Digital is no longer just an option − it is key to survival.
9. Innovation must be innovated, with luxury brands taking cues from startups
Innovation is the driving force behind growth, but global luxury brands have had difficulty bringing innovation to market quickly. Their global scale and high-scale workmanship are less of a competitive advantage than the agility that is required by the modern consumer. Consumers expect a range of on-trend products that respond to their needs, and multichannel, tech-enabled engagement and interaction with brands.
10. Sustainability matters in the fashion industry
In recent years, investors have demonstrated a growing interest in nonfinancial information – including the social and environmental impacts – to evaluate potential investment opportunities and manage risks, and stock exchanges are increasingly using ESG indices (environmental, social and governance).
11. It’s time luxury embraces digital
The digital disruption from machine learning, artificial intelligence, big data, predictive analytics, e-commerce and blockchain is influencing the industry. But the luxury market has historically been slow to action. Better use of data, connected planning, revolutionizing operations and engaging with e-commerce can help.
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Premium and entry-to-luxury fueled growth, due to increased casualization and a mix-and-match approach to styling, and the growth of digital-influenced everything, from store formats to marketing. Customers, increasingly from emerging markets, expect an optimum experience, and companies are diversifying their approach to meet this need. The brands that know how to ride this evolution will continue to thrive.