OR ACCESSORIES SHOPVALENTINOITALY1,227,585FASHION APPAREL OR ACCESSORIE

124、S SHOPADOLFO DOMINGUEZSPAIN1,201,438FASHION APPAREL OR ACCESSORIES SHOPVIVIENNE WESTWOODUNITED KINGDOM1,126,884FASHION APPAREL OR ACCESSORIES SHOPDOLCE&GABBANAITALY1,080,095FASHION APPAREL OR ACCESSORIES SHOPTHE REALREALUNITED STATES OF AMERICA953,733FASHION APPAREL OR ACCESSORIES SHOPLANCMEFRANCE92

125、9,925COSMETICS SHOPLOEWESPAIN926,126FASHION APPAREL OR ACCESSORIES SHOPJIMMY CHOOUNITED KINGDOM920,288FASHION APPAREL OR ACCESSORIES SHOPBOTTEGA VENETAITALY875,034FASHION APPAREL OR ACCESSORIES SHOPEUROPEAN LUXURY REPORT 2023|LARGEST 5017|RetailX|June 2023RXSLXEU23RP 2023 products to apply to their

126、bodies.An increased awareness of the environment,nature,sustainability and personal protection instilled during the pandemic has driven more users to look at spending more on better cosmetic products,thus driving growth in this segment.BRANDSThe brands that are winning consumer favour in Europe are

127、again focussed on apparel and accessories,with leaders Tommy Hilfiger,Louis Vuitton and Ray-Ban all appearing in the Top Five most frequently purchased luxury brands in the region.This Top Five does also,however,feature luxury cosmetics brands Lancme and affordable luxury jewellery brands Pandora as

128、 top sellers in the region.When asked why they buy luxury items from these brands,European luxury consumers say they typically buy these goods as gifts,or for the pure pleasure of it.The effects of social media,email marketing and instore service drive around one-quarter each of respondents.This imp

129、lies that the real draw of luxury brands is that they are a treat,either for the user themselves or for a family member or friend for a special occasion.This sets the sector apart from almost all other sectors in retail,which are driven to a much larger extent by necessity of purchase.This changes t

130、he dynamic of how luxury brands operate and,to some extent,sees the rules of retail that apply to all other sellers apply less to these brands.EUROPEAN LUXURY REPORT 2023|LARGEST 501 https:/ 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEFarFetch ha

131、s established itself as one of new breed of fashion marketplaces catering to the luxury end of the market.It has tapped into the growing ecosystem of younger luxury shoppers by building its business on providing an ecommerce platform for small luxury brands,boutiques and designers.The company now ha

132、s more than 1,400 such sellers on its platform and is constantly reaching out to brand owners with the offer of hosting their wares on its site.This direct approach gives smaller players a chance to leap into ecommerce with minimal outlay and the model has,so far,been very successful.Being online-fo

133、cused,the company saw a boom in sales and traffic across 2019 and 2020,during pandemic lockdowns.While this growth tailed off to some degree as the market has normalised,dropping 18%in 2021,the site continues to look at new ways to service its customer base.Having signed up most of the boutiques and

134、 designers it can find,the company has shifted to a plan of expansion through acquisition and deals.In January 2022,it bought leading luxury beauty marketplace Violet Grey,adding an array of beauty and cosmetic products to its luxury fashion business.This move opens up the site to the burgeoning lux

135、ury beauty market,estimated to be worth$69bn globally each year,as well as adding a swathe of new products and content to help drive site traffic.The company has looked to generate further growth by embedding itself and its luxury marketplace FarFetchmodel into the wider luxury sector.In mid-2022,it

136、 effectively partnered with luxury giant Richemont,buying a 47.5%stake in YOOX Net-a-Porter(YNAP),a hybrid of luxury clearance seller and shoppable digital magazine.The move is designed,in the words of Richemont chairman Johann Rupert,as a step towards his ambition of an“independent neutral online p

137、latform for the luxury industry”that would attract both high-end brands and their customers.Yet the deal has attracted the attention of the UKs Competition and Mergers Authority(CMA),which deems it to be effectively a merger.At the time of writing,the deal had still not been ratified.Should it go th

138、rough,it will see Richemont use Farfetchs technology to take its brands towards a new way of selling through a marketplace model,while giving FarFetch access to many more luxury brands and products.FarFetch at a glanceCompany:FarFetchHQ:London,UKFounded:2007Employees:5,500Revenues 2022:2.4bnLuxury s

139、egments:Clothes,shoes,accessories,jewellery,designer cosmetics and perfumesBrands:FarFetch is a marketplace that sells items from more than 1,400 brands,stores and boutiques from all over the world19|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMP

140、ANY PROFILENow owned by luxury mega-group LVMH,Italian luxury fashion brand Fendi made its name as a furrier,specialising in fur coats and stoles,along with a range of leather goods.From a humble boutique in Rome,the family owned business gained notoriety by selling furs to tourists,cementing its in

141、ternational reputation early on.In 1965,a then relatively unknown fashion designer called Karl Lagerfeld took over as creative director at the company,creating a host of seminal designs in fur,expanding the businesss ready-to-wear womens clothing range and creating the companys now distinctive doubl

142、e F logo.Fendi has long been at the forefront of developing not only new styles,but also using technology and exploring new business models.In 2014,for example,it was one of the first companies to use drones at a fashion show,while in 2016,the brand signed a 2.8mn annual lease on the modernist archi

143、tectural marvel Palazzo della Civilt Italiana also known as the Square Colosseum.Here,it set up its new global HQ,as well as turning part of the building into a luxury,Fendi-branded five star hotel one of the earliest forays into a broader lifestyle business made by a luxury brand.Fendi again took i

