U.S. luxury fashion brands continue to underperform in sales growth and profitability. They have lagged behind other consumer sectors in adjusting to the new world defined by tech savvy millennials. As the gap between winners and losers continues to widen, brands are pressing ahead with new strategies including digital innovation, cost cuts, and acquisitions.
Success in the next decade requires brands to be more innovative and proactive in reaching out to younger generations, said Shawn Grain Carter, associate professor at the Fashion Institute of Technology in New York.
The younger generation is becoming more important, as millennials (born between about 1980 and 1995) and Generation Z (born between about 1996 and 2010) will represent 45 percent of the global personal luxury goods market by 2025, according to a study by consulting firm Bain & Co.
And more importantly, the “millennial state of mind is increasingly permeating across all generations,” noted the study.
