Luxury Brands: Re-calibrating Brand Strategies for A Changing World

Luxury brand, the byword for superior quality, is all set to brave its new sectors outside luxury brand boutiques. 

In 2020, ending in uncertainty, turbulence, and even downturn, the global luxury market contracted 15%, like all other sectors. With an estimated 20% to 30% of industry revenues coming from purchases made abroad, the sector was hit hard by travel restrictions imposed during the onset of pandemic and which persist today, albeit to a lesser degree.

In contrast to the past, the diversification move comes after the turbulent digital age means increased reliance on social media. Brands brave new sectors, surfacing in unexpected places, embracing these young consumers, and adopting augmented reality (AR) and virtual reality (VR) technologies.

The fashion industry in the context of the post-pandemic situation is becoming popular for customizing everything. There are signs that blockchain is being considered by the luxury industry as an anti-counterfeiting measure. Furthermore, among the top three high-risk factors in domain names arbitration and litigation, the inclusion of a trademark in its entirety in the domain name is the fastest growing high-risk factor.

Under the shadow of the depression of some retailers, there still inllustates the shifts in the market. Europe and the Americas, historically the largest regions for luxury sales, were surpassed by Asia for the first time in 2020. As the data collected, 41% of litigation filed by luxury brands is in Asia.(Figure7)

For the fashion industry, the key to industry chain sustainability is raw materials. Sustainable fashion is not only a “Green Trend”, but also an important driver of the entire industry chain. Luxury, and fashion in particular, has been slower than other sectors in advocating sustainability, ethical manufacturing and transparent supply chains. 

 With raw materials accounting for 70% of the environmental impact of the entire supply chain, the core for sustainable fashion is exploring and using sustainable new fabrics. Sustainable consumption will undoubtedly become an important direction for fashion brand building and continued profitability in the future business world.

In this bold yet unpredictable new world, people became more value-concious. And brand IP and analytics propell the luxury sector into the future whether ready or not. 

Clarivate™, a global leader in providing solutions to accelerate the lifecycle of innovation, supporting with a more "labor-saving" creative delivery methods. They introduce a data-driven approach to inform strategy and decision making as luxury brand owners strive to evolve, differentiate and protect their luxury brand identities. For us, it was an accelerator, and got us closer to some long term objectives.

This is an redacted excerpt of the original report. Read the full article at the link down below here.

Source: Clarivate™

Editor: IPRdaily-Rene