144、ts future into its own hands in 2017,when it partnered with online luxury marketplace FarFetch to offer users a made-to-order handbag design service.FendiTipping its hat to the growing interest among its younger clientele in sustainability,the company has more recently begun to champion the fact tha

145、t all its products have always been made from natural products typically leather and fur which it emphasises have been ethically sourced.Fendi has also started to leverage its army of craftsmen to make its business more circular by offering repair and rebuild services that both extend the life of so

146、me products while refreshing others for resale.The company says it has remodelled around 50 fur pieces each year,while much of the material leftovers from production of all its garments are upcycled into the next years collections.Fendi at a glanceCompany:Fendi HQ:Rome,ItalyFounded:1925Employees:1,3

147、26Revenues 2022:1.5bnLuxury segments:Fur,ready-to-wear apparel,leather goods,shoes,fragrances,eyewear,timepieces and accessoriesBrands:Fendi20|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEFounded in 1935 by pioneering perfumer Armand

148、Petitjean,Lancme named after the forest of Lancosme in central France,famous for its roses and the inspiration for Lancmes golden rose logo started life a luxury fragrance house,but has since morphed into a leading perfumer,maker of cosmetics,quasi-scientific skin care and makeup.In 2017,Lancme was

149、one of the first luxury businesses to delve into the then nascent world of augmented reality(AR).Working with Perfect Corp and its YouCam AR tech,the luxury company integrated many of its leading makeup products into the app,allowing the consumer to virtually apply various looks to their face on the

150、 screen.To deliver an immersive beauty experience,YouCam Makeup and Lancme offer in-app product purchases for the Je Ne Sais Quoi looks on the site,helping users bring unique styles to life.This seamless consumer shopping experience makes Lancme beauty accessible with any mobile device.Around this s

151、ervice,the Lancme app has run livestreamed makeup tutorials since 2017,again marking the company out as a leader in utilising technology in new ways to interact with consumers and generate additional revenue.The brand expanded on this in 2021,with the launch of an online pop-up shop offering what it

152、 calls,“an interactive ecommerce experience”.Shoppers can virtually walk through the site which is designed to mimic a bricks-and-mortar space and add real-Lancmeworld products to their shopping basket as they go.First launched in Australia during February 2021,this technology-driven pop-up was crea

153、ted in partnership with ByondXR in an attempt to engage new as well as existing customers.Unlike traditional online shops,visitors can also participate in games to unlock promotional offers,as well as engage with beauty influencers and gain professional skin care advice in one-to-one sessions.The re

154、sults have been impressive,with web traffic growing significantly in the run-up to the pandemic and continuing to new heights in 2022.Lancme at a glanceLancme at a glanceCompany:Lancme(owned by LOral)HQ:Paris,FranceFounded:1935Employees:28,526Revenues 2022:23mnLuxury segments:Perfume,cosmetics,skin

155、care,makeupBrands:Lancme21|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEWHO SHOPS LANCME?RetailX customer data shows that the main audience for Lancme lies among higher earning Millennials.Looking at purchases made in the past three y

156、ears,64%of European consumers in the higher income bracket those earning more than 88,000 per annum have made one of more purchases from Lancme.A further 44%of middle income 44,000 to 87,900 income per annum have made more than one purchase in the past three years from the site.One-fifth of lower in

157、come consumers on 44,000 or less income per annum have made one purchase.These shoppers tend to be younger shoppers,with 51%of Millennials those aged 27 to 42 purchasing Lancme at least once in the past three years.A further 39%of 11 to 26 year old Gen Z-ers purchase at least once,while Gen X and Bo

158、omers account for 42%and 34%respectively.These demographics demonstrate to some degree that makeup is perhaps more the preserve of younger professionals,looking to upgrade their makeup from those brands typically favoured by teens.The Gen Z figures also suggest that there is a growing number of very

159、 young users turning to high-end cosmetics as first-time purchases.This bears out the conjecture that these younger shoppers are targeting higher-value cosmetics products for both their high quality and natural ingredients,as well as their sustainability credentials.It also points to Lancmes particu

160、lar focus on AR,livestreaming and virtual pop-up shops as paying dividends among this group of shoppers.22|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPORT 2023|COMPANY PROFILELouis Vuitton is the LV in giant luxury conglomerate LVMH Mot Hennessy Louis Vuitton the M being famous vintner and

161、champagne maker Mot,and the H cognac distiller Hennessy.In the mid-1980s,French investor Bernard Arnault had the idea to create a group of luxury brands.He worked with Alain Chevalier,then CEO of Mot Hennessy,and Henry Racamier,president of Louis Vuitton,to form LVMH.As a result,the LVMH Group has s

162、een immense growth across the past three decades,expanding globally and bucking the industry trend by seeing strong revenue growth even in 2021,when it rose 49%to hit a staggering$76bn way above its pre-pandemic high of$60bn in 2019.Louis Vuittons contribution to this has been immense.The company ha

163、s seen its web traffic rocket in 2022,building on substantial gains made in 2020 as a result of the brand treading a fine line between tradition and innovation.The company prides itself on offering the ultimate in handmade quality,yet has managed to adopt a highly personalised approach,even in the d

164、igital age.The luxury brand trades on the use of top talent across its designers,models and the celebrity endorsements it curates.Top names in the fashion industry such as Helmut Lang,Azzedine Alaa,Sybilla,Manolo Blahnik,Vivienne Westwood,Isaac Mizrahi,Stephen Sprouse and Romeo Gigli have all been i

165、nvolved with LV,as have models including Emmy Louis VuittonRappe and Xavier Dolan.Celebrity endorsements arguably have the most influence and the brand has worked with Jennifer Lopez,Uma Thurman,Angelina Jolie,Sean Connery,Mikhail Gorbachev and Pharrell Williams,to name just a few.Like many brands,i

