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Which luxury emerging brands have driven noticeable market changes and why?
The team here at Giant Leap Digital keeps a close watch on the luxury market, including rumblings from emerging brands.
And looking at these emerging luxury brands, there’s a recurring thread: sustainability and environmental impact.
We recently wrote about this in our article on the evolution of consumer spending in the luxury market, which highlights the growing demand from consumers for luxury brands to demonstrate their ESG credentials.
The global wealth transfer over the next 10-15 years will see substantial amounts of wealth – around $68 trillion will transfer, along with art, collectables, houses, wine/spirits etc. But we also know the next generations have different values and priorities. So will the inherited wealth maintain the status quo, or will the luxury market see a shift in tastes and preferences?
Millennials and Gen Z consumers are more inclined to support brands that share their values, including those that place a high value on sustainability, social responsibility, and environmental consciousness.
Companies such as Sourcewhere are growing in popularity, making access to new and pre-owned luxury items easier than ever. Brands such as these offer more sustainable and eco-friendly products, which might be an attractive option for younger shoppers.
But we’re also seeing some of the bigger fashion houses appealing to the Gen Z market, offering more personalised experiences with their products and services, tapping into their desire for unique and exclusive experiences and propositions.
As we’ve mentioned, there’s a significant cultural shift taking place, With consumers increasingly concerned about the impact of their purchases on the planet and society. This cultural awakening has spurred a demand for products that are not only high-quality and stylish but also ethically produced and environmentally friendly.
But it’s not just consumers who are piling on the pressure for brands to demonstrate their eminence in this arena. Various regulations and policies have been introduced by the EU and US to promote sustainability and ethical practices within the fashion world. Transparency in the supply chain, eliminating waste, and reducing the use of harmful chemicals in production are among the objectives of these regulations.
Failure to comply can result in your operations grinding to an unexpected halt (did you hear about the significant cotton shipment being held by US customs?). And of course, conscious consumers are looking well beyond brands’ disingenuous attempts at greenwashing.
Compliance with these regulations has become vitally important for brands seeking to operate in these markets, leading many companies to adopt sustainable practices in order to satisfy the requirements and expectations of regulators and consumers alike.