What: Coresight looks at the top 10 trends which are shaping up the Luxury industry today.

Why it is important:  Wholesale partners are becoming less attractive to luxury brands in the Direct to Consumer working frame that has been developed during the pandemic. The creation of communities and the ability to engage them is a new race that might help wholesalers (department stores) to remain in the game in the future.

Coresight determines the top 10 trends for global luxury in 2021:

• Sustainability will become essential
• Brands will turn to localized strategies to replace dependence on travelers
• Digital storefronts will be prioritized
• Store fleets will come under close scrutiny
• To capitalize on shoppers’ shift to online, more brands will internalize operations
• Brands will turn away from the wholesale channel
• Accessories and jewelry will be given greater prominence in brands offerings
• Brands will seek to take control of the resale of their secondhand products
• Marketing strategies will use smaller-scale influencers and geninfluencers
• China will become the dominant luxury market

When it comes to the shift away from wholesale partners, Coresight considers that the long store closures imposed by the Covid-19 pandemic allowed brands to strengthen their Direct-to-consumer capabilities. This will be even further accelerated by online marketplaces such as TMall Luxury Pavilion or JD.Com which make the management of the digital e-stores easier than managing wholesale accounts. This movement away from wholesale partners will be growing as soon as brands manage to transform their social media presence, from the current megaphone model to a medium allowing them to create and engage communities directly without having to rely on wholesale partners.

Key Luxury Trends Coresight Research Analysis Coresight Research