A new report outlines three reasons luxury retailers should be able to maintain their momentum despite today’s highly uncertain economic climate.
“The luxury sector faced major shifts over recent years from rapid inflation to slowing economic growth, continued COVID lockdowns in China, and the outbreak of war in Ukraine in 2022,” notes the report, which was prepared by consulting firm Bain & Co. and Edited, an AI-driven merchandising experience platform. “Despite these headwinds, sales have never been stronger in the luxury market.”
Here’s why, according to the report:
- Overall price distribution in the luxury market has expanded due to assortments tilting toward more luxury items since pre-pandemic times.
- Brands have reduced visible discounts by 5 percent, on average, across both men’s and women’s ready-to-wear and accessory lineups.
- Luxury brand leaders’ assortments were able to intercept fast-growing categories since the pandemic, compared to normal brands.
Click here for more from the study, titled “Three Reasons Luxury Should Remain Resilient.”