2022
9
UK Consumer Attitudes towards Luxury Market Report 2022
2022-09-06T04:05:46+01:00
OX1101831
2995
155457
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Report
en_GB
“Consumers are facing extreme rising costs and subsequent squeezes on their wallets. While luxury purchases may seem like the obvious first choice to be cut from consumer spending, research from…

UK Consumer Attitudes towards Luxury Market Report 2022

$ 2,995 (Excl.Tax)

Description

The UK Consumer Attitudes Towards Luxury Market Report identifies luxury consumer typologies, purchasing drivers for luxury goods and the impact of the cost of living on the UK luxury market. This report covers the UK luxury market size, market forecast, market segmentation and trends in the UK luxury market.

Current Landscape of the UK Luxury Goods Market

The cost-of-living crisis means it will be necessary for many consumers to cut back spending and will make big-ticket luxury purchases less attainable for the average consumer. However, pent-up demand for novel experiences after the pandemic and a renewed appreciation for experiences over material things will help drive the experiential UK luxury market.

Meanwhile, supply chain disruptions and high production costs have been exacerbated by the conflict in Ukraine, making for difficult operational circumstances for the UK luxury goods market.

UK Luxury Market Share and Key Industry Trends

Younger consumers are the most likely to be active buyers in the UK luxury market in the coming year. However, lower earnings among this group mean this will typically be for more attainable versions of luxury, such as in beauty and personal care. Younger consumers’ typical lack of significant wealth will still be a barrier to purchase for ultra-expensive luxury goods, which will be exacerbated by rising costs and budget pressures.

  • 70% of UK adults describe luxury as ‘premium quality’.
  • 22% of consumers have bought a luxury product in the past 12 months from the beauty and personal care category.
  • 44% of shoppers have bought luxury goods from a store in the last 12 months.
  • 23% of consumers would be interested in buying products made with sustainable methods.

Future Trends in the UK Luxury Goods Market

Many major brands in the UK luxury market have made progress in improving their impact on the environment in recent years through investment in more sustainable materials and methods of manufacturing.

However, just 9% of consumers associate luxury with being sustainable, highlighting a significant opportunity for the UK luxury goods market to communicate sustainability initiatives more clearly and use eco credentials to stand out from competitors.

To discover more about the UK Consumers Attitudes Luxury Market Report 2022, read our UK Designer Fashion Market Report 2021or take a look at our extensive Financial Services Market Research.

Quickly Understand

  • Factors impacting the UK luxury goods market.
  • Luxury consumer typologies.
  • How consumers define luxury.
  • Purchasing of luxury products and experiences in the last year, and likelihood of purchasing in the next year.
  • How consumers purchase luxury goods.
  • Consumer attitudes towards the UK luxury market.
  • Explores the luxury market share and luxury market size.

Covered in this Report

Brands: John Lewis, Selfridges, Depop, Brand Alley, YSL, TK Maxx, Harrods, Klarna, Louis Vuittom, Gucci, Burberry, Oxfam, Dior, Alto, Vestiaire Collection, Moet Hennessy, Lancôme, White Desert, Stella McCartney, Aston Martin, ASOS.

 

Expert Analysis from a UK Retail Specialist

This report, written by Francesca Smith, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends in the UK luxury market and add expert context to the numbers.

While luxury purchases may seem like the obvious first choice to be cut from consumer spending, research from previous economic downturns, such as the 2008-09 recession, has shown that the UK luxury market tends to hold up well. This is largely due to consumers’ desire to continue to treat themselves, particularly through smaller luxury purchases, even when budgets are tightened. This time round, there is the added factor of the pent-up demand for new experiences and the desire to make up for lost fun over the pandemic, which will drive interest, particularly, in the experiential UK luxury market.”

Francesca Smith
Research Analyst

 

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
  2. Executive Summary

    • The market
    • Inflation is the key concern for consumers and luxury brands in 2022
      • Figure 1: Household issues faced by consumers in the last two months, 2022
    • Luxury market should be able to weather the cost-of-living crisis
    • Online channels see major growth for luxury purchases
    • The consumer
    • Quality is the defining feature of luxury
      • Figure 2: Consumer definition of luxury, 2022
    • Over half of all adults are luxury shoppers
      • Figure 3: Purchase of luxury products and experiences in the last year, 2022
    • Consumers show sustained interest in purchasing luxury in the next year
      • Figure 4: Likelihood of purchasing a luxury product or experience in the next year, 2022
    • Online surpasses in-store for luxury shopping
      • Figure 5: Purchasing channels of luxury products, 2022
    • Consumers are luxury shopping via brand and department store websites
      • Figure 6: Online purchasing of luxury products, 2022
    • Department stores are most popular in-store channel for luxury
      • Figure 7: In-store purchasing channels of luxury, 2022
    • Circular, sustainable initiatives appeal the most to luxury shoppers
      • Figure 8: Interest in luxury shopping concepts, 2022
    • Luxury is about quality, rather than exclusivity
      • Figure 9: Attitudes towards luxury and quality, 2022
    • Owning luxury is more accessible than it has ever been
      • Figure 10: Attitudes towards luxury and accessibility, 2022
    • Luxury as a marker of success and style
      • Figure 11: Attitudes towards luxury and exclusivity, 2022
  3. Issues and Insights

