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Read the Vogue Business Index: H2 2024
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Technology
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Retail
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Retail
Chanel defies luxury’s slowdown
Purchase intent remains steady despite the economic landscape, while the perception of quality is under fire in the latest Vogue Business Index.
Sustainability
Gucci and Bottega Veneta fight to defy the industry’s rollback on ESG
Brands are failing to reach sustainability targets while consumer-facing circularity schemes are prioritised, according to the Vogue Business Index.
Key takeaways:
- Purchase intent is still there. Consumers still want to buy luxury even if they currently don’t feel like they have the means to do so. That means brands, especially those currently under relaunch, shouldn’t read too much into the performance of current collections. The ideas may be great, even if the market is not yet ready.
- Is luxury worth it? High-end shoppers are increasingly sceptical about the “value for money” offered by top luxury brands. Executives would be unwise to view this as sour grapes from aspirational consumers who no longer feel they can afford high-end clothing. If consumers take longer to get a foothold in the luxury sector through aspirational brands, it may mean a longer delay before they build up to buying from the most expensive ones.
- Culture is king. Maintaining positive brand associations is difficult in the current market, but some brands have managed to do so. These power players typically have an ambitious marketing approach, positioning themselves as a prominent part of the cultural landscape through film, art and music partnerships.
Brand desire is up, despite a gloomy economic picture
The luxury downturn continues to disappoint leading brands as sluggish sales momentum seems to affect all, bar a select group of businesses. Discretionary spending is an increasingly low priority for many high-end customers these days, but the latest survey data shows that these consumers still have some pent-up desire to spend big on designer fashion.
