Following the unprecedented decline worldwide across all industries amidst the Covid-19 pandemic, brands within the luxury market throughout Europe, the US, and China are continuing to work hard to recover ground. As global recovery efforts continue, data demonstrates that China presents the greatest opportunity for growth and investment within the luxury sector. Recent projections reveal that once China surpasses Europe and the US to be the world’s largest luxury market, consumers in the East will account for 40% to 45% of all luxury purchases by 2025.
Overall, recovery is expected to continue throughout the next four years, with the personal luxury-goods market reverting to 6% to 8% annual growth rates until 2025. With this in mind, it is vital to note that there are vast differences from a regional perspective in the purchasing habits of consumers across different generations and markets, including searching for products, shopping and discovering new items. It is not enough for brands to simply adjust their marketing campaigns and expect to reach a new audience – they must adapt, integrate, and utilize the channels and marketing methods that are native to their target consumers.
In our fifth edition of our Top 20 Power Players Report, you will find a new quarterly analysis on the top players in luxury fashion’s leading markets, to understand which brands are excelling, what strategies they are using and the value they are generating from a regional perspective.
Media continues to be the most prominent Voice across all regions
When analyzing the most valuable Voices for luxury fashion brands across three key regions during the fourth quarter of 2021, we observed that the Media Voice remained the largest driver of value in China, Europe, and the US – representing 47%, 52%, and 59% of the total MIV® respectively. And Influencers came second in China and the US with respectively 41% and 22% of the total MIV®, whereas Owned Media came second in Europe with 26% or the total MIV®;
Influencers are the second top Voice in China and the US
That said, on average, All-Star Influencers represent the most value for global luxury fashion brands. Asia’s Influencer Tier distribution in the luxury fashion industry has changed in comparison with the third quarter of 2021, with Mid-Tier Key Opinion Leaders (KOLs) now generating the largest percentage of the total MIV®. Last quarter, Mid-Tier KOLs accounted for 18% of the total MIV® figure, a number that has doubled to nearly 36% in Q4. Europe’s MIV® split emphasizes the value of All-Star Influencers, with an increase in Share of Voice from 56% in the last quarter to 72% by the end of 2021. The Influencer Tiers in the US follow a similar trend, with All-Star Influencers driving the highest percentage of Media Impact Value.™
Check out our latest full report to get more insights