EXCERPT

CONTENTS

Vogue Business Index

Luxury Fashion

SPRING 2021
VOGUE BUSINESS INDEX LUXURY FASHION CONTENTS

Foreword

Stephen Morgan
Managing Director, Vogue Business
As we begin to emerge from the - What are the key drivers for luxury and advanced digital initiatives that we are
pandemic, we are delighted to announce purchases, and how do you align with unable to reflect in a fast-moving landscape.
our Vogue Business Index: Spring 2021 the fast-growing demand for As such, this Index should be taken as a
update focusing on the top-class transparency on labour rights? guide rather than a statement of fact before
strategies and opportunities for the drawing any conclusions from the ranking.
industry as stores reopen, digital’s - Will consumers return to purchase
importance continues, and consumer products in-store? And what share of At the core of the Index is our exclusive
behaviours shift post-pandemic. revenue will e-commerce have when consumer sentiment survey of Vogue and
stores reopen? GQ readers who spend in excess of $2,500
Building on data collected between October on luxury fashion annually across 13 key
2020 and March 2021, we are delighted to - Which social channels are a must- markets for luxury fashion. We have added
share our latest Index update, including the have, and which ones are undergoing brand trust and a rating of how much
addition of two brands, Dries van Noten and consolidation? brands align to consumer values to our core
Rick Owens, and new data points around survey as two metrics that will increasingly
core issues for brands: ESG and digital. To answer all these questions, the Index shape future consumer decisions. Overall,
assesses 60 brands across more than the Vogue Business Index provides the
The Spring 2021 Vogue Business Index 200 data points per brand. A number of industry with the most extensive dataset
reveals which brands have fared better than new data points have been added based to benchmark brands against competitors,
others as the world starts to recover from on the changing consumer expectations identify best practice strategies and
the pandemic. The Index will answer, among from brands, from additional assessment ultimately make better decisions.
many others, the following questions: of brands’ own WeChat handles to their
commitment to reducing overproduction
- What is important for Gen Z consumers and new business models that decouple
when making luxury purchases post- volume from growth. Please note, we believe J O I N T O DAY: S AV E 1 0 %
pandemic? How does it differ from other our methodology is the most comprehensive
age groups? reflection of what excellence in luxury
looks like. However, this is a guide, and it’s
- What brands are luxury consumers more possible in some areas — particularly around
likely to purchase from post-pandemic: omnichannel and digital initiatives — that
classic, timeless brands or those brands are limiting omnichannel offers to
with modern, contemporary styles? encourage their own channels or taking new

02 | FOREWORD
VOGUE BUSINESS INDEX LUXURY FASHION
Contributors
Gregorio Ossola
Insights and Advisory Lead
Gregorio Ossola has been insights
and advisory lead at Vogue
Business since February 2020.
Prior, he was the EU research lead
at Gartner L2, where he authored
reports analysing how digital is
impacting multiple industries,
providing best-in-class strategies
on how to succeed.
03 | CONTRIBUTORS
CONTENTS
Editorial Acknowlegements Vogue Business, the Index
and advisory services
Emily Forkan We would like to thank Binayak Choudhury
and the team at Phronesis partners for Vogue Business is a leading provider of insights,
Managing Editor
their invaluable contributions to this report. research and data for individuals and companies
operating in the global fashion, beauty and
George Arnett
luxury industries. The Index is the cornerstone of
Copy Editor We would also like to thank the board of
the insights and advisory offering and provides
advisors for their guidance:
a framework for industry leaders and investors
Hayley Leaver in fashion to see through the volatility. It helps
Sub Editor Tara Alhadeff solve problems that industry leaders are facing
Principal at Permira by analysing and comparing individual brand
performance, highlighting category and unique
Research Eric Fisch consumer insight. It is an objective scorecard for
Head of Retail and Apparel at HSBC businesses and the industry to understand brand
Corporate Banking performance and ultimately make better decisions.
Andrew Wakeford
Research Manager
The Vogue Business advisory capabilities draw
Alyssa Auberger
on our unique consumer and industry data and
Chief Sustainability Officer at Baker
insights and unparalleled knowledge of the fashion
Design McKenzie
and luxury industry through Condé Nast editors
in 30+ markets, including Vogue Business experts.
Laura Foley Celine Lippi The Vogue Business advisory services include
Digital Designer Co-Founder and Managing Partner of the qualitative and quantitative consumer research
Luxury Tech Fund with luxury consumers, competitive benchmarking
Louise Hunter through the Vogue Business Index, best practices
Senior Digital Designer Isabelle Harvie-Watt and category analysis.
Co-Founder at Cultus Group
Our industry expertise is based on our online
publication headquartered at Condé Nast in
London. We offer a truly global perspective on the
fashion industry, exploring how cultural trends and
global patterns will impact fashion businesses.
While sharing the Vogue name, Vogue Business
and the Index are wholly independent entities.
VOGUE BUSINESS INDEX LUXURY FASHION CONTENTS

