State of Luxury 2017: The Insider View Report

In the first-of-its-kind study of luxury industry executives, Luxury Daily and Unity Marketing teamed to understand the trends shaping the future of the luxury market from an industry insiders’ point of view.  More than 600 executives participated in the luxury industry insider survey.

The results, published in a new study entitled State of Luxury 2017: The Insider View, gives a bird’s-eye view of the luxury industry today, its challenges and opportunities, and where it is headed in the future.

The luxury industry is changing, and nobody knows it better than the players in the industry, both the brands and retailers that compete in the luxury market and the companies that provide support services to those brands. — Mickey ALAM KHAN, editor in chief of Luxury Daily, the world’s leading luxury business publication.
“That’s why we worked with Unity Marketing, a research firm specializing in the luxury market and affluent consumer segment, to take the pulse of the luxury industry in a formal research study,” he said from his New York base.

The survey, conducted online August and September 2016 with Luxury Daily readers and the Unity Marketing database, included samples of three key industry insider segments:

Luxury goods marketers and retailers (47 percent)
Suppliers of goods and service to luxury companies, such as advertising, media and consultants (34 percent)
Luxury experience and service marketers, such as travel, hospitality and real estate (14 percent)

Throughout the report, the results are analyzed from each players’ unique perspective.  That enables industry participants to draw conclusions about how the research findings impact their own businesses.

The results reveal that the past year has been a challenging one for luxury businesses.  Yet the executives surveyed believe their companies have strategies to respond to the shifts in the market that will enable them to overcome the headwinds they have faced.

The insiders have ambitious goals for 2017 and expect to do better over the next twelve months.  Just how they plan to do that is examined in the report.

Seven key trends shaping the future of the luxury market identified

This study uncovered seven key trends shaping the future of the luxury industry.  The most profound of which is the very definition of ‘luxury’ is shifting in the minds and lifestyles of the customers we serve. It requires equally dynamic changes in the strategies we use to market and manage luxury businesses.

These seven key trends can make, or break, future prospects for the luxury industry and the companies competing in it:

What defines luxury is changing
Internet and social media impacts
Dramatic consumer shifts
Competitive pressures
Political turmoil
Demand for innovation
Job prospects bright in luxury industry

“Companies operating in the luxury industry, the very foundation of which is to provide the best and most exquisite things and experiences to the most discerning and empowered consumers, first and foremost need the best and brightest personnel – the industry’s human capital – to prosper. — Pam Danziger, Unity Marketing

One notable finding in this study is that luxury industry insiders identify a vital need for better trained and experienced professionals resulting from the many changes, challenges and opportunities blossoming in the luxury industry.  This suggests that professionals with education and experience in the industry may find new employment opportunities over the coming year.

Editor in Chief’s Welcome
Letter from Pam Danziger, President, Unity Marketing
Executive Overview
Luxury Insiders’ Surveyed
Take Away
A Closer Look at the Luxury Goods & Services Marketers
Luxury Goods Categories
Luxury Services & Experiences Categories
Luxury Markets Competed In
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Years in Business and Competing in the Luxury Market
Years Launched in the Luxury Market
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Biggest Challenges to Growth for Luxury Goods & Services Marketers
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Selling over the Internet
Company Revenues Generated Online
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Key Trends Impacting the Luxury Market
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Trend Perspectives by Insiders’ Segment
Luxury Goods Marketers’ Trends
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Luxury Service Marketers’ Trends
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Luxury Industry Suppliers’ Trends
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Business Conditions in the Luxury Industry
Insiders’ View of Business Conditions
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Luxury Business Condition Index by Segment
Luxury Goods Marketers’ Business Conditions
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Luxury Service & Experience Marketers’ Business Conditions
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Luxury Industry Suppliers’ Business Conditions
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Advertising and Marketing Spending Trends
Current Trends in Marketing and Advertising Expenditures
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Current Advertising and Marketing Spending Trends by Segment
Expectations of Future Spending on Marketing and Advertising
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Expectations of Future Spending on Marketing and Advertising by Segment
Current vs. Future Advertising and Marketing Spending Trends
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Seven Top Trends Shaping Future of the Luxury Market
1. How the Definition of Luxury is Changing Take Action
2. Internet and Social Media Impacts Take Action
3. Dramatic Consumer Shifts Take Action
4. Competitive Pressures Take Action
5. Political Turmoil Take Action
6. Globalization Take Action
7. Demand for Innovation Take Action
How Luxury Insiders Are Finding Their Way to Growth and Prosperity
Luxury Goods Marketers’ Prospects
Luxury Services & Experience Marketers’ Prospects
Luxury Industry Suppliers’ Prospects
Final Thoughts
Luxury Marketing’s Higher Calling – From the 4P’s to the 4E’s
For More Information on the Luxury Market
Luxury Daily
About Pamela N. Danziger, President, Unity Marketing

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