Luxury Brands Online€¦ · LUXURY DEMOS YOUNGER WITH MORE MEN Male online visitors to luxury...

Luxury Brands Online2018 Trends Report

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Speakers

John FettoSenior Analyst

Hitwise

Agenda

1. Top Brands and Drivers

2. Luxury on Amazon

3. Search and Social

4. Hot ProductsGlenn Lalich VP, Research

PMX Agency

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LUXURY AS BUSINESS

$313 BILLION GLOBALLY

30% IN U.S.

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LUXURY AS BRAND

QUALITY & CRAFTSMANSHIP

CAPTIVATING & RESILIENT

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TRANSFORMATION IS A DEFINING THEME FOR THE LUXURY PERSONAL GOODS MARKET IN 2018

Digital Creativity Personalization Casualwear

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LUXURY DEMOS YOUNGER WITH MORE MEN

Male online visitors to luxury brand sites

up nearly 10%.

Age Visits Share Representation

18-24 9.9% 146

25-34 10.6% 110

35-44 8.7% 100

45-54 8.5% 95

55-64 9.3% 106

65+ 7.4% 91

Luxury Brands

Female

Age Visits Share Representation

18-24 8.6% 121

25-34 9.6% 98

35-44 7.4% 88

45-54 7.5% 84

55-64 7.3% 90

65+ 5.6% 85

Luxury Brands

Male

Gender Visits Share Representation

Male 45.7% 93

Female 54.3% 106

Luxury Brands

Luxury sites are attracting younger visitors.

GENDER

AGE

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Balenciaga

Site Visits Up 107%

50% Men

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LUXE NOTABLES

New Millennial-Aged Creative Directors (Virgil Abloh, Jonathan Anderson)

Site Traffic Up, YouTube Views Up, Facebook Up, Instagram Up

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TOP LUXURY BRANDS

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ONLINE MARKETSHARE BY BRAND

Michael Kors and Ralph Lauren retain the top

online market shares

among luxury brands.

Overall, the top 10 brands account for the

majority (75%) of all

traffic to the luxury

category.

15.9%

13.7%

11.9%

11.6%

9.6%

4.9%

3.8%

2.0%

1.6%

1.6%

1.6%

1.5%

1.5%

1.2%1.1%

1.0%0.9%

0.8%0.8%

12.7%

Michael Kors

Ralph Lauren

Louis Vuitton

Coach

Gucci

Chanel

Burberry

Hermès

Versace

Dior

Saint Laurent Paris

Prada

Louboutin

Ferragamo

Tom Ford

Balenciaga

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GROWTH IN ONLINE VISITS

Site May 2017Last 12 Months

May 2018Last 12 Months

YoY

Variance

Gucci 10,389,039 17,833,366 7,444,327

Louis Vuitton 16,126,054 22,122,722 5,996,668

Michael Kors 26,628,091 29,415,664 2,787,573

Chanel 6,952,733 9,156,047 2,203,314

Coach 19,623,487 21,505,450 1,881,963

Balenciaga 884,408 1,826,694 942,286

Prada 1,935,759 2,859,869 924,110

Burberry 6,222,545 7,121,177 898,632

Saint Laurent Paris 2,147,252 2,955,031 807,779

Versace 2,218,410 2,999,657 781,247

YOY VARIANCESite May 2017

Last 12 Months

May 2018Last 12 Months

YoY

% Growth

Isabel Marant 46,545 122,475 163%

Balenciaga 884,408 1,826,694 107%

Marchesa 70,620 145,147 106%

Pierre Hardy 10,340 18,975 84%

Gucci 10,389,039 17,833,366 72%

Bally 431,449 723,845 68%

JW Anderson 44,263 74,052 67%

Givenchy 414,128 684,109 65%

Giuseppe Zanotti 442,056 726,820 64%

Jil Sander 54,182 85,994 59%

YOY GROWTH

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DIGITAL BEHAVIORSCLICKSTREAM

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SOURCES OF TRAFFIC TO LUXURY BRANDS

Search Engines

49.7%Shopping Sites

21.4%

Luxury Brands

Louis Vuitton 1.5%

Gucci 0.4%

Burberry 0.3%

Prada 0.3%

Michael Kors 0.3%

Chanel 0.2%

Coach 0.2%

Furla 0.1%

Tod’s 0.1%

Versace 0.1%

Other Shopping Sites

Amazon 1.1%

Macy’s 1.0%

eBay 0.9%

Nordstrom 0.6%

Neiman Marcus 0.5%

Ebates 0.4%

Deal Moon 0.4%

Saks Fifth Avenue 0.3%

Brad’s Deals 0.2%

Walmart 0.2%

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ENTRY AND EXIT TRAFFIC FOR LUXURY BRANDS

Exit Traffic to

Shopping Sites38.9%

Entry Traffic from

Shopping Sites21.4%

Entry Traffic from

Amazon1.1%

Exit Traffic to

Amazon2.4%

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Luxury Brands…on Amazon?

