Opportunities and Trends for UK Luxury Brands: 2023 and Beyond
Individuals from many different industries have benefited from the close relationships they have developed with the members of the EAGB. These relationships have resulted in new business deals and assistance from other industry experts within the group resolving ongoing business operational issues. Individuals from the luxury goods industry in the UK can also benefit from the broad cross industry experience that would be available to them as a member of the exclusive EAGB. Read on to find out more abut how we believe the EAGB could help your luxury goods business.
The UK is a leader in the personal luxury goods market, both in Europe and across the world. According to the British luxury trade association, Walpole, whose 250 members include brands such as Alexander McQueen, Harrods and Burberry, in 2019 the value of this market to the UK economy was £48bn.
In 2020, with severe restrictions on travel and closure of shops, the personal luxury goods market worldwide collapsed with the largest year-on-year drop in value for 25 years – a 23% decline and a loss of $79bn. It may take until 2024 for the sector to regain 2019 levels.
Good news! Current trends indicate opportunities for brands to grow dramatically post-Covid19, if they:
- Connect with consumers who are re-evaluating spending habits. By engaging with those who opt for conscientious rather than conspicuous consumption, firms will avoid a potential decrease in brand values.
- Maintain relevance by aligning messages to real consumers concerns regarding supply chain, landfill, and sustainability. These are perceived as major issues by current and future generations of customers.
- Deal with market volatility by focusing on those regions, such as China, where consumer spend is growing.
- Embrace e-commerce. Traditionally, luxury brands have hesitated to embrace ecommerce believing that ‘luxury’ and ‘exclusivity’ equate to bricks and mortar and physical interaction with consumers.
- Remain alert to changes to international fiscal rules to ensure compliance with what is a complex and constantly evolving area.
- Innovate. By attracting fresh skills, such as AI, data analysts and other digital talents whose ideas will impact and rejuvenate their business, brands can transform into online spaces while maintaining their luxury cache.
- Increase marketing budgets while preserving and managing cash flow. Past global economic downturns have shown brands that continue to market grow their market share.
- Combat the decrease in global luxury travellers, who account for up to 30% of sales, by focusing on local markets and enhancing their presence in major regional cities.
How EAGB members can help
The EAGB is an association of business leaders, many have enjoyed senior positions in the corporate field before starting their own successful firms. As seasoned business leaders, we have dealt with difficult and complex challenges and weathered economic storms, and can help your business too.
We understand the demands and challenges that face businesses in the luxury goods market and can use our experience, specialist knowledge and extensive connections to provide peer-to-peer support and exchange advice and information.
We help members and visitors with effective solutions and connections they can trust whatever the size and nature of business, from start-up and early stage to mature.
A wealth of corporate experience and skills at your finger tips
Within the EAGB there are corporate lawyers with specialist legal knowledge, from compliance and regulation to employment and litigation.
Developing your teams? We have training, HR and recruitment professionals among our members.
Whether it’s investment or boardroom gravitas and expertise, our members are, or have excellent relationships with, NEDs, financial experts and investors.
Need help growing and marketing your business?
If your biggest headache is positioning and raising the awareness of yourself, your luxury brand or products, we have the solutions. Our membership includes sales/growth strategists, market researchers, brand and web designers, copy writers, PR professionals, digital marketeers, and brand and marketing strategists.
Finally, if you are thinking of selling and exiting your luxury brand business – we can help with that too!
The Executives’ Association of Great Britain has a wide-reaching network and our members’ global connections provide unparalleled introductions.
Why not find out more? Join one of our business lunches.
You will be able to hear some interesting speakers, make great connections and build a network of supportive business associates.