Nearly three-quarters (73%) of customers who purchase Lancôme products on Amazon are new to the brand, Cyril Chapuy, the head of L’Oréal’s luxury division, said on the company’s Q4 earnings call. And like it or not, many labels are already sold on Amazon through the “gray market,” or unauthorized third-party resellers.

In an era marked by rapidly evolving consumer expectations, investing in technology has transitioned from a luxury to a critical necessity for online retailers aiming for growth in 2024. Despite economic uncertainties, a CommerceNext and Forrester retail outlook survey found that 42% of online retailers plan to make digital investments in their businesses in 2024.

But in the US, the biggest store that consumers are going to, according to our survey, is Walmart, which isn't surprising, but it's also not that luxury beauty store. But they are leaning into luxury beauty, right? Sky Canaves:.

The resulting bag is a mishmash of some of the most popular luxury handbags on the market—the Hermès Birkin, the Celine Luggage bag, the Dior Saddle Bag, and the Balenciaga Hourglass—made by four different factories in four different countries.

It is a luxury. Yeah, I mean it's just cost prohibitive at this point. Paul Verna (30:22):. And if you do like to go see concerts, you've probably blown your annual budget on Taylor Swift or. Rahul Chadha (30:29):. The stone. I was going to say, how much did Taylor Swift skew that average? Because I imagine her and Beyonce probably have pretty expensive tickets. Yep. Marcus Johnson (30:38):. Rahul,.

Luxury resale has been growing at a much faster pace than the overall luxury retail sector. The global market for pre-owned luxury goods was forecast to reach €43 billion ($45.21 billion) in 2022, according to Bain & Company and Altagamma’s annual luxury study. That’s more than double the market’s size in 2017.

It is a luxury. Yeah, I mean it's just cost prohibitive at this point. Paul Verna (30:22):. And if you do like to go see concerts, you've probably blown your annual budget on Taylor Swift or. Rahul Chadha (30:29):. The stone. I was going to say, how much did Taylor Swift skew that average? Because I imagine her and Beyonce probably have pretty expensive tickets. Yep. Marcus Johnson (30:38):. Rahul,.

Fashion resale platform Depop, sneaker sites like StockX and GOAT, and luxury marketplaces Watchfinder build on thriving communities of enthusiasts to drive sales. More Amazon sellers are actively looking for additional sales channels.

Some 15% of US consumers have made cross-border purchases of luxury goods, per ESW’s June 2022 survey. High shipping costs and slow delivery are the leading obstacles. Forty-four percent of US respondents would likely abandon a purchase if the shipping was too expensive, while 41% would abandon it due to “lengthy or costly delivery time,” per Global-e.

Loud budgeting is the opposite of quiet luxury, per Battle. Quiet luxury is about spending lots of money on a minimalist look. Loud budgeting encourages consumers to open up about how they spend their money and take pride in saying no to unnecessary purchases. What does it mean for retailers?

Landlords expect this trend to continue and have been investing in luxury homes to attract wealthier renters. Those offering high-end houses will also be more likely to mandate renters insurance. To see the full forecast, click here.

The category is also still benefiting from the so-called “lipstick effect,” as shoppers splash out on small luxuries to cheer themselves up. But food and beverage sales are still dropping. The UK health, personal care, and beauty category will reach £15.69 billion ($19.33 billion) by the end of 2027. We predict the category will grow by an average annual rate of 4.6% over the next five years.

For example, it recently aquired TCGplayer, a collectibles marketplace, and invested in Cudoni, a UK-based luxury resale platform. Facebook’s lead in US social commerce is largely due to secondhand sales. More than half of respondents in Morning Consult’s survey had used Facebook’s P2P channel.

And for consumers who don’t want to splurge, there’s a dupe for every luxury brand product. Beyond beauty, the maximalist approach applies to every aspect of the mob wife trend. Head-to-toe gold jewelry is a must. Animal prints are another staple, specifically leopard, tiger, or any other large cat. And the hair?

You can tune in tomorrow to hang out with Sara Lebow, host of the Reimagining Retail Show, where she'll be speaking with Sky Canaves and Zak Stambor all about luxury.

The move, which dovetails with the brand moving into beauty in 2014 and its launch of pet and kids categories in 2022, is the latest step in its bid to become a “complete lifestyle luxury accessories player,” CEO Alexis Mourot told WWD. Does it make sense?

The phenomenon is characterized by a willingness to splurge on luxury or nice-to-have beauty products amid economic headwinds, like the current cost-of-living crisis. The lipstick effect is back in action—and it’s evolving. As we’ve seen during previous recessions, retailers such as John Lewis and Boots are reporting an uplift in sales of affordable luxuries like lipsticks, mascaras, and eyeliners.

While it makes sense for Ralph Lauren to lean into luxury, transforming its brand perception will take time.

The focus has shifted from NFT art and collectibles to blockchain-based applications with more practical functions, such as authentication for luxury goods and connecting to loyalty programs and membership perks. However, Porsche continued branding efforts around its luxury collectible NFTs, despite a very niche market consisting of Web3 enthusiasts who can afford to purchase expensive digital art.

Gucci entered resale earlier this year by partnering with luxury resale platform Vestiaire Collective. The brand encouraged consumers to take their Gucci bags to participating stores for evaluation. Then, customers could sell the items for store credit.

Not everyone feels the pain: Despite rising prices, higher income and younger consumers continue to spend on luxury. That trend is helping luxury sales continue to soar. 76% of consumers with an income of $200,000 or more plan to purchase the same or even more luxury items in the next three months than they did in the past three months, per the Saks Luxury Pulse survey of luxury shoppers.

And remember, different demographic groups all have their own definition of small luxuries. Careful distinction of essentials and affordable luxuries among different consumer groups can introduce more nuanced pricing strategies in different markets, neighborhoods, and social groups. Cultivate and retain a customer base with better values.