166、t has distanced itself from Kanye West,though.WHO SHOPS LOUIS VUITTON?From a consumer point of view,LV is very much the preserve of the high-value shopper,with two-thirds(63%)of its customers earning above 88,000 per annum(see page 23).LV does make a small showing among lower earners,with around 40%

167、of sales coming from the other brackets.Interestingly,around 4%of both lower income shoppers earning below 44,000 per annum and those earning upLouis Vuitton at a glanceCompany:Louis Vuitton(owned by LVMH Group)HQ:Paris,FranceFounded:1854Employees:19,000Revenues 2022:79bn for entire LVMH GroupLuxury

168、 segments:Luxury bags and leather goods,to ready-to-wear apparel,footwear,perfumes,watches,jewellery,accessories,sunglasses and booksBrands:Louis Vuitton23|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPORT 2023|COMPANY PROFILEto 88,000 per annum also shop LV on rare occasions,marking the bran

169、d out as one that is truly aspirational.LV is shopped by younger shoppers,with one-quarter(27%)of those under 42 making regular purchases from the brand and almost 50%of this same cohort doing so occasionally.41%of Gen Z are buying LV,with this young,affluent group of shoppers forming a foundation f

170、or the company for at least the next generation to come.Creating and cultivating this younger customer base is vital for the continued longevity of luxury brands,which tend to rely on long-term customer relationships for sustained business.The downside of this reliance is that the older ones eventua

171、lly die.Having a mass of younger shoppers already engaged is therefore vital.LV has clearly managed this a feat all the more remarkable given the more traditional bent of its goods.To do this,the company has used a range of celebrity influencers,as well as some interesting cross-brand tie ups.For ex

172、ample,LV was the first luxury brand to partner with an eSports team,while for the US National Basketball Association(NBA),it designed a trophy cover and co-branding to reach a younger,US audience.Similarly,the brand has targeted top soccer stars Cristiano Ronaldo and Lionel Messi for promotion and e

173、ndorsement.This move into sports both real and virtual is seen as a key part of LVs push to grow its audience and,on the face of the data,it seems to be working.24|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEThe third-largest jewelle

174、ry company behind Cartier and Tiffany&Co,Denmarks Pandora is marked out as being one of a new breed producing affordable luxury,desirable,mid-market jewellery that commands some considered purchase,but which isnt out of the reach of the many.This is exemplified by its charm bracelet with addable cha

175、rms,which was first marketed in 2000 and protected by a patent.Since its formation in 1982,Pandoras collection has grown to include an assortment of rings,necklaces,earrings and,for a time,watches.By 2011,a Pandora item was sold somewhere in the world every second of every day,making it one of the b

176、iggest players in the affordable luxury accessory market not just in Europe,but globally.As of 2022,21%of the brands revenues came from its online presence,just shy of the 28%garnered from third-party and wholesale distribution.The companys 6,500 stores worldwide brought in the remaining 51%of sales

177、.What marks the company out as a business is its extremely cost-efficient design and production model.Centred around a production facility in Gemopolis in Thailand which employs 13,200 of the companys 26,000 employees,it has low production costs and an efficient supply chain.From this,Pandora has be

178、en able to expand to sell in more than 100 countries on six continents,through approximately 6,700 points of sale,including approximately 2,400 concept stores.With 90%of its sales taking place in Europe and the US,the company is now looking to target China.PandoraPandora consistently generates aroun

179、d 3bn in revenues each year and has,since the onset of the pandemic,grown its online presence considerably.Launching into ecommerce in 2011,the brand has more recently instigated a company-wide programme its Phoenix Strategy built around the four pillars of brand,design,personalisation and core mark

180、ets.This will see it offer global customers a seamless omnichannel experience between online and instore research and purchase.In May 2021,Pandora announced the company would phase out mined diamonds in favour of gems manufactured in a laboratory.This new diamond jewellery was first sold in the UK b

181、efore being rolled out globally during 2022.Pandora at a glanceCompany:PandoraHQ:Copenhagen,DenmarkFounded:1982Employees:26,000Revenues 2021:30bnWeb visits 2021:18.2mnLuxury segments:Jewellery and accessoriesBrands:Pandora25|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPORT 2023|COMPANY PROFI

182、LEWHO SHOPS PANDORA?Pandora has created its business around the idea of mass market,affordable luxury yet interestingly,it is the preserve of higher earners,with 21%of those with a household income in excess of 88,000 per annum making multiple purchases from the company.However,the mass-market appea

183、l is demonstrated by the 28%of those earning below 88,000 per annum who also regularly buy from the brands.These customers include 14%of regular shoppers in the lower income bracket.Aside from the more affordable luxury tag,this can also be explained by the brands appeal to a more youthful market.60

184、%of Gen Z shoppers under the age of 26 and 67%of Millennials under 42 buy the brand,while no one over 78 does.This approach of offering affordable luxury is a natural fit with a larger swathe of the European shopping public but it is the perceived luxury afforded by the individuality of the companys

185、 core charm bracelet that is real interest.The bracelet is obviously a mass-produced offering at odds with luxurys traditionally hand-crafted approach.Yet the personalised nature of the charms gives the impression of a much more luxurious experience.The model is particularly appealing to younger sho

186、ppers since it offers a more affordable way to personalise higher-end jewellery.This again cements the brands identity with younger shoppers,who subsequently buy Pandoras more expensive items as they get older.This is likely to see the Gen X cohort grow as Pandoras millennial customers age.26|Retail

187、X|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEPopularised by Peter Fonda in the 1969 classic Easy Rider,Ray-Ban Wayfarer sunglasses are the epitome of studied cool.So too are the firms Aviators,worn by countless movie stars including Top Gun