Click to return to table of contents

Contents

Click on chapters to
navigate index sections P.7
Brands included

P.2
Foreword
P.8
Top 10

P.3
Contributors

P.9
P.6
Content excerpt
Methodology
Financials introduction
Consumer sentiment introduction
Digital introduction

P.5
About the Index
P.1 3
Chapter content
VOGUE BUSINESS INDEX LUXURY FASHION
About the Index
The Vogue Business Index is the most
comprehensive analysis of the world’s
top luxury fashion brands available
to date.
Combining unique consumer insights from
luxury consumers and Vogue and GQ
readers with data across more than 200
individual metrics, the Index is designed to
help investors and fashion professionals
benchmark brands and find out which have
the most momentum and why. The Spring
2021 Vogue Business Index marks the third
13
markets covered with a minimum of
500 qualified luxury consumers each,
including the US, China, Japan, Russia,
South Korea, India, UK, France, Italy,
Germany, Spain, South Africa and Brazil.
05 | ABOUT THE INDEX
update of the Index and now features two
additional brands: Dries van Noten and
Rick Owens.
The Index scores consumer perception of
each brand, as well as the cohort’s financial
performance, omnichannel capability,
environmental social governance (ESG)
reporting and digital proficiency. The
consumer perception category includes
unique data from highly engaged Vogue
and GQ readers in 13 key luxury markets
worldwide. The results reveal the views of
60
top luxury fashion brands
assessed based on
revenue benchmarked.
at least 500 luxury consumers on each
brand’s awareness, desirability, quality and
relevance, purchase intent and many others.
The entire Index is updated every six months,
allowing brand scores across each category
to be tracked over time. The dataset for
this Index was compiled between October
2020 and March 2021, giving an initial
assessment of brands’ performance as the
world starts to come out of the Covid-19
pandemic. The Vogue Business Index now
includes numerous additional data points
1,200+
data points collected
across five categories:
consumer sentiment, digital,
omnichannel, ESG and
financial results.
CONTENTS
to account for the shifting landscape in
the luxury fashion space. The data point
coverage will continue to be expanded,
in line with industry needs and priorities,
developments and trends.
The Index provides a data-driven
assessment of brand performance. Its
development was overseen by an advisory
panel of experts drawn from leading
financial and professional services firms
with expertise in consumer goods and
luxury sectors and industry experts.
27,000+
survey responses based
on Vogue and GQ readers
spending in excess of $2,500
on luxury products annually.
 VOGUE BUSINESS INDEX LUXURY FASHION CONTENTS

Methodology

Each category was weighted based on its
relative importance to the industry and
its ability to assess brands’ performance
as a present and future-looking indicator.
Weighting to each category and metric was
also determined based on its ability to assess
a brand’s performance objectively. The final
weightings were agreed following a review
process with the advisory board.
Throughout 2020, consumer needs have
altered dramatically, as have consumer
expectations for brands to align with their
own values. Our consumer survey now
includes consumers’ rating of both metrics, in
addition to brand trust.
As Chinese consumers use social media more
than any other market to inform their luxury
purchases, our assessment of brands presence
on WeChat has expanded to include readership
and engagement on brands’ pages.
A number of ESG data points were also added
to capture topical issues, including treatment
of wastewater, attempts by brands to reduce
overproduction and new business models that
decouple volume from growth.
Assessment of the in-store experience continues
to be reduced. As stores slowly start to re-open
post-pandemic, assessment of brands’ in-store
experience will also be further expanded.

