Vogue Business updates Global Luxury Fashion Index

Vogue Business has published the Spring 2021 of its annual Vogue Business Index - a data-driven analysis of the world’s top luxury fashion brands. The Index is built on data from across more than 200 metrics, with exclusive insights from 7,000 global luxury consumers who are Vogue and GQ readers.

The Index reveals that luxury consumers’ desire to spend on fashion appears to be increasing, but brands must retain a focus on omnichannel as high-end shoppers have become accustomed to the convenience of online. Gen Z is set to dominate as the consumer category most likely to increase luxury spending in the next six months, closely matching the optimism of millennials with disposable incomes.

Louis Vuitton, having scored highest in 2020, remains at the top of the Index as the most recognisable luxury brand. Gucci is the most recognised brand by Gen Z and also considered a leader by consumers in providing accountability. Again, the Index shows the value placed by consumers on the timelessness of heritage brands such as Hermès and Chanel, and this is reflected through purchase intent data. The biggest mover is Coach, a brand increasingly top-of-mind for consumers, particularly in the US.

• Consumer spending: Consumers’ willingness to spend heavily on luxury is returning. One in six high-end shoppers expect to increase their spend on luxury fashion over the next six months, nearly double the rate in October 2020. Data from the Index shows that Gen Z and millennials are the age groups that expect to increase spending the most on luxury over the next half-year.

• Gen Z: The percentage of Gen Z luxury shoppers saying they plan to increase spending on luxury fashion over the next six months has risen from 11% in late 2020 to 19%, the highest share across all age groups. Gen Z consumers in the US, UK and South Korea lead the way, with 38% expecting their spend on luxury fashion to increase, ahead of other age groups and nearly 2.5 times the global average. Gucci is the most recognised brand with Gen Z consumers.

• Omnichannel: Brands should focus on the integration of offline and online channels, as luxury consumers will expect a seamless cross-channel experience. Two-thirds of luxury consumers say speed of delivery is important when ordering products. Brands have invested in delivering cross-channel returns in response to luxury shoppers consistently rating this as among the most important considerations when making purchases — 81% said as much this year, with its importance ranked even higher among older age groups.

• In-store shopping: Much of the focus so far has been on making customers feel safe. Data suggests that brands have done enough on this front: since last October, there has been a 20% rise in luxury shoppers who feel stores are safe and are happy with the precautions being taken.

• ESG: A global average of 62% of consumers say that sustainability is an important factor when making purchases. Expectations on brands and consumer awareness around labour rights, particularly in light of Covid-related order cancellations and job cuts, are also growing, and our data shows brands are lagging on this.

The Vogue Business Index launched in Spring 2020, and the dataset is updated biannually. The Index is for Vogue Business members only and designed to help brands and those working or investing in the luxury sector to compare brand performance and analyse the mix of factors driving which brands have momentum and why. Its development was overseen by an advisory panel of experts drawn from leading financial and professional services firms with expertise in consumer goods and luxury sectors and industry experts.

Find out more about the Index here and become a Vogue Business member here.

Note: All consumer sentiment data in the Vogue Business Index is based on a survey of luxury consumers (annual spend on luxury fashion -$2,500) carried out between March and May 2021 and includes participation from more than 7,000 Vogue and GQ consumers across 13 markets, who provided 27,000 brand responses.