188、 himself,Tom Cruise and originally sported by General Douglas MacArthur during World War Two.In fact,it was aviation that created the company.In 1929,US Army Air Corp colonel John A Macready teamed up with medical equipment maker Bausch&Lomb in Rochester,New York,to create a pair of aviator sunglass

189、es that would reduce the distracting glare of the bright blue sky and white clouds when flying.Macready had learned from bitter experience that goggles fog up at high altitude,so he thought open-sided glasses would work better.The 1936 prototype,featuring a patented anti-glare coating on green lense

190、s and plastic frames which feel less cold against the skin at high altitude was born.The name,Ray-Ban,was derived from the coating.The company,which hit its fashion zenith in the 1980s,was sold to Italian sunglasses and eyewear company Luxottica in 2010,which itself was bought by French lens maker E

191、ssilor in 2017 for 22.8bn.These aggregations created one of Europes largest eyewear and sunglasses makers.However,the group was dogged by problems,with much of the management,R&D and marketing of Essilor and Luxottica operating in parallel within the same organisation,leading to conflicting marketin

192、g and huge operating costs.It wasnt until 2021 that Luxottica founder Leonardo Del Vecchio agreed to Ray-Banshare power with the board of Essilor and thus end years of spats between the two.This move unlocked some 300mn of annual cost savings and set the company up to make more of the 20%of the glob

193、al eyewear business that the group current owns.For Ray-Ban,this has seen a shift in the business as it looks not only to operate in the lucrative luxury eyewear market,but also to leverage technology to create smart glasses.These new models based on existing frame styles feature dual 5MP cameras fo

194、r hands-free photography,discreet speakers mounted in the arms,voice control via a microphone at the arm hinge,touch control to run the camera and audio playback and a charging case.Working with Facebook owner Meta,the glasses sync with Facebook and use Meta tech to sync with the users phone.Ray-Ban

195、 at a glanceCompany:Ray-Ban(owned by EssilorLuxottica)HQ:Milan,ItalyFounded:1936Employees:10,000+Revenues 2021:5.6bn(total EssilorLuxottica)Luxury segments:Sunglasses and eyewearBrands:Ray-Ban(parent company EssilorLuxottica also owns Oakley)27|RetailX|June 2023RXSLXEU23RP 2023 EUROPEAN LUXURY REPOR

196、T 2023|COMPANY PROFILEWHO SHOPS RAY-BAN?Since they arent the lowest cost sunglasses around Ray-Bans are very much purchased by higher-income shoppers,with 16%of those earning 88,000 and above buying them multiple times.This extends by another 50%of this cohort making one-off purchases.The nature of

197、sunglasses as a personal fashion purchase makes the one-off spend data more appropriate for analysis,showing that theres interest among all income brackets.25%,27%and 26%of low,middle and wont say incomes have bought Ray-Bans in the past three years.There is a similarly wide spread in their age appe

198、al,with 40%of Millennials,31%of Gen Z,36%of Gen X and 23%of Boomers buying in the same time.This shows the enduring,cross-generational appeal of the brand,driven in part by Ray-Bans having remained fashionable across their entire history.Even young people aspire to the distinctive design and while t

199、he move into smart glasses is an attempt to stay relevant,with such brand recognition,the need to do this is questionable.It is also worth noting that smart glasses are something of a gamble,since digitally enabled eyewear has not yet gained much market traction.Google Glass,released almost a decade

200、 ago,never took off,while Ray-Bans tech partner,Meta,has struggled with its Oculus VR headset business.Perhaps a move to integrate tech into well-loved Ray-Bans but leaving it at just basic camera,earphones and integration could prove to be the fresh approach that technical glasses need?28|RetailX|J

201、une 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILETommy Hilfiger in one of the worlds best known premium fashion brands thats sold worldwide from department stores and standalone branded shops in more than 100 countries.The US company,with its HQ i

202、n the Netherlands,was the eponymous work of its founder,who partnered with Mohan Murjani in New York in 1985 to create a fashion line based on preppy New England chinos and button-down shirts.Adopting a more baggy look with oversized logos in the 1990s,the brand was quickly embraced by the hip-hop c

203、ommunity.When Snoop Dogg appeared on Saturday Night Live wearing one of the brands sweatshirts,it sold out in stores across New York the very next day.The company has worked with numerous musicians since including Aaliyah,Sheryl Crow and Britney Spears firmly cementing its place in pop culture and f

204、ashion.Tommy Hilfiger came late to the web.As recently as 2021,it was only just launching its T site in Romania.However,making up for this slow start,the brand has since leapfrogged many other fashion brands and become one of the pioneers of the metaverse,launching a unique multi-metaverse hub creat

205、ing a virtual presence on a host of metaverse platforms,including Decentraland,Roblox,Spatial,DressX and Ready Player Me.This hub,created by tech company Emperia,is set in structures made of the brands TH monogram,which will appear across all platforms,creating a unified digital brand story and allo

206、wing for seamless movement between the retailers own website and Tommy Hilfigerthe various metaverses.The aim is to provide an end-to-end shopping journey.With this first cross-metaverse hub,Emperia said it is blurring the frontiers of Web3,pioneering a new layer for interoperability that enables a

207、connection between the metaverse,ecommerce,entertainment and direct performance.These lofty ambitions are backed by data.Emperia tracks in-hub user activity,allowing a granular insight on user journey and engagement across all metaverse experiences.The digital hub offers four exclusive selected item

208、s,led by the Tommy Hilfiger iconic Varsity Jacket,presented in different aesthetic representations across all platforms.These will also be available for sale in two different forms:physically from Tommys ecommerce platform and digitally from digital fashion platform,DressX.Tommy Hilfiger at a glance

