Luxury company executives resoundingly believe that the luxury market is headed for a reset. Some 56% of the 400+ luxury insiders surveyed expect business conditions in the luxury market to get worse in 2023 given the headwinds of inflation, the banking crisis and a potential recession.
And even more troubling, nearly three-fourths believe their companies are only somewhat or poorly prepared for a potential recession. This according to the State of Luxury 2023 report just released by Unity Marketing in association with Luxury Daily and The Home Trust International.
One clear-eyed luxury company insider said, “I feel it will get slower before it gets better. We have not hit bottom yet.”
The State of Luxury 2023 report will help luxury companies prepare for what’s ahead in 2023 with actionable takeaways drawn from the survey results, including:
- How to add the exponential power of word-of-mouth marketing to luxury company’s advertising mix. This is especially important since social media gets near failing grades, with only 8% of companies on average reporting it as very effective. Even the most effective channel, Instagram, is very effective for 24% of the insiders’ companies.
- With a slowdown expected in companies’ revenues, budget cuts will be inevitable. This study will help managers make judicious budget decisions that will cut the fat and preserve the lean in their operations.
- How to keep from being blindsided by cognitive biases every human is prone to.
- How the luxury customer journey is changing and ways for luxury companies to stay on their path.
- How to inspire greater brand loyalty with research into the affluent consumers’ brand loyalty equation. And how to keep the virutuous circle of brand reputation and brand loyalty working for your luxury company.
- How to find the deeper meaning in your brand and communicate it effectively to affluent consumers.
- With affluent’s wealth under threat, how luxury companies can stay out in front.
The 130-page report in easy-to-read and digest Powerpoint format includes trend tracking from 2020 through 2023 to show how insider’s views of the luxury market, its challenges and opportunties have changed over that time period.
All told, the survey sample includes 43% of respondents working in the luxury goods sector, 30% in the luxury services and experiential sector and 20% that provide support services to luxury companies in advertising, marketing, media and consulting. Others include academics and other industry observers.