Millennials hate commitment — to a degree.
Edited, a retail analysis organization reviewed Millennial consumer behavior within the luxury sector. The research uncovered that despite the falling of overall full-price sell-outs in the segment, accessories, particularly bags benefited a rise in sales.
“With its low prices and swiftly developing trends, fast fashion has facilitated this demographic’s endless switching-up of garments. But that’s not to say the Millennial shopper isn’t attuned to the finer things in life, which is where luxury accessories play a key role,” said Katie Smith, senior retail analyst at Edited.
The research reviewed data collected from 30 U.S. luxury women’s wear retailers that included over 5,000 brands in the first half of 2016 compared to the first half of this year. On the upside, the study found that luxury retail discounts decreased five percent year-over-year, suggesting that retailers are turning to updated alternatives for improved revenue gains.
According to the analysis, the top-performing brands in this year, in descending order, were Louis Vuitton, Gucci, Saint Laurent, Valentino and Dolce & Gabbana. The handbag category posted the highest boost. The research found that full-price sell-outs of the item were up 22 percent with an average price of $1,465.07.
Gucci was the big winner in the segment, marking a 595 percent increase in full-price sell-outs. “For Millennials, these kinds of items [luxury bags] represent better value as they’re a way to affiliate with a brand or lifestyle but can be worn across multiple looks and in different stylings,” Smith said. The analysis attributed Gucci’s animal, insect and reptile motifs in bright embellishments and bold colors as the main factor that appealed to the Millennial consumer.
Across other segments, scarves were up over 20 percent with an average fee of $664.12. Notably full-price sell-outs of hats were up 83 percent with an average cost of $398.55. Conversely jewelry full-price sell-outs plummeted almost 49 percent over the span of a year.
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