209、Company:Tommy Hilfiger(owned by Phillips-Van Heasen PVH Group)HQ:Amsterdam,The NetherlandsFounded:1985Employees:16,000+Revenues 2022:4.7bn Luxury segments:Manufactures and sells apparel,footwear,accessories,fragrances and home furnishings.Brands:Tommy Hilfiger,Tommy Jeans29|RetailX|June 2023RXSLXEU2

210、3RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEWHO SHOPS TOMMY HILFIGER?As a luxury fashion brand,Tommy Hilfiger goods arent cheap and so are bought,in the main,by higher earners in the 88,000 per annum income bracket,with 23%making multiple purchases in the la

211、st three years.16%and 14%respectively of middle and lower income shoppers purchased multiple items over the same period.Age-wise,the brand has maintained the youth appeal that saw it attain mass appeal in the 1990s,with a staggering 33%of Gen Z shoppers claiming to have bought multiple items in the

212、past three years and a further 35%making one purchase.Millennials,too,are keen on Tommy Hilfiger,with 26%having bought multiple items and 35%at least one in the past three years.This youth appeal,which once centred on rap music,now includes not only the metaverse as a means of engaging with Gen Z,bu

213、t also in linking up with pop stars such as Shawn Mendez.The company is increasingly tapping into Gen Z causes,with its latest Fashion Frontier Challenge Prize going to Koalaa and Moner Bondhu for their innovative concepts supporting those with limb differences.The brand has also teamed up with pre-

214、loved fashion marketplace Depop to extend the life of Tommy clothes and support its ambitious goal to become fully circular by 2030.A tie-up with Disney to mark the entertainment companys centenary further extends Tommys reach into the younger end of the Gen Z market.30|RetailX|June 2023RXSLXEU23RP

215、2023 EUROPEAN LUXURY REPORT 2023|COMPANY PROFILELuxury Swiss watch maker TAG Heuer has come to epitomise the increasing popularity of luxury watches,becoming not only a thing of beauty,form and function,but also an investment.The company was founded in 1860 with a remit to combine precision watchmak

216、ing with an avant-garde design ethos.Shortly after its inception,TAG Heuer introduced the Mikrograph a mechanical chronograph five times more accurate than any other and became the official timekeeper for sports most famous competitions.With the arrival of motorsport,TAG Heuer became the first watch

217、making brand to sponsor the Formula 1 World Championship.Its precision has manifested itself not only through branded time-keeping at events,but has also led to many of the worlds top motorsport practitioners sporting TAG Heuer watches on their wrists.Such endorsement has helped secure the watchmake

218、r a top place in the aspirational world of luxury.While trailing behind Rolex,sales at TAG Heuer have grown consistently in the past five years,with online sales starting to spike in 2022.The luxury watch market has become the target of increasingly affluent European Millennial shoppers and many of

219、these are shopping online for collectable time pieces.The avant-garde designs of TAG Heuer have made them particularly attractive to this group.Increasing sales among younger shoppers have also seen the watchmaker branch out into offering a luxury smart watch.Launched in 2015,TAG Heuer Connected run

220、s on Android Wear and offers a range TAG Heuer of smartwatch functions controlled by an app on the users smartphone.In 2017,the company introduced Connected Modular which allowed the user to switch out digital and mechanical modules on their watch,offering what the company claims is the best of both

221、 worlds.TAG Heuer has built on this image of derring-do racing drivers with the introduction of eyewear,as well as working with French tech company ModeLabs Group to produce a TAG Heuer-branded mobile phone under licence.ModeLabs acquired the license in late 2007 and marketed the first TAG Heuer-bra

222、nded mobile phone in late 2008.The company markets an additional line of mens fashion accessories,including wallets,belts,bags,jackets,bracelets and cuff-links.TAG Heuer at a glanceCompany:TAG HeuerHQ:La Chaux-de-Fonds,SwitzerlandFounded:1860Employees:1,600+Revenues 2022:754mn Luxury segments:Manufa

223、ctures and sells luxury watches,accessories,eyewear and mobile phonesBrands:TAG Heuer31|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|COMPANY PROFILEVivienne Westwood,the eponymous fashion brand established by one of the pivotal people in the emergen

224、ce of punk in the 1970s,is one of the last independent fashion brands in the world.Despite the founders death in December 2022,the brand continues to attract a loyal,esoteric audience for its luxury apparel and homeware.The company exemplifies a number of the luxury markets characteristics.It design

225、s,manufactures,markets and sells its own clothing,while offering something different from mainstream brands in making not only high-quality garments but also items that have a specific aesthetic and which stand out.This has seen Vivienne Westwood produce iconic fashion items in recent decades.The co

226、mpany may have started out rehashing teddy boy suits and biker gear in the 1970s but it soon created its own unique clothing,with the invention of the bondage trouser.This sense of pushing at convention continued long into the 21st century,with one of the founders final ranges being a range of exerc

227、ise wear featuring playing card prints,plastic bottle shoes and tights stuffed with rubbish under the We Are Motherf*r name.Yet despite this rebellious streak,the company has often attempted to break into the mainstream,collaborating with Asics,Vans and Buffalo,as well as working with Eastpak to cre

228、ate a range of environmentally friendly bags and accessories Vivienne Westwoodaround the slogan Save our oceans.Always forward thinking,it was also one of luxury fashions earliest adopters of online and saw online sales rocket during the pandemic years of 2020 to 2022.Sales have also been driven by

229、a growing interest in unique luxury fashion among younger shoppers.This is part has been driven by a new crop of musicians,including Dua Lipa,wearing Vivienne Westwood in recent times.The company sells through a range of luxury fashion marketplaces,including Lyst.Its clothing is increasingly popular

230、 on luxury fashion resale site Vestiaire Collective,again cementing its position among younger shoppers looking for the uniqueness afforded by luxury and not found in the mainstream world of fast fashion.Vivienne Westwood at a glanceCompany:Vivienne WestwoodHQ:London,EnglandFounded:1971Employees:557