Consumer Sentiment Digital Omnichannel ESG Financial Results
30% 22.5% 17.5% 15% 15%

Unaided and aided brand
awareness for luxury consumers
Perceived quality — product fit,
design and quality, pricing, sense
of elevated status, purchase
experience, meets needs better
than others
Brand association — unique brand
values, iconic brand, classic
and timeless brand, freshness of
collection, contemporary style,
lifestyle fit, sustainable and ethical
products, brand trust, aligns
with consumers’ values
Brand favourability
Purchase intent
06 | S
MEEC
T THIO
ODN ONL AOMGEY
Google search volume and organic
and paid traffic to site
Reach and engagement across
Facebook, Instagram, YouTube,
Twitter
Search volume and brand page
engagement on WeChat
Engagement and popularity of
runway shows through Vogue
Runway
Consumer perception of
omnichannel feature offering
Availability of fulfilment options
Customer service and VIP
programmes
Inventory and cross-device
integration
Geographic coverage of
e-commerce, third-party platforms
(WeChat, Tmall Chinese Luxury
Pavillion and JD) and store
network
In-store experience*
Note: Data points within each category are weighted differently. Bold elements are new additions to the Index.
*Reduced data points and weighting due to slow return to stores from consumers.
Effective communication of Brand-level revenue
sustainability policies
Quarterly brand-level
Environmental policies (carbon revenue change
emissions, supply chain including
Brand-level revenue
raw materials, processing,
productivity ratios (revenue
wastewater, reduce
per store and revenue per
overproduction and biodiversity)
employee count)
Labour equality (gender, gender pay
gap, age, diversity and inclusion)
Social impact (employee education,
worker pay and health)
Reporting on sustainability goals
and signing up to sustainability
commitments (Science Based
Target, ZDHC, etc.)
VOGUE BUSINESS INDEX LUXURY FASHION CONTENTS

Brands included

Acne Studios Comme des Garçons Kate Spade Paul Smith

Privately Held Privately Held Tapestry Paul Smith
Alexander McQueen Diane von Furstenberg Kenzo Prada
Kering DVF Corp LVMH Prada Group
Balenciaga Dior Loewe Ralph Lauren
Kering LVMH LVMH Ralph Lauren Corp.
Bally Dolce & Gabbana Longchamp Rochas
Shandong Ruyi Dolce & Gabbana Longchamp Interparfums
Bottega Veneta Ermenegildo Zegna Loro Piana Saint Laurent
Kering Privately Held LVMH Kering
Brunello Cucinelli Etro Louis Vuitton Salvatore Ferragamo
Fedone Privately Held LVMH Ferragamo Finanziaria
Burberry Fendi Marc Jacobs Tom Ford
Burberry Group LVMH LVMH Privately Held
Canada Goose Giorgio Armani Max Mara Tommy Hilfiger
Canada Goose Giorgio Armani Privately Held PVH
Carolina Herrera Givenchy Michael Kors Tory Burch
Puig LVMH Capri Holdings Tory Burch
Celine Gucci Miu Miu Valentino
LVMH Kering Prada group Mayhoola Investments
Chanel Hermès Moncler Versace
Chanel International Hermès International Moncler Capri Holdings
Chloé Hugo Boss Moschino
Richemont Hugo Boss Aeffe
Coach Jimmy Choo Mulberry
Tapestry Inc. Capri Holdings Challice

07 | RANKING
VOGUE BUSINESS INDEX LUXURY FASHION CONTENTS

Top 10

Index score Index score

1 5
Louis Vuitton Saint Laurent
LVMH Kering

2 7
Dior Burberry
LVMH Burberry

Content locked

2 This content is available to

8
Gucci Vogue Business Data and Insights Prada
Kering (VBDI) Members only. Prada

BEC OME A MEMBER

4 9
Chanel Fendi
Chanel International LVMH

5 9
Hermès Ralph Lauren
Hermès International Ralph Lauren

08 | TOP 10 Index score based out of 100.

