By 2025, the main buyers of luxury brands, representing 70% of their purchases, will be generation Z and Y (young people born between 1980 and 2010), according to a study carried out by Bain & Company. This is one of the main reasons why brands have opted for a change in strategy more focused on capturing the sector of young people who start to have an age in which they generate higher income, such as Gucci, which already places 55% of its sales on buyers under 35 years of age.
Luxury products are one of the goods that have been maintained the most over the years, despite changes in the market and in consumption habits. In Europe, the luxury industry represents 4% of GDP and contributes 800,000 million euros per year. In fact, some luxury brands, such as Hermès or Chanel, closed their 2020 accounts with much smaller losses than the chain stores. fast fashion.
However, the competition to stand out among high-end companies has intensified in recent years and brands are betting on audiences with specific interests. 63% of generation Z, for example, is inclined to buy from sustainable brandsaccording to the report of Consumer Trends 2022. Another noteworthy fact is that 60% of these consumers will prefer to make purchases on social networks by 2026coinciding with the business school TBS Education – Barcelona, which has revealed that The Internet is already the most used shopping channel for luxury goods.
Finally, another great source of profit for these brands is the sale of second-hand products, a market that grew by 9% in 2020 to reach 28,000 million euros despite the pandemic and that, according to the TBS Education – Barcelona business school, it expects that in 2025 the demand for second-hand luxury goods will be double what it was in 2020. brands like Dior, Loewe, Hermès or Gucci have already tripled their demand through second-hand portal searches, reveal milanuncios.
Future of the luxury fashion market
Louis Vuitton, Dior and Chanel are some of the firms that resonate the most among young people. In fact, this first was chosen as the preferred brand in a survey of 3,000 young people in the United States, Europe and China. Its triumph is due, above all, to its success in jewelry and handbags. In Europe, and more specifically in Spain, Barcelona has become the sixth most elegant city in the worldas revealed by a study promoted by Zalando, one of the most stylish urban centers on the fashion scene.
This has awakened, especially among young people, the desire to train in fashion. In itself, the interest in studying a master’s degree is an upward trend. The total number of master’s students for the 2021-2022 academic year in Spain was 258,991 enrolled according to the latest data from the Ministry of Universities, which means a total of 10,531 more students than the previous year. This trend added to the current interest of young people in fashion, has valued training in this discipline. This is demonstrated, for example, by the MSc Fashion & Luxury Marketing program of the TBS Education business school. Since its launch, this master’s degree in fashion and luxury marketing has doubled the number of students compared to the previous year.