231、Revenues 2022:77.74mn Luxury segments:Designs and manufactures luxury womenswear,menswear,footwear accessories and homewareBrands:Vivienne Westwood32|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|THE ROAD AHEADThe European luxury industry was impacte

232、d heavily by the pandemic,particularly the effect it had on international travel and how restrictions prevented luxury shoppers from the US and Asia purchasing Europes luxury goods.However,the industry demonstrated extraordinary vision not to mention speed of action when it switched from being a mos

233、tly physical business to one that incorporated the latest in online-selling tech.As the pandemic has waned and physical travel and retail have become the norm again,Europes luxury sector has done sterling work in combining its new-found tech with its traditional retail model.The resulting model has

234、placed the European luxury industry at the forefront of the hybrid,multichannel,omnichannel retail world driving forwards not only its own business,but becoming the outlier for new retail platforms such as the metaverse.This has seen it embrace new tech while also leveraging existing services to cre

235、ate new selling models.This approach has seen the sector attract a Next steps and developments in EU luxury sellingThe European luxury sector has become an outlier for embracing technology and change.So what is in store in the sector in the next 24 months?whole new audience,priming itself for the fu

236、ture by attracting younger shoppers to the world of luxury.So,what is in store in the coming 12 to 24 months?CHANGING DEMOGRAPHICS:YOUNG SHOPPERS Since its inception in the 14th century,the luxury market has been largely targeted at the older end of the market those with money,style and an eye for l

237、ongevity.However,this approach has an in-built limit,since old,rich clients eventually pass on to the luxury store in the sky.It also precludes growth,since it relies on shoppers growing into the luxury mould,rather than being cultivated into it from a young age.Typically,brands outside the traditio

238、nal luxury space,as well as some startup luxury brands and a host of affordable luxury brands had already identified the potential of this market even before the pandemic.Young,affluent,style-conscious shoppers inevitably want something different to whats on offer on the high street and are prepared

239、 to pay for it.Indeed,a report in 2019 suggested that the ideal target audience for luxury was now the 25 to 44 year old group1,with younger shoppers from Gen Z coming up alongside Millennials to buy affordable luxury items,defined as high-quality goods that come at a higher,yet still obtainable,pri

240、ce.This has,in turn,shifted the emphasis of many players in the luxury market to embrace affordable luxury goods and to target younger shoppers via social media,immersive marketing and more.The thinking is that,initially,this attracts new shoppers to luxury brands.Although the items are less valuabl

241、e,they can sell a lot more of them to more people.Secondly,affordable luxury acts as an on-ramp to higher-value purchases,particularly in the future as these shopper get older and have more income.This then delivers the third benefit of helping to cultivate the next generation of luxury shoppers.Whi

242、le this shift in target age range is shaping the wider mores of the luxury industry driving sustainability,marketing and technology investment the industry has a keen eye on an even younger generation of luxury shoppers:Generation Alpha.These are defined as those born between 2010 and 2025 and are,e

243、ssentially,the children of Millennials and older Gen Z-ers.They are the younger siblings of Gen Y and,by 2025,will outnumber Boomers.Many of them will also live to see the 22nd century2.This bunch of youngsters are the most materially endowed generation ever and are totally tech savvy,committed to s

244、ustainability and have,even at a young age,access to funds.While not yet self-determining luxury shoppers,they are learning to see the value in luxury items and to covet them through gifting from their parents and seeing their older siblings and relatives in Gens X,Y and Z embracing affordable luxur

245、y.According to the 2020 Children Economy Insights Report,parents spend between 30%and 50%of their household income on feeding,clothing and entertaining their children.Gen Alpha is also a greater part of the purchase decision process today,directly or indirectly influencing family spending on things

246、like holidays or even the next family car3.33|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|THE ROAD AHEADUndoubtedly,Gen Alpha represents the future of luxury consumers.It will only be a matter of years before they can financially enter the luxury u

247、niverse,so luxury brands must anticipate this opportunity to build lifelong relationships.MARKETPLACES,SOCIAL AND SUPER APPSConsumers are increasingly shopping for everything they want on marketplace sites from Amazon through to specialised luxury marketplaces such as FarFetch and Secret Sales.This

248、is forcing luxury brands to not only embrace ecommerce,but also to look at how to take the leap into not necessarily owning the customer themselves.While this comes with a range of brand identity challenges not least diluting in some instances literally hundreds of years of heritage it is increasing

249、ly the place that younger shoppers are heading to buy luxury.Can luxury brands afford not to be there?Some brands,such as Kurt Geiger,have approached the issue by creating their own marketplace ranges,while others use them more judiciously to clear last years stock.Either way,luxury brands have to g

250、et to grips with how to work with marketplaces.The stakes couldnt be higher.While marketplaces may be a problem they are working on,social media sites morphing into quasi-marketplaces perhaps presents an even bigger iteration of the same problem.Gen Alpha may well be the future of luxury sales but t

251、hey are very much social media animals who will want to buy their luxury goods and talk about them on social media sites.For example,TikToks 1.2bn active user population covers a full 70%of Gen Z,who currently have$143bn in total spending power.By 2025,Millennials and Gen Z will contribute 130%of th

252、e growth in the personal luxury goods market.No business can afford to ignore any of these demographics.This move towards social media and marketplaces,along with the growing sales of European luxury in China,brings us to the issue of super apps the apps that do several things at once for consumers.