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Luxury Brands…on Amazon!

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Luxury Brands on Amazon: Top BrandsMichael Kors is the top shopped; Versace is the best selling

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Pu

rch

ase

s

Pa

ge

Vie

ws

Page Views Purchases

170,000 purchases

4.4 million page views

*Total page views and purchases November 2017-September 2018

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Luxury Brands on Amazon: Top ProductsFragrances represent 24 of the top 25 luxury products

Versace Eros Eau de Toilette Spray for Men,

3.4 Fluid Ounce

370K views/21K purchases 192K views/18K purchases

Versace Bright Crystal By Gianni Versace For Women.

Eau De Toilette .17-Ounce Mini

141K views/17K purchases

Versace Bright Crystal Eau de Toilette Spray for Women, 3

Ounce

*Total page views and purchases November 2017-September 2018

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Luxury Brands on Amazon: Top ProductsMichael Kors products represent the top non-fragrance products

Michael Kors Slim Runway Watch

80K views/3.3K purchases 10.7K views/1.4K purchases

Michael Kors Access Magnetic Charger for Smartwatches

35.7K views/1.3K purchases

Michael Kors MK5004 1017R1 Gold Chelsea Aviator Sunglasses

Lens Category 2 Lens *Total page views and purchases November 2017-September 2018

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Luxury Brands on Amazon: Internal SearchGucci surpasses Michael Kors for branded search share

Share of all Amazon internal searches containing 15 luxury brands; September 2018

18%

15%

15%

13%

9%

6%

6%

5%

5%

3%3%2%

Gucci

Michael Kors

Coach

Ralph Lauren

Chanel

Versace

Dior

Louis Vuitton

Prada

Burberry

Tom Ford

Yves Saint Laurent

Top Gucci searches:

• Gucci belt

• Gucci

• Gucci belt replica

• fake Gucci• Gucci shirt

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Luxury Brands on Amazon: Internal SearchTop luxury keywords used in Amazon searches

Share of all Amazon internal searches containing 15 luxury brands; September 2018

fake

purse(s)

replica

bag(s)

sunglasses

eau

wallet(s)

cologne

shoes

glasses

watch(es)

perfume

shirt(s)

belt(s)

handbag(s)

|

-

20,000

40,000

60,000

80,000

100,000

120,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Page views Purchases

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Luxury Brands on Amazon: SeasonalityMonthly luxury products page views and purchases

15% of purchases occurred in November; 32% in

December

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DIGITAL BEHAVIORSSEARCH

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SHARE OF CLICKS ON BRAND NAMES

68.9%

5.5%

2.7%

1.1%

0.6% 2.3%

4.9%

3.2%

10.9% Luxury Brands

Department Stores

Online Stores

Pre-Owned

Off-Price & Private Sale

Other Shopping

Social Media

Wikipedia

All Other

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SHARE OF CLICKS ON BRAND + HANDBAG

30.4%

16.3%

14.1%

15.6%

2.9%

1.9%

3.3%

5.4%

10.1% Luxury Brands

Department Stores

Online Stores

Pre-Owned

Off-Price & Private Sale

Affiliate

Other Shopping

Social Media

All Other

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SHARE OF CLICKS ON BRAND + SHOES

