Market Trends of United Kingdom Luxury Goods Industry
This section covers the major market trends shaping the UK Luxury Goods Market according to our research experts:
Rising Affinity for Vegan Leather Goods
Sustainable fashion is a new concept emerging across many European countries including the United Kingdom. Modern consumers are looking for environment-friendly fashion accessories and prefer more purpose-driven brands. This led to the emergence of sustainable leather replacements made from a variety of materials, including pineapple fibers, apple scraps, palm leaves, and even wine. These materials are designed to resemble the texture and tensility of animal leather, and come in a variety of colors and textures. Therefore, major brands like Hermes, Bottega Veneta, Tommy Hilfiger, Chloé, etc are designing products made up of 'vegan leather' to target eco-conscious consumers. For instance, in March 2021, Hermes announced the launch of its vegan bag called Victoria, the travel bag, which is traditionally made of Hermes' gritty Clemence calfskin and is now available in Sylviana, a mushroom-derived leather substitute. Additionally, Tommy Hilfiger recently launched leather shoes which are high-quality leather made from recycled apple peel fibers.
Emergence of E-commerce
With the rising adoption of the digital economy in the country, e-commerce has emerged as an alternate shopping platform for UK customers in recent years, shaping new user interactions, disrupting business models, and creating new growth opportunities for both single and multi-brand stores of luxury goods. Consumers now engage with most brands through their own branded online stores and multi-brand e-tailers.
Moreover, luxury goods buyers are now influenced by the information available on social media and other digital platforms. As a result, leading luxury brands such as Louis Vuitton, Chanel, and Gucci, have been rushing to embrace the digital landscape, whether by partnerships with multi-brand sites, like Farfetch, the creation of their own websites, or a combination of the two. Furthermore, with the improving logistics capabilities, faster delivery, and hassle-free returns, single and multi-luxury brand retailers are making customers feel more at ease with online purchases, which is driving the overall growth of the luxury goods market in the country.