253、The prime example is Chinas WeChat.Ostensibly a social media and messaging platform,WeChat also now allows users to shop and pay for things,as well as communicate directly with brands.Over the Chinese New Year in January 2023,WeChat saw sales on its app of travel,catering,retail and movies increase

254、by 76%,40%,32%and 27%respectively,compared to 2022.It also saw a rise of 23%of use of its own payment service on and offline.This,coupled with the rise of Conversational Commerce where brands use the messaging elements of platforms such as WeChat to engage consumers in a conversation that leads to a

255、 sales is going to be a strong presence across all ecommerce in 2023 and beyond.With luxury users often at the cutting-edge of tech uptake,it figures that luxury brands are going to not only take on marketplaces and social media but also adapt their operations and attitude towards this new world of

256、engagement-led selling.It may even be where they pioneer the use of ChatGPTs adaptive AI to drive that engagement.LIVESTREAMING Livestreaming grew in popularity across the pandemic and has continued to find a niche of interested viewers which it hopes to turn into buyers across 2021 and 2022.Between

257、 February and March 2020,Instagram saw a 70%rise in livestream viewership4,while Facebook data suggests that 800mn people watch live videos every day across Instagram and Facebook5.Shutterstock34|RetailX|June 2023RXSLXEU23RP 2023 Many luxury brands have been quick to embrace this,swapping out some g

258、lossy,high-quality video marketing for more live,advice-based content that taps into the shift in consumer attention to such videos,while also turning towards an increasingly young cohort of shoppers who are getting excited by buying luxury brands.Research suggests that the livestreaming market will

259、 soon be worth$70bn,driven primarily by eSports,but with entertainment services growing in use6.When it comes to retail,livestreaming accelerates conversion and improves the appeal of brands,yet it doesnt often cause direct sales yet.In China,where livestreaming was adopted relatively early by consu

260、mers,growth has been rapid and strong,hitting$171bn by 2020,up from$67bn in 20197.In the mainstream retail world,Clarins and Clarks Shoes have both been early adopters of livestreaming,with the former concentrating on skincare expert advice and the latter looking at showcasing shoes.Both have made t

261、heir video content directly shoppable8.Of the luxury brands that have adopted livestreaming,some prime examples are Marc Jacobs,Mulberry and Chanel.Others have started to leverage their other partnerships,such as Fenty running the Fenty Social Club with its brand ambassador Rhianna,while high-end ca

262、shmere designer Madeline Thompson has hosted special live sets with DJ Henri the DJ spinning the wheels of steel while wearing one of Thompsons iconic rainbow-coloured knits.One of the biggest brands to try livestreaming has been Gucci.In 2020,it livestreamed a 12-hour digital fashion show.Alessandr

263、o Micheles Epilogue was broadcast on several digital platforms worldwide,including G,YouTube,Twitter,Instagram,Weibo,Facebook and the Gucci App.Going forward,livestreaming is going to have an increasing role to play across all kinds of omnichannel retailing,although in luxury,it has the opportunity

264、to create some interesting content that can engage younger shoppers through new channels and underpin growth and development in both digital and physical retail for years to come.THE METAVERSEWhile livestreaming is the here and now of todays luxury ecommerce,the next generation of web access is alre

265、ady starting to also come through.The metaverse is a hot talking point in many sectors yet it is in luxury where some early roll-outs have given users a potential taste of what this putative technology can deliver.The term metaverse first appeared in a dystopian cyberpunk novel called Snow Crash,wri

266、tten by Neal Stephenson in 1992.This described a 3D,virtual reality space accessed through VR googles.Today,the emerging metaverse pretty much matches this,acting as a VR-driven way to access the web.Or as metaverse investor and expert Matthew Bell says:“The metaverse is a massively scaled and inter

267、operable network of real-time rendered 3D virtual worlds which can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence,and with continuity of data,such as identity,history,entitlements,objects,communications and payments.”Wha

268、t does this offer the luxury industry?There are two ways in which luxury brands or any brand or retailer come to that can tap into the metaverse:selling virtual goods and selling real goods.The former has so far been the limit of brand involvement in the metaverse,with luxury brands looking to sell

269、virtual designer outfits and goods to use on characters within VR games.The model works pretty much as it would in real life:the luxury brand releases a limited number of outfits or items as non fungible tokens(NFTs)on the blockchain.These can then be bought and either worn or traded(creating a seco

270、nd-hand market in virtual luxury goods,but thats another story).Luxury brands have been quick to jump on this virtual world,with brands including Gucci,Louis Vuitton,Prada,Tommy Hilfiger,Burberry,Balenciage and Dolce&Gabbana all doing something in the space in 2021(see panel on page 35).The next sta

271、ge in metaverse development will involve using the virtual world to buy real-world goods,with the virtual world acting as a more realistic and interactive ecommerce platform.Here,brands will be able to create rich and immersive experiences that lead directly to sales of goods,factoring in virtual tr

272、y-ons and more.SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|THE ROAD AHEAD35|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|THE ROAD AHEADWhile this is still a year or more away,these early forays into virtual goods on the metaverse s

273、uggest that it will be an area that luxury brands are likely to look at with interest.1 https:/ https:/.au/insights/blog/gen-alpha-defined/3 www.childrenssociety.org.uk/sites/default/files/2020-11/Good-Childhood-Report-2020.pdf 4 https:/ 5 6 https:/ 8 https:/ This pop-up on Roblox allows users to ex

274、plore Guccis mythical Gucci Gardens immersive themed rooms,try on and purchase Gucci NFTs to be worn inside the game and even buy a single bag for more than$4,000 in real-world money.Louis Vuitton Celebrating what would have been founder Louis Vuittons 200th birthday,the French fashion house release

275、d a mobile game in partnership with digital artists Beeple.Titled Louis the Game,users were given an insight into the storied brand as they follow the games protagonist,Vivienne,across seven different virtual worlds inspired by real life famous fashion capitals,including London,Paris and Munich.Play