24.8%

21.9%

18.0%

7.3%

4.6%

3.3%

2.6%

6.2%

11.3% Luxury Brands

Department Stores

Online Stores

Pre-Owned

Off-Price & Private Sale

Affiliate

Other Shopping

Social Media

Other non-Shopping

gucci shoes

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TOP KEYWORDS & PRODUCTS

Apparel Keywords Search Clicks % Paid

shirt 1.1% 39%

dress 0.8% 49%

jacket 0.6% 43%

shirts 0.6% 43%

jeans 0.3% 48%

dresses 0.3% 56%

coat 0.3% 51%

clothing 0.3% 42%

pants 0.3% 48%

suit 0.2% 40%

sleeve 0.2% 49%

sweater 0.2% 41%

denim 0.2% 47%

shorts 0.2% 50%

hoodie 0.2% 39%

suits 0.2% 27%

trench 0.1% 49%

clothes 0.1% 37%

sweatshirt 0.1% 39%

jackets 0.1% 61%

FOOTWEAR

Footwear Keywords Search Clicks % Paid

shoes 2.4% 48%

sneakers 0.8% 46%

slides 0.6% 49%

sandals 0.4% 56%

boots 0.3% 40%

loafers 0.2% 49%

heels 0.2% 43%

flip flops 0.2% 59%

shoe 0.1% 30%

flats 0.1% 56%

sneaker 0.1% 37%

pumps 0.1% 43%

espadrilles 0.1% 46%

sandal 0.1% 50%

slip ons 0.1% 40%

slippers 0.1% 33%

platform 0.1% 52%

loafer 0.1% 44%

heel 0.1% 41%

wedge 0.1% 58%

APPAREL

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PROFILING THE CASUAL LUXURY SHOPPER

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SEARCHED FOR VARIATIONS INCLUDING: “HOODIE,” “SWEATSHIRT,” “SNEAKERS,”

“SLIDES,” “BELT BAG” OR FANNY PACK

VISITED: LUXURY SITEAND

18-24

+1.5X

“Aspirational

Fusion”

+1.6X

Student

+1.5X

500,000

Americans/5% of

luxury shoppers

Celebrity-

influenced

+1.4X

Early

adopters

+1.2X

Gamers

+1.4X

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PROFILING THE CASUAL LUXURY SHOPPER

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SEARCHED FOR VARIATIONS INCLUDING: “HOODIE,” “SWEATSHIRT,” “SNEAKERS,”

“SLIDES,” “BELT BAG” OR FANNY PACK

VISITED: LUXURY SITEAND

+3X

+2.5X

+1.7X

+1.6X

+1.5X+2.5X

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SOCIAL

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SOCIAL MEDIA PLATFORMS YOY GROWTHThe number of luxury social media followers grew by over 20% in the past year.

YOY GROWTH IN FOLLOWERS677 MILLION FOLLOWERS

+20%

+23%

+11%

+20% Overall

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Instagram Followers

346,961,28251%Facebook Likes

225,102,87133%

Twitter Followers105,099,990

16%

LUXURY SOCIAL AUDIENCE 2018

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HIGH ENGAGEMENT

244K views

400K likes 250K likes

200K likes

Luxury Sneakers Founder Stories

185K likes

600K likes

Celebrities

Collaborations

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LUXURY BRANDS & INSTAGRAM

Many luxury brands now see larger followings on

Instagram compared to

Facebook.