    • The luxury market will weather the cost-of-living storm
    • It’s all about quality
    • Experiential luxury trend accelerates post-pandemic
    • Sustainability can help luxury brands stand out from competitors
  4. Market Drivers

    • Inflation is the key concern for consumers and brands …
    • … and will weigh down the post-COVID recovery
    • The conflict is Ukraine is hurting the UK economy in a number of ways
    • Consumers’ financial wellbeing has fallen from the highs of 2021 …
      • Figure 12: Household financial wellbeing index, 2016-2022
    • … and most people are feeling the effects of price rises
      • Figure 13: Household issues faced by consumers in the last two months, 2022
    • Luxury market should be able to hold up during consumer slowdown
    • Online channel growth for luxury
    • Sustainability rises up the consumer agenda
  5. Luxury Consumer Typologies

    • The Status-Seeker
      • Figure 14: Luxury consumer typologies, 2022
    • The Quality-Seeker
      • Figure 15: Luxury consumer typologies, by age and gender, 2022
    • The Luxury Bargain Hunter
    • The Indifferent Luxury Shopper
  6. Defining Luxury

    • Luxury centres around quality
      • Figure 16: Consumer definition of luxury, 2022
    • Young adults are more diverse in their definition of luxury
      • Figure 17: Consumer definition of luxury, by age, 2022
    • Brands need to shout louder about sustainability benefits
  7. Purchase of Luxury Products and Experiences

    • Half of adults have purchased luxury in the last year
      • Figure 18: Purchase of luxury products and experiences in the last year, 2022
    • The rise of immersive dining experiences
    • Gen Z are most likely to say they have bought luxury in the last year
      • Figure 19: Purchase of luxury products and experiences in the last year (NET), by Generation, 2022
  8. Likelihood of Future Luxury Purchases

    • Consumers expect to keep treating themselves
      • Figure 20: Likelihood of purchasing a luxury product or experience in the next year, 2022
    • Luxury travel can fulfil consumers’ desire for new experiences
    • Males are more interested in functional luxury, while females prefer indulgence
      • Figure 21: Likelihood of purchasing selected luxury products or experience in the next year, by gender, 2022
    • Brands can build relationships with Gen Z by matching their values
      • Figure 22: Likelihood of purchasing a luxury product or experience in the next year (NET), by generation, 2022
  9. Luxury Purchase Channels

    • Online driving luxury sales
      • Figure 23: Purchasing channels of luxury products, 2022
    • Duty-free shopping suffers in the pandemic
  10. Online Luxury Shopping

    • Luxury brands investing in own online stores
      • Figure 24: Online purchasing of luxury products, 2022
    • Under-25s are driving second-hand luxury
      • Figure 25: Online purchasing of luxury products, by age, 2022
  11. In-store Luxury Shopping

    • Department stores are the favourite among luxury shoppers
      • Figure 26: In-store purchasing channels of luxury, 2022
    • The blurring of lines between luxury shopping and a luxury experience
    • Brand stores can create personalised ‘phygital’ experiences for young consumers
      • Figure 27: In-store purchasing channels of luxury, by age, 2022
    • Discount stores will be more appealing amidst rising costs
  12. Luxury Shopping Behaviours

    • Sustainability is a priority for luxury shoppers
      • Figure 28: Interest in luxury shopping concepts, 2022
    • Luxury brands need to prove sustainability efforts
    • Personal interaction paired with technology can create highly personalised in-store experience
    • Luxury brands are pushing forward with digital innovation
    • … but interest in AR/VR shopping remains very concentrated
      • Figure 29: Interest in virtual try-on features when luxury shopping, by gender and age, 2022
  13. Attitudes Towards Luxury Shopping

    • Quality, rather than exclusivity, is the defining feature of luxury
      • Figure 30: Attitudes towards luxury and quality, 2022
    • Owning luxury is becoming more accessible
      • Figure 31: Attitudes towards luxury and accessibility, 2022
    • Luxury as a marker of success
      • Figure 32: Attitudes towards luxury and exclusivity, 2022
    • Personalisation is an important feature of luxury products and experiences
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

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