Content
excerpt
VOGUE BUSINESS INDEX LUXURY FASHION
Financial results: Luxury’s
post-pandemic bounceback
The financial picture for luxury
midway through 2021 is far better
than anyone might have predicted
this time last year. Brands across the
sector are approaching revenue levels
close to pre-pandemic highs.
That’s at a time when international
travel, usually an important driver for
the luxury sector, remains close to zero.
One clear indicator of an improvement
in fortunes: 71 per cent of brands in the
Vogue Business Index have increased their
employee headcount over the past six
months, according to LinkedIn data.
The four brands atop the financial
rankings remain unchanged from
November 2020, though Chanel and Dior
have moved up to first and third place,
respectively, as a result of improvements
in the metrics evaluating profitability.
While brands have shuttered many stores,
investment is underway in other areas,
including e-commerce, which has truly
proven its worth during the pandemic.
Gucci returned to growth in the first
quarter of the year, pushing parent
company Kering to a 5 per cent overall
revenue increase.1 The latest sales
announced by Prada Group and Hermès
were double analyst expectations,
10 | F I N A N C I A L R E S U LTS
propelling Hermès shares over the €1,000
mark for the first time. LVMH, which
recently overtook Nestlé to become the
most valuable company in Europe, grew
8 per cent above pre-pandemic levels in
the first quarter. Louis Vuitton and Dior
contributed significantly to that growth,
with the fashion and leather goods
division of the conglomerate registering a
52 per cent rise in sales in Q1 compared
to 2020.2 Luxury fashion tech firm
Farfetch even managed to reach EBITDA
profitability for the first time in 12 years.3
The luxury sector’s focus on China is likely
to remain unchanged. The country was
one of the first to return to growth during
the coronavirus pandemic thanks to its
highly effective control measures (though
GDP is now growing slightly slower than
analysts had hoped).4 In a positive sign,
both Burberry and Kering note that
growth in China is coming from new
rather than existing customers. Data from
the Vogue Business Index shows that Gen
Z and millennials are the age groups that
expect to increase spending the most on
luxury over the next half-year.
As lockdowns eased in Europe last
year, consumers went on a spending
splurge.5 Brands are hopeful for a repeat
once major European economies are
vaccinated and some of the drivers of
luxury spending — such as events and
office working — return to normality.
Early signs from the UK, where luxury
consumers are particularly bullish about
the year ahead, are promising. Meanwhile,
the duty-free Chinese tropical island of
Hainan is becoming an important market
for luxury, even though many brands
say the retail offer there is still a work in
progress.6 Hainan’s government expects
duty-free sales to triple to $46.5 billion by
the end of 2025.
CONTENTS
71%
of luxury brands have increased
their headcount over the past
six months.
52%
rise in LVMH’s fashion and
leather goods division in Q1 2021
compared to Q1 2020, with the
growth driven by the APAC region
and the US.
16%
of luxury consumers expect
their spending on luxury fashion
to increase in the next six months,
compared to 9 per cent in
November 2020.
VOGUE BUSINESS INDEX LUXURY FASHION
Consumer sentiment: How consumers
will shop post-pandemic
How has the pandemic changed
consumer behaviour? As vaccines and
declining Covid cases worldwide allow
shopping restrictions to be relaxed, the
6,800 luxury consumers surveyed by
Vogue Business are ready to spend. They
may, however, care less about which
brand in particular benefits.
Chanel and Louis Vuitton have jumped above
Hermès to take first and second place in the
list of top 10 brands ranked by consumer
sentiment metrics alone.
One area where this shift in emphasis can
be seen is in how consumers view brands’
sustainability efforts and how that factors
into their purchases. A majority (62 per cent)
still say that sustainability is an important
factor influencing the luxury goods that they
buy. However, the close link that previously
existed between the degree to which a
consumer viewed a brand as sustainable
