This Week Obsession: Why We Buy Luxury
Quality Remains Number One Factor in Consumers Choosing Luxury
Recently in our More Luxury Club blog we have been writing about the state of the personal #luxury goods industry, that many believe is in a crisis of late. A recent report from the RetailX analysed European Luxury retail and e-commerce to explore the what, why, where and how Europeans’ buy luxury goods. Their conclusion is the sector is still buoyant with a small downturn in 2023 vs. 2022. That's good news for luxury brands and retailers.
The number one reason why consumers buy luxury? For 92% of consumers, it is quality that drives them to buy, far ahead of other factors, including brand reputation (63.2%) and fashionableness (42.3%). We believe this is partly because it's a "shortcut" for people to make buying decisions without a lot of research. GenZ's remain the largest cohort buying luxury which aligns with other research.
Another key insight is that 79.5% of all European luxury shoppers are interested in buying sustainably. While consumer data shows that 31.5% of European shoppers say that they wouldn’t pay more for #sustainableluxury, the remaining 68.5% – more than two thirds – say they would.
Furthermore, European luxury shoppers recognise the significant resale value of luxury goods, driving the market towards more unique and collectible pieces that hold potential for future resale.
This is also a factor driving the growing market for second-hand luxury, itself fuelled and fuelling the rise of sustainability in the sector and among consumers.
Despite this, a significant portion of consumers, 37.8%, purchase luxury items primarily as gifts rather than for resale. This trend strongly influences consumer interactions with luxury brands in Europe. Gifting remains the leading reason for purchasing luxury online, outpacing motivations like social media influence and promotional offers.
Nonetheless, social media plays a crucial role in consumer engagement with luxury brands. Activities such as liking products, following brands, sending direct messages, and making purchases through social platforms collectively drive a substantial amount of interaction. This highlights the importance of social media and social validation as key sales drivers, suggesting that brands should focus on these channels for marketing.
When it comes to choosing luxury brands online, European consumers prioritise reliability, with 72.8% citing it as a crucial factor. Product availability (60.8%) and easy return policies (55.9%) also rank high, more so than shopping experience (39.8%) and brand aesthetics (39.3%).
The retail sector is responding to this demand through outlet stores offering off-season luxury fashion and marketplace sites specialising in luxury and second-hand items, such as Secret Sales and Vinted. Platforms like Depop combine the appeal of second-hand items with the resale value of luxury goods.
High prices remain a significant barrier for European consumers, with 63.1% identifying cost as the primary obstacle to purchasing luxury items, ahead of finding cheaper alternatives.
Interestingly, 55.4% of consumers seek discounts and offers when buying luxury items, indicating a growing interest in affordable luxury. Many consumers aim to find bargains on well-known, high-end luxury goods, demonstrating a clear desire for luxury at more accessible prices.
All of this points to consumers adopting new models of consumption. Shika Bodani and I believe strongly that the time is now for co-ownership to become the way people will own and access luxury goods in the future. Rental is a fantastic model for wearing something once, traditional ownership works well for things you wear all the time (try to buy pre-loved), but for items you wear on rotation co-ownership makes it more affordable and sustainable. Let us know your takeaways. Find our How it Works.
Designer Bag Trends for Autumn/Winter 24-25
It feels too early to start thinking about what bags we'll be carrying this Autumn but it's mid-July and before we know it, the time will be here for autumn fashion. For those of us living in the UK, we are still in autumn, but that's another story.
What are the top trends we'll be showcasing this A/W 2024 - 25? And what do we have our eye on that will make it into next month's voting? Due to the all-over range of winter's handbag trends, we are relying on Marie Claire who tapped Celenie Seidel, the Senior Womenswear Lead of Farfetch, to help make sense of the styles. Ahead are the seven leading bags you can expect to see everywhere this season:
1. Fluffy or Furry
"The past year in fashion has introduced us to a fluff and fuzz mania of sorts, with the deep pile texture appearing across myriad accessories," says Seidel. "Perhaps the ASMR IRL experience or the comfort of a furry friend on the go has made the highly textural pieces such a sensation."
2. Considerable Carry Alls
“A take-your-life-with-you approach, the super scaled-up XL-XXXL totes of the season will render you the person who is prepared for all occasions," details the Farfetch expert. In this particular case, bigger certainly is better.
3. Soft & Slouchy
Here's where some of that aforementioned stealth wealth style comes into play. “The slouchy noughties classic, the hobo, is back for 2023/24, revived in elevated, richly textured iterations, speaking perfectly to a certain kind of coveted ‘undone’ elegance," explains Seidel. The key here? You want your slouchy style to look as if it's been thoroughly lived-in and been by your side for many, many moments.
4. Quality Quilting
Here's your chance to match your purse to your puffer coat—something you only have the opportunity to do during the winter season. You can go classic with a traditional top-hand style like Tory Burch's, or, for more of a contemporary feel, try an unexpected shape like Balenciaga's rhombus-shaped clutch or Miu Miu's Arcadie (which is a favorite amongst the A-list ilk, including Gigi Hadid).
5. Chain Reaction
"Suitable for a shift away from quiet luxury into a moment that welcomes more a decorative approach, chain-adorned bags create a seamless merging of the bag and jewelry categories," offers the Farfetch expert. "Victoria Beckham's now signature chain embellished bags are chicly grown up and put together, their chains reminiscent of gold watch straps."
6. Mirror, Mirror
Don't shy away from flash this winter—you deserve the attention! Pick up a chrome style like Published By's sculptural bag that doubles as a work of art or more of an everyday shoulder bag like the affordable option from JW Pei. Go full-tilt disco and pair your high-shine bag with a Studio 54-inspired 'fit.
7. Walk on the Wild Side
These animal-printed purses are for those wild at heart. Our personal favorites for the season are Jacquemus's sleek and tidy shoulder bag and STAUD's classic Tommy style beaded into a striking zebra pattern.
Here are a few of the bags we've curated for next month's voting. Top picks become September's Fab5.
Mirror, Mirror - Bottega Veneta Small Sardine
Considerable Carry All - YSL Large Bowling Bag
Soft & Slouchy - Khaite Medium Lotus Tote
Love It or 'Hate' It - Charmification
Each week we look at the trends that we either embrace or we rather give it a pass. We've named this section, Love It or 'Hate' It because most of the time, these trends evoke strong reactions from the team.
Oftentimes, embellishment is fun and light-hearted — a light-lift way of personalising an otherwise generic look. Other times, it’s a means of communicating a stance: at New York Fashion Week, attendees pinned flag brooches to handbags. Embellishments are a simple way of communicating identity through fashion.
The infamous bag charm is rearing its Y2K head. The accessory for your accessory is back, and it's taken centre stage on our TikTok pages, on the catwalk, and now - in your shopping cart.
As ever, social media has a hand in all this. Besides the influence of runway collections, the trend is additionally fuelled by TikTokers using “Jane Birkinfy” handbags to express and develop personal aesthetics, says Kayla Marci, senior analyst at EDITED. “Jane Birkin bag” currently sits at 122.3 million posts. On Pinterest, searches for bag charms are up 274 per cent year-on-year.
Gen Z's re-discovery of the bag charm hardly comes as a surprise. With the rise of DIY, and a growing appreciation for upcycling, the re-emergence of the bag charm is emblematic of the young generation's desire to bring individuality into everything, differentiating themselves from the collective through their style, even more so than generations gone past. And it's working.
We're definitely not fans of the charmification trend. While we understand the desire to personalise your designer bags, we often feel the trend can be taken too far taking away from the beauty of the bag. What's your view? WhatsApp us and let us know.
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