276、ers were also able to customize their avatars with a wide offering of LV prints,unveiling the history behind the famed luxury house through postcards and other memorabilia popping up along the gameplay.Burberry Burberry created a string of unique playable NFT creations called Sharky B that live in B

277、lankos Block Party from Mythical Games.The characters Luxury brands working in the metaverse include:include accessories like armbands,jetpacks and pool shoes.The creation collection sold out quickly for almost$400,000.Prada One of the more creative takes on the metaverse,Prada teamed up with Adidas

278、 Originals to task 3,000 creatives from across fashion,design and the world of cryptocurrency to create individual NFT tiles.After minting,the tiles were compiled into one NFT world by the hands of digital artist Zach Lieberman,which was then auctioned.Balenciaga Balenciaga launched its collection o

279、f clothes in Fortnite.These skins(outfits for game characters)are purchased using V-Bucks,the Fortnite world currency.V-Bucks are purchased with real money.Dolce&Gabbana Dolce&Gabbana sold its nine-piece Collezione Genesi collection on the digital luxury marketplace UNXD for$5.7mn.36|RetailX|June 20

280、23RXSLXEU23RP 2023 FiguresAnnual revenue for the Luxury market(bn),Europe,2018-22 3Average spending of the Luxury shopper by segment(),Europe,2018-22 3Revenue by channel for Luxury shopping,Europe,2018-22 4Revenue by device for Luxury shopping,Europe,2018-22 4Monthly online shopping expense,Europe,2

281、023 5Reasons for shopping online,Europe,2023 5Drivers of online luxury purchase,Europe,2023 6Expense per luxury item(),Europe,2023 6Frequency of luxury brand purchase by category,Europe,2023 7Channels used for luxury purchase in the past year,Europe,2023 8Familiarity with the metaverse,Europe,2023 9

282、Frequency of metaverse usage for retail purposes,Europe,2023 9Frequency of metaverse usage for retail purposes by generation,Europe,2023 10Frequency of metaverse usage for retail purposes by income,Europe,2023 10Agreement with sustainable luxury statements,Europe,2023 11Willingness to pay extra for

283、sustainable luxury products,Europe,2023 11Share of second-hand luxury product purchases,Europe,2023 12Share of second-hand luxury product purchases,Europe,2023 12Frequency of purchase from selected luxury brands in the past three years,Europe,2023 17Luxury brand contact in the past year,Europe,2023

284、17Annual growth of European web traffic to Farfetch(%),2018-22 18Annual growth of European web traffic to Fendi(%),2018-22 19Annual growth of European web traffic to Lancme(%),2018-22 20Number of purchases from Lancme in the past three years,Europe,2023 21Number of purchases from Lancme in the past

285、three years by generation Europe,2023 21Annual growth of European web traffic to Louis Vuitton(%),2018-22 22Number of purchases from Louis Vuitton in the past three years,Europe,2023 23Number of purchases from Louis Vuitton in the past three years by generation Europe,2023 23Annual growth of Europea

286、n web traffic to Pandora(%),2018-22 24Number of purchases from Pandora in the past three years,Europe,2023 25Number of purchases from Pandora in the past three years by generation Europe,2023 24Annual growth of European web traffic to Ray-Ban(%),2018-22 26Number of purchases from Ray-Ban in the past

287、 three years,Europe,2023 27Number of purchases from Ray-Ban in the past three years by generation Europe,2023 27Annual growth of European web traffic to Tommy Hilfiger(%),2018-22 28Number of purchases from Tommy Hilfiger in the past three years,Europe,2023 29Number of purchases from Tommy Hilfiger i

288、n the past three years by generation Europe,2023 29Annual growth of European web traffic to Tag Heuer(%),2018-22 30Annual growth of European web traffic to Vivienne Westwood(%),2018-22 31SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|FIGURES37|RetailX|June 2023RXSLXEU23RP 2023 SUSTAIN

289、ABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|END MATTERThis report may not be stored in a retrieval system,distributed or sold in whole or in part without the publishers express permission.Fair quotation is encouraged,with a link to the reports URL on RetailX.net.All charts and figures mar

290、ked with RetailX 2023 are provided under the Attribution-NoDerivatives 4.0 International(CC BY-ND 4.0)license(https:creativecommons.org/licenses/by-nd/4.0/).You are welcome to use these in full with a link to this report,retaining the copyright notice This report is based upon our reasonable efforts

291、 to compile and analyse the best sources available to us at any given time.Opinions reflect judgment at the time and are subject to change.RetailX at InternetRetailing Media Services Ltd27 Clements LaneLondon,EC4N 7AETel:+44(0)20 7062 2525 Printed in Great B RetailX 2023RESEARCH:Researcher Anna Sega

292、rra FasFor questions about our research and to send feedback,please email the team via:Research Director Martin ShawCEO Ian JindalEDITORIAL:Editor Paul SkeldonProduction Editor CamWinstanleyManaging Editor Jonathan WrightDESIGN:Art Editor Lauren CoburnCover Design Freny AntonyMARKETING:Marketing and

293、 Circulation Addison Southam SALES:Commercial Director Andy James Group Creative Solutions Director Marvin Roberts End MatterWe hope you have found our research and analysis to be of interest and value.We would be very pleased to hear from you with questions,suggestions or comments.In particular,do

294、let us know of any areas of research that you would like us to investigate for possible inclusion in the 2024 report.Please get in touch via 38|RetailX|June 2023RXSLXEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN LUXURY REPORT 2023|KNOWLEDGE PARTNERSTHANK YOUOur thanks to go our title sponso

295、r for helping us to bring our insights and findings to professionals working within ecommerce and multichannel retail.Knowledge PartnersWe would like to thank the following Knowledge Partners for their original data insights as well as support,advice and guidance in producing the RetailX European Luxury Report T