Chanel 28,051,561 0.42%

Louis Vuitton 24,548,440 0.42%

Gucci 24,493,601 0.58%

Dior 19,695,779 0.39%

Dolce & Gabbana 16,188,925 0.36%

Prada 15,565,012 0.20%

Versace 12,684,393 0.58%

Michael Kors 11,755,041 0.38%

Burberry 11,560,213 0.25%

Louboutin 10,990,247 0.31%

Givenchy 10,527,549 0.25%

Armani 10,525,775 0.28%

Valentino 10,311,148 0.17%

Fendi 9,277,377 0.39%

Jimmy Choo 8,197,757 0.62%

Balmain 8,165,087 0.50%

Ralph Lauren 7,946,919 0.34%

Marc Jacobs 7,241,398 0.25%

Tom Ford 7,157,172 0.44%

Hermès 6,705,091 0.30%

Balenciaga 6,380,150 0.83%

Moschino 6,299,075 0.36%

Alexander McQueen 6,099,306 0.58%

Chloé 6,017,594 0.32%

Miu Miu 5,219,643 0.32%

Instagram ProfileMay

2018 Followers

Avg Engagement

Rate per Post

Stella McCartney 4,977,647 0.33%

Roberto Cavalli 4,642,994 0.24%

Karl Lagerfeld 4,463,826 0.80%

Saint Laurent Paris 4,307,324 0.59%

Alexander Wang 4,175,883 0.43%

Giuseppe Zanotti Design 3,965,852 0.61%

Lanvin Paris 3,648,217 0.13%

Salvatore Ferragamo 3,156,014 0.32%

Oscar de la Renta 2,814,608 0.62%

Coach 2,710,929 0.80%

Manolo Blahnik 2,459,351 0.65%

Maison Margiela 2,218,303 0.60%

Marchesa Fashion 2,106,126 0.60%

Diane von Furstenberg 1,730,676 0.18%

Kenzo 1,710,173 0.45%

Emilio Pucci 1,607,120 0.26%

Moncler 1,513,538 0.57%

Bottega Veneta 1,285,581 0.40%

Isabel Marant 1,247,756 0.44%

Jean Paul Gaultier 1,159,285 0.59%

Marni 1,144,819 0.34%

Tod's 1,038,519 0.42%

Furla 997,337 0.70%

Loewe 980,430 0.50%

3.1 Phillip Lim 870,921 0.18%

Aquazzura 836,547 0.75%

Instagram ProfileMay

2018 Followers

Avg Engagement

Rate per Post

Stella McCartney 4,977,647 0.33%

Roberto Cavalli 4,642,994 0.24%

Karl Lagerfeld 4,463,826 0.80%

Saint Laurent Paris 4,307,324 0.59%

Alexander Wang 4,175,883 0.43%

Giuseppe Zanotti Design 3,965,852 0.61%

Lanvin Paris 3,648,217 0.13%

Salvatore Ferragamo 3,156,014 0.32%

Oscar de la Renta 2,814,608 0.62%

Coach 2,710,929 0.80%

Manolo Blahnik 2,459,351 0.65%

Maison Margiela 2,218,303 0.60%

Marchesa Fashion 2,106,126 0.60%

Diane von Furstenberg 1,730,676 0.18%

Kenzo 1,710,173 0.45%

Emilio Pucci 1,607,120 0.26%

Moncler 1,513,538 0.57%

Bottega Veneta 1,285,581 0.40%

Isabel Marant 1,247,756 0.44%

Jean Paul Gaultier 1,159,285 0.59%

Marni 1,144,819 0.34%

Tod's 1,038,519 0.42%

Furla 997,337 0.70%

Loewe 980,430 0.50%

3.1 Phillip Lim 870,921 0.18%

Aquazzura 836,547 0.75%

Instagram ProfileMay

2018 Followers

Avg Engagement

Rate per Post

Stella McCartney 4,977,647 0.33%

Roberto Cavalli 4,642,994 0.24%

Karl Lagerfeld 4,463,826 0.80%

Saint Laurent Paris 4,307,324 0.59%

Alexander Wang 4,175,883 0.43%

Giuseppe Zanotti Design 3,965,852 0.61%

Lanvin Paris 3,648,217 0.13%

Salvatore Ferragamo 3,156,014 0.32%

Oscar de la Renta 2,814,608 0.62%

Coach 2,710,929 0.80%

Manolo Blahnik 2,459,351 0.65%

Maison Margiela 2,218,303 0.60%

Marchesa Fashion 2,106,126 0.60%

Diane von Furstenberg 1,730,676 0.18%

Kenzo 1,710,173 0.45%

Emilio Pucci 1,607,120 0.26%

Moncler 1,513,538 0.57%

Bottega Veneta 1,285,581 0.40%

Isabel Marant 1,247,756 0.44%

Jean Paul Gaultier 1,159,285 0.59%

Marni 1,144,819 0.34%

Tod's 1,038,519 0.42%

Furla 997,337 0.70%

Loewe 980,430 0.50%

3.1 Phillip Lim 870,921 0.18%

Aquazzura 836,547 0.75%

Instagram ProfileMay

2018 Followers

Avg Engagement

Rate per Post

MOST FOLLOWERS HIGH ENGAGEMENT

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LUXURY BRANDS & FACEBOOKMany luxury brands continue to see large followings on Facebook.

