TRENDREPORT:LUXURYBRANDSONLINE2018TRENDREPORT:LUXURYBRANDSONLINE20181TRENDREPORT:LUXURYBRANDSONLINE2018Thetransformationhasbeenoneofnotonlyphysicalchange,seenintheprogressivedesigns,stylesandrepresentationsofluxuryfashiontoday,butalsoadeeperculturalshifthappeninginsideeventhemosttraditionalluxuryhouses.TomaintainrelevancewiththepowerfulMillennialdemographic,thesectorislearningtopivotfromtheultra-exclusivetoanewkindofinclusivethatemphasizesnotonlythebrand,butalsotheindividualconsumer.Thereismorerisk-takinghappeninginthesector,andwhilesomeinitiativeshaveresonatedmorethanothers,thesechangescollectivelyillustrateluxury’simperativetoevolve.TRENDREPORT:LUXURYBRANDSONLINETRANSFORMATIONISADEFININGTHEMEFORTHELUXURYPERSONALGOODSMARKETIN2018.CasualwearAgrowingnumberofluxurybrandsarecateringtoyoungeraudiences–particularlyolderGenZandyoungerMillennials--withavarietyofcasualwearofferingslikesneakers,sweatshirtsandbeltbags.1Streetwearishavingamajormomentintheluxuryspace,inlargepartdrivenbyyoungconsumers’desiretodefineaversionofluxurybuiltonstyleandcomfort.FromtheSupremecollaborationtotheappointmentofVirgilAblohasartisticdirectorformenswear,LouisVuittonhastakenamajorstakeinthestreetweargame,andinturn,madeamajorstatementaboutthetraditionalluxuryspaceasweknowit.OtherslikeChanelandGucciasserttheirinfluenceintherealmofsocialmedia,bringingtheirbrandstolifethroughvibrantvideosandsocialmediacontent.Asinyearspast,socialcontinuestobeanessentialchanneltoreachluxury’smostvitalonlineinfluentials.Bainpredictssteadygrowthingloballuxurysalesoverthenextfiveyears.Thisbodeswellforluxurybrandstocontinuetoexplorethechangingworldsofmodern,sophisticatedconsumers,andactwithintentionthroughinvestmentsinnewcreativetalent,technologyandbusinessprocesses.Followingsomewhatlacklustergrowthin2017,theluxurysectorisnowenjoyingaresurgence.Bain&Co.projectsgrowthtorangefrom6-8%in2018,totaling$313billioninglobalsales,withtheUnitedStatesmaintainingthelargestshareofthemarketat30%.AndthoughourstudyencompassesU.S.dataonly,wecannotoverlookglobalgrowthandinfluence,particularlyoftheChineseluxuryconsumer.Whileluxuryhassometimesapproacheddigitalwithtrepidation,moreandmorebrandsaremakingadecisiveshifttowardembracingandusingdigitalchannelstoengagecustomers.Whereonlinewasonceoneofthesector’smostintensedisruptors–andstillmaybeforsome–itisnowgeneratingawaveofnewtacticsforcustomergrowth,communitybuildingandcollaborativestorytelling.TechnologyDiorteamedupwiththeCGIcharacterandInstagraminfluencernoonoouri(94K+followers).ThevirtualinfluencerhasmodeledfashionandalsodidatakeoverofDior’sInstagramtopromotethebrand’sresort2019show.PersonalizedFendiBagBugs,LouisVuittonBadgesandGucciDIYarejustafewofthewaysluxurybrandsarecapitalizingonanincreaseddesireforuniquecustomization.2MOMENTSOFGROWTH,INSPIRATION&CONNECTIONNOTABLESLOUISVUITTONstartedafashionfrenzywiththenewsthatitsnewartisticdirectorofmenswearwouldbeVirgilAbloh,founderandcreativevisionarybehindthelabelOff-White.Hiswell-praiseddebutatMen’sFashionWeekinParisonlybuildsontheleathergoodsmaker’smountainofsuccesswithmonogrammedbags.LOEWEdesignerJonathanAnderson’splayfullypointy“dinosaur”sneakersforSpring2018weremadeforInstagram(intentionallyornot).Butsomethingmoresubduedliesbehindthebrand’seye-poppingsocialgrowthonYouTube:inabehindthescenespeak,Loewe’sParisrunwaymodelstrytopronouncethebrand’snamesakewithhumorouslymixedresults.Atonceatutorialandbrandre-introduction,therefreshinglyaccessiblevideoremainsLoewe’smostpopularYouTubevideobyfar,generating2MMviews–nearlyhalfofthechannel’slifetimeviews–injustafewmonths.SiteTraffic(visits)22.1MM↑37%YoYYouTube(views)197.4MM↑63%YoYInstagram24.5MM↑38%YoYFacebook22.9MM↑18%YoYSiteTraffic(visits)182K↑34%YoYYouTube(views):3.6MM↑3965%YoYFacebook:605K↑806%YoYInstagram:980K↑47%YoYQUICKSTATS12MO.QUICKSTATS12MO.32018MOMENTSOFGROWTH,INSPIRATION&CONNECTIONGUCCI,underitsequallygame-changingcreativedirectorAlessandroMichele,droveKeringtoitsmostprofitableyeareverin2017–andsofar2018isalsoslidingintoaverygoodyearwithimpressivegrowthinreportedrevenue,sitetraffic,andmarketshare.Socialaudiencesandengagementshavelikewiseswelled.MONCLERfloutedfashion-weekconventionsbydroppingeightnewcollectionsthroughouttheyear,teamingupwithvariousdesignersandcreativetalentsunderthemonikerMonclerGenius.Unexpectedcollaborationsandtheincreasedpaceofreleasesaimssquarelyatyoungerconsumers,borrowsapagefromthesneakerheadplaybook,andmeetstoday’simperativetocontinuallysurpriseanddelightinanupdate-obsessedworld.Trafficnumbersandsocialstatsreflectthis.SiteTraffic(visits)17.8MM↑72%YoYYouTube(views):65.8MM↑62%YoYInstagram:24.5MM↑54%YoYFacebook:17.2MM↑25%YoYSiteTraffic(visits)921K↑41%YoYYouTube(views):9.3MM↑95%YoYInstagram:1.5MM↑76%YoYQUICKSTATS12MO.QUICKSTATS12MO.4WebtraffictoluxurybrandsitesisupYoY,fueledbyanespeciallyrobustHoliday2017period.Thetopluxurybrandsremainconsistentfrompreviousyears,withthetop5brandsaccountingforamajorityoftraffictotheluxurycategoryoverall(approximately64%).Forthesecondyearinarow,Guccisawthegreatestincreaseintotalwebsitev