China, the United States, cities, digital and the evolution of the physical store are the development trajectories indicated by Antonio Achille, from McKinsey’s analysis company, in a luxury studio elaborated for MFF. From now until 2025, China and the US will generate almost half of the sector’s growth. The growth, for Beijing, will be due to the rise and spread of wealth. In the United States, it will be because half of the richest person in the world will reside in the country. Another growth factor will be emerging cities and megacities. The 600 largest metropolises will produce 66% of the world’s wealth, and they will concentrate 60% of fashion spending. Digital will also contribute to growth. If in 2016, e-commerce generated 8% of total luxury revenue (20 billion euros in total about 250 billion), in 2025 it will reach 20%. 74 billion euros thanks also to mobile transactions. According to McKinsey, 98% of luxury consumers have a smartphone and in 2018 the time spent on mobile devices will be four times higher than that spent in front of the “old PC”. “It will be crucial for the brands to understand whether to play the game alone or to join some partners,” says Antonio Achille, who also emphasises the role of consumers as a channel of communication. “In May the official Chanel Instagram posts were 700, while the hashtags on the brand published by private individuals were about 49 million.” The challenge for luxury brands is to increase the number of customers in a context where traffic in stores is falling, and the difference between winning brands and trackers will be more and more clear. “Shops, on the other hand, should be rethought. Businesses need to ask how many stores open and where; What role they will have, whether for sale, showroom or logistic terminal for online purchase; Which should be the size of the store. ” “It can also grow by closing shops,” he concluded.
Luxury, between present and future. McKinsey traces the route to 2025. Strongholds: China, the US, the web with focus on mobile shopping