Louis Vuitton 22,885,823 0.14%

Chanel 21,384,693 0.13%

Michael Kors 17,851,927 0.04%

Burberry 17,335,034 0.02%

Gucci 17,249,094 0.01%

Dior 16,474,055 0.04%

Dolce & Gabbana 11,387,217 0.02%

Ralph Lauren 9,067,580 0.02%

Armani 8,307,857 0.04%

Coach 7,225,743 0.02%

Prada 6,444,622 0.04%

Versace 5,137,567 0.07%

Jimmy Choo 3,631,207 0.09%

Louboutin 3,338,924 0.09%

Hermès 3,022,142 0.03%

Moncler 2,970,177 0.03%

Saint Laurent Paris 2,931,025 0.05%

Valentino 2,819,705 0.02%

Givenchy 2,790,584 0.04%

Fendi 2,633,368 0.03%

Roberto Cavalli 2,382,781 0.03%

Chloé 2,089,409 0.03%

Marc Jacobs 2,008,104 0.03%

Alexander McQueen 1,964,533 0.05%

Tom Ford 1,779,347 0.08%

Facebook PageMay

2018 Likes

Avg Engagement

Rate per Post

Ferragamo 1,767,936 0.04%

Longchamp 1,532,894 0.01%

Balenciaga 1,383,956 0.11%

Miu Miu 1,259,344 0.02%

Tod's 1,195,753 0.09%

Oscar de la Renta 1,162,483 0.03%

Hogan 1,145,123 0.02%

Jean Paul Gaultier 1,074,293 0.02%

Karl Lagerfeld 1,056,864 0.10%

Moschino 1,043,870 0.11%

Furla 1,011,424 0.08%

Diane von Furstenberg 1,000,241 0.02%

Kenzo 955,682 0.03%

Stella McCartney 922,477 0.07%

Giuseppe Zanotti 843,648 0.48%

Balmain 842,027 0.22%

Alexander Wang 841,381 0.04%

Bottega Veneta 741,859 0.07%

MCMworldwide 714,285 0.05%

Escada 692,067 0.05%

Lanvin Paris 683,436 0.03%

Trussardi 628,797 0.04%

Loewe 604,692 0.00%

Bally 572,091 0.07%

Dunhill 569,783 0.15%

Facebook PageMay

2018 Likes

Avg Engagement

Rate per Post

There has been notable YOY growth for brands like Longchamp and Furla

Ferragamo 1,767,936 0.04%

Longchamp 1,532,894 0.01%

Balenciaga 1,383,956 0.11%

Miu Miu 1,259,344 0.02%

Tod's 1,195,753 0.09%

Oscar de la Renta 1,162,483 0.03%

Hogan 1,145,123 0.02%

Jean Paul Gaultier 1,074,293 0.02%

Karl Lagerfeld 1,056,864 0.10%

Moschino 1,043,870 0.11%

Furla 1,011,424 0.08%

Diane von Furstenberg 1,000,241 0.02%

Kenzo 955,682 0.03%

Stella McCartney 922,477 0.07%

Giuseppe Zanotti 843,648 0.48%

Balmain 842,027 0.22%

Alexander Wang 841,381 0.04%

Bottega Veneta 741,859 0.07%

MCMworldwide 714,285 0.05%

Escada 692,067 0.05%

Lanvin Paris 683,436 0.03%

Trussardi 628,797 0.04%

Loewe 604,692 0.00%

Bally 572,091 0.07%

Dunhill 569,783 0.15%

Facebook PageMay

2018 Likes

Avg Engagement

Rate per Post

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LUXURY BRANDS & FACEBOOK

Longchamp / Kendall Jenner

1.5 M followers

Furla / Mothers

1 M followers

LIKE COUNTS OF 1MM+

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Holiday Hot Products

37

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Holiday Hot Products

38

Top products overall: First week of November 2018

Nintendo Switch

Apple WatchVans Fitbit

Roku iPhone XRXbox Instant Pot

|

Holiday Hot Products

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Trending fashion products: First week of November ‘18 vs ‘17

Teddy coat

+526%

(2.6K

people)

Men’s rings+207%

(2.2K

people)

Gucci flip flops

+262%

(3.7K

people)

Men’s hoodies

+219%

(1.4K

people)

Sherpa jacket

+161%

(1.8K

people)

Blazers+141%

(6.6K

people)

MAGA hat+313%

(3.5K people)

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FINDINGS & IMPLICATIONS

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KEY TAKEAWAYS

• Luxury Reinvented – The significant growth in online visitors, social followers and sales create a clear picture for what can be achieved as luxury keeps embracing change and new ways of thinking.

• Millennially Minded – Winning the Millennial generation has been a priority in the luxury sector for several years. Their influence, behavior and values continue to drive luxe positioning, product development and strategy.

• Casual Chic – Luxury fashion is having a casualwear moment. Sweatshirts, belt bags, slip-on shoes and slides are showing heightened levels of search interest, and this casual trend is cultivating new audiences, markets and revenue streams for luxury brands. Correspondingly, male luxury site visits are up significantly as well.

• Search Matters More Than Ever – With competition growing and evolving across the board – from online and department store partners, sellers of preowned luxury goods, and even premium streetwear and luxe-adjacent designer goods – luxury brands must own every touch point with the consumer.

• Amazon is an Emerging Luxury Channel – While luxury brands are primarily selling fragrances through Amazon, search activity suggests a desire to buy more luxury apparel and accessories than they’re finding.

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Thank You!

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