CONSUMERS

Highlights From The UK Luxury Benchmark Study 2015

by

Daniela Aroche

|

This is the featured image caption
Credit: This is the featured image credit

The latest UK Luxury Benchmark Study, scanning sentiment from luxury market professionals, has revealed that despite tumultuous market winds, the region is still a key luxury hub – and poised for significant growth.

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

The latest UK Luxury Benchmark Study, scanning sentiment from luxury market professionals, has revealed that despite tumultuous market winds, the region is still a key luxury hub – and poised for significant growth.

The latest UK Luxury Benchmark Study, scanning sentiment from luxury market professionals, has revealed that despite tumultuous market winds, the region is still a key luxury hub – and poised for significant growth.

Now an established report on the UK luxury market, the fifth annual UK Luxury Benchmark Study, produced in conjunction with Wealth-X (previously known as Ledbury Research) and Walpole, surveyed 68 senior luxury market professionals within Walpole’s membership, 62% of whom are either C-Suite executives or company owners.

According to the research, all signs point to growth for the UK luxury sector, with 75% of respondents to the study stating that they expected to see full year sales increase from 2014, despite the economic slowdown in emerging markets, the global exchange rate fluctuations and the uncertain geopolitical environment.

The results confirm the statistics previously highlighted in a recent article by Luxury Society focusing on the The Top 11 Luxury Hubs Of UHNWIs, which identified London as “the world capital for the super-rich, the epicenter of which is the small district of Mayfair”.

“ 75% of respondents to the study stated that they expected to see full year sales increase from 2014 ”

Additionally, respondents to the study, working in the luxury sector, also revealed that commercial confidence in the UK economy is growing, with up to 56% of companies, who responded to the study, saying that they have increased their workforce since 2014.

While London remains the country’s luxury hub, and luxury brands continue to invest in the city, rapid wealth creation in the North of England as well as the government’s significant infrastructure investment plans will provide further opportunities for luxury brands to expand their footprint. Close on London’s coat-tails is Manchester, with 34% of respondents listing Manchester as the strongest growth city outside of London, anticipating further luxury spending in the wider region.

Looking at luxury consumers, the research revealed that the USA has overtaken China to become the fastest growing source of tourist sales in the UK, however, as the importance of Chinese consumers to the UK’s luxury sector grows, so too has the pressure from brands on the UK government to simplify visa policies for Chinese visitors.

“ Respondents said they see visas as the biggest barrier in attracting international shoppers ”

Respondents said they see visas as the biggest barrier in attracting international shoppers, with obtaining visas and exchange rate volatility seen as key challenges to attracting tourists to the UK.

In response, in January 2016 – adopting recommendations made by the UKCVA – the British government launched the two-year visitor visa scheme, helping to encourage Chinese visitors to the country, which is expected to have a positive knock-on effect in the coming year.

On an internal level, the research revealed that brands continue to increase their investment in digital capabilities and their creation of engaging digital luxury narratives in order to appeal to a new generation of luxury consumers. On average, 20% of a respondent’s marketing budget is allocated to digital. 74% of respondents stated that the biggest impact of digital marketing was the ability to attract new customers. This was followed by brand building (56%) and driving online sales (41%).

Manchester: Dubbed the strongest growth city for luxury, outside of London

Commenting on the results, Michelle Emmerson, CEO of Walpole, said: “We are encouraged by the findings of the latest UK Luxury Benchmark Study, with further growth (almost unanimously) expected for the UK luxury sector. Walpole is committed to supporting the next generation of craftsmen in the industry, and so it is heartening to learn that this is of significant importance to luxury brands in the UK, as well as a focus on design excellence and authenticity.”

Wealth-X Senior Luxury Analyst, Madelaine Ollivier added that the firm sees the UK, and London particularly, retaining its status as the “go-to” luxury hub for the world’s wealthy.

“The central – location of the UK and its attractive business and fiscal environment – barring a potential exit from the EU, continues to appeal to a diverse cross-section of nationalities. London remains one of the world’s most established luxury cities and its luxury infrastructure continues to make it an exciting and dynamic place to be for both brands and consumers,” she said.

To further investigate local luxury markets on Luxury Society, we invite you to explore the related materials as follows:_

Focus: The Top 11 Luxury Hubs Of UHNWIs
India: Promised Land Of The Luxury Boom?
Taiwan: On The Verge Of Luxury Greatness?

Daniela Aroche
Daniela Aroche

Journalist & Co-Founder, The Ink Collective

Daniela Aroche is the former Editorial Director of Luxury Society, and co-founder of The Ink Collective – a full-service creative content & communications agency, specialising in the areas of fashion, luxury and lifestyle, with connections to an international network of writers, editors, photographers, translators and designers. Dually based in Paris and Sydney, Australia.

