Fashion industry report highlights key trends
Discover key fashion industry trends in the 2024 report on emotional ties driving luxury brand appeal in the US and China.
A new report from McKinsey & Company and BoF Insights finds that emotional ties now drive brand appeal in the US and China, though the reasons differ between the two largest luxury markets.
The study, The State of Fashion: Face to Face With Luxury Clients, surveyed over 2,000 luxury shoppers across spending tiers, along with interviews from executives at Chanel, Jessica McCormack, Urban Jürgensen, and ICICLE.
In the US, emotional connection has risen alongside self-expression and personal identity, while status symbols and logo recognition have lost influence. In China, emotional appeal leads, but recognition and social confidence remain important, reflecting luxury’s role in social standing.
Related: Five Essential Skills You’ll Learn in Cosmetology Classes
Growth will not be simple.
Luxury clients are also doubting artificial scarcity. Waitlists and limited editions are now seen as marketing tactics rather than proof of value. Shoppers instead favor insider communities and loyalty rewards. In the US, 40% say early drops and exclusive perks create a sense of exclusivity. In China, bespoke and personalized service ranks as the top driver of exclusivity, especially among Gen X customers.
Experiences now compete with goods as a measure of luxury value. About 30% of clients in both markets would prioritize travel if given extra discretionary income. In the US, 45% cite wellness-related activities as a top interest, while in China, physical stores remain the primary source of shopping inspiration—though poor in-store experiences frustrate US shoppers.
AI and resale are changing how clients engage with brands. 46% of established luxury clients in the US and China use AI for shopping inspiration, with 54% using it to evaluate brands. The trend is strongest in categories like watches, where 57% rely on AI for research.
Resale is no longer just a budget option. 59% of higher-spending US clients regularly buy pre-owned luxury, with half citing the thrill of the hunt as their main motivation. In China, where the resale market is less developed, authenticity remains the primary concern.
Imran Amed, founder and CEO of The Business of Fashion, stated that brands have focused too narrowly on top spenders. “Brand desirability cannot be manufactured through price or scarcity,” he noted. “It has to be earned, market by market, client by client.”
Gemma D’Auria, a senior partner at McKinsey, said luxury clients seek inspiration and connection.