and the likelihood of making a purchase has
become looser since November 2020.
That does not mean brands’ efforts to boost
their sustainable credentials are invalid.
What we may be observing is a temporary
phenomenon: as normality resumes,
consumers at the point of purchase are — for
now — less fixated on specific brands' values,
including sustainability. That said, Prada
11 | CONSUMER SENTIMENT
CONTENTS
TV and movies are on the rise to influence luxury purchase decisions
Change in share of consumers who use the following channels to inform their
luxury purchases compared to November 2020
and Burberry made progress in convincing
consumers that they are sustainable brands,
with the former now the leader, according 10%
to consumers, for offering products that are
“sustainable and ethically sourced”.
7%
Fashion bloggers/influencers
This trend runs through the results from the
consumer sentiment section of this Index.
5
Brand mobile apps
Consumers are thinking less about specific
Monobrand stores
Search engines
brands, even though there is no indication
Online retailers
that the types of brands they want to buy
2% 2%
from are changing. All this suggests that a
Email
priority during the anticipated pandemic- 1% 1% 1%
related bout of revenge spending is simply to 0% 0%
get in front of consumers somehow.
Brand's own website
Shopping malls
Magazines/blogs
Fashion shows
Chats
Word of mouth
TV
Social media
-1%
How that can be done well may have
changed a little since last year. Glitz and -2% -2%
glamour take centre stage. TV commercials -3%
and movies are 7 per cent more likely to -4%
influence a luxury purchase than they were -5
in November 2020. Online video consumption
-6%
has quadrupled over the past year, with
CMOs often bringing production in-house.1
Product placement is rising in importance,
with AI-driven solutions to help brands -10
link with the right shows.2 The advertising
channel that has lost the most influence over
consumer purchases since November has November 2020 versus May 2021, n = 13,872 luxury consumers
been monobrand stores (down 7 per cent),
with the rise of e-commerce and changing D A T A : V O G U E B U S I N E S S I N D E X © V O G U E B U S I N E S S
shopping habits likely to explain the fall.
VOGUE BUSINESS INDEX LUXURY FASHION
Digital: Luxury’s digital
breakthrough
The year 2021 to date has seen the
consolidation and refinement of digital
by luxury fashion brands. Initially forced
on brands mostly by the pandemic, the
digital pivot has proven itself, but the
goalposts are moving fast.
Simply adding more digital is no longer the
answer, even in digital-obsessed markets
such as China. Luxury brands have been
posting less on Instagram during the
pandemic, our Index research shows. This
year has seen a more considered take on
how brands do social media and marketing.
This could be by posting less, smarter
or — in the case of Bottega Veneta, which
has deleted its Facebook and Instagram
accounts — not at all.
Brands are looking elsewhere to find success.
The rapid rise of TikTok — expected to have
in excess of one billion global monthly active
users by 2022 — is becoming a focus for
brands as it adds social commerce features.
Product-focused marketing via such an
informal, fun-driven platform is challenging,
but offers an opportunity to connect with
Gen Z and other younger consumers.1
Live-stream shopping marks an opportunity,
although still in a trial phase outside China
where technology and consumer interest
is limited. Burberry was an early adopter
12 | D I G I TA L
CONTENTS
Gucci is the leading luxury brand on TikTok
Top 10 brand accounts by number of followers on TikTok
Number of followers (000s)
of TikTok in May 2019, and now just over
half of the fashion houses in the Vogue Gucci 1,200
Business Index have a verified account
marking a clear pivot. Reports Chinese tech
Dior 897
giant JD.com may open a store on Douyin
suggest it’s a platform to watch.
Louis Vuitton 532
Digital pioneers are willing to test
new platforms. Valentino and Coach Hugo Boss 493
collaborated with online card game
We’re Not Really Strangers (WNRS) over
Moncler 482
the past year. The mission statement
of the game, which prompts players to
answer thought-provoking questions, is Ralph Lauren 