CONSUMERS

Highlights From The UK Luxury Benchmark Study 2015

by

Daniela Aroche

|

This is the featured image caption
Credit : This is the featured image credit

The latest UK Luxury Benchmark Study, scanning sentiment from luxury market professionals, has revealed that despite tumultuous market winds, the region is still a key luxury hub – and poised for significant growth.

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

The latest UK Luxury Benchmark Study, scanning sentiment from luxury market professionals, has revealed that despite tumultuous market winds, the region is still a key luxury hub – and poised for significant growth.

The latest UK Luxury Benchmark Study, scanning sentiment from luxury market professionals, has revealed that despite tumultuous market winds, the region is still a key luxury hub – and poised for significant growth.

Now an established report on the UK luxury market, the fifth annual UK Luxury Benchmark Study, produced in conjunction with Wealth-X (previously known as Ledbury Research) and Walpole, surveyed 68 senior luxury market professionals within Walpole’s membership, 62% of whom are either C-Suite executives or company owners.

According to the research, all signs point to growth for the UK luxury sector, with 75% of respondents to the study stating that they expected to see full year sales increase from 2014, despite the economic slowdown in emerging markets, the global exchange rate fluctuations and the uncertain geopolitical environment.

The results confirm the statistics previously highlighted in a recent article by Luxury Society focusing on the The Top 11 Luxury Hubs Of UHNWIs, which identified London as “the world capital for the super-rich, the epicenter of which is the small district of Mayfair”.

“ 75% of respondents to the study stated that they expected to see full year sales increase from 2014 ”

Additionally, respondents to the study, working in the luxury sector, also revealed that commercial confidence in the UK economy is growing, with up to 56% of companies, who responded to the study, saying that they have increased their workforce since 2014.

While London remains the country’s luxury hub, and luxury brands continue to invest in the city, rapid wealth creation in the North of England as well as the government’s significant infrastructure investment plans will provide further opportunities for luxury brands to expand their footprint. Close on London’s coat-tails is Manchester, with 34% of respondents listing Manchester as the strongest growth city outside of London, anticipating further luxury spending in the wider region.

Looking at luxury consumers, the research revealed that the USA has overtaken China to become the fastest growing source of tourist sales in the UK, however, as the importance of Chinese consumers to the UK’s luxury sector grows, so too has the pressure from brands on the UK government to simplify visa policies for Chinese visitors.

“ Respondents said they see visas as the biggest barrier in attracting international shoppers ”

Respondents said they see visas as the biggest barrier in attracting international shoppers, with obtaining visas and exchange rate volatility seen as key challenges to attracting tourists to the UK.

In response, in January 2016 – adopting recommendations made by the UKCVA – the British government launched the two-year visitor visa scheme, helping to encourage Chinese visitors to the country, which is expected to have a positive knock-on effect in the coming year.

On an internal level, the research revealed that brands continue to increase their investment in digital capabilities and their creation of engaging digital luxury narratives in order to appeal to a new generation of luxury consumers. On average, 20% of a respondent’s marketing budget is allocated to digital. 74% of respondents stated that the biggest impact of digital marketing was the ability to attract new customers. This was followed by brand building (56%) and driving online sales (41%).

Manchester: Dubbed the strongest growth city for luxury, outside of London

Commenting on the results, Michelle Emmerson, CEO of Walpole, said: “We are encouraged by the findings of the latest UK Luxury Benchmark Study, with further growth (almost unanimously) expected for the UK luxury sector. Walpole is committed to supporting the next generation of craftsmen in the industry, and so it is heartening to learn that this is of significant importance to luxury brands in the UK, as well as a focus on design excellence and authenticity.”

Wealth-X Senior Luxury Analyst, Madelaine Ollivier added that the firm sees the UK, and London particularly, retaining its status as the “go-to” luxury hub for the world’s wealthy.

“The central – location of the UK and its attractive business and fiscal environment – barring a potential exit from the EU, continues to appeal to a diverse cross-section of nationalities. London remains one of the world’s most established luxury cities and its luxury infrastructure continues to make it an exciting and dynamic place to be for both brands and consumers,” she said.

To further investigate local luxury markets on Luxury Society, we invite you to explore the related materials as follows:_

Focus: The Top 11 Luxury Hubs Of UHNWIs
India: Promised Land Of The Luxury Boom?
Taiwan: On The Verge Of Luxury Greatness?

Daniela Aroche
Daniela Aroche

Journalist & Co-Founder, The Ink Collective

Daniela Aroche is the former Editorial Director of Luxury Society, and co-founder of The Ink Collective – a full-service creative content & communications agency, specialising in the areas of fashion, luxury and lifestyle, with connections to an international network of writers, editors, photographers, translators and designers. Dually based in Paris and Sydney, Australia.

Related articles

CONSUMERS

5 Must Know Facts About China’s Millennials

CONSUMERS

Report: Decoding Luxury Marketing Milestones in China: Lunar New Year

CONSUMERS

In 2024, expect more of the same. Now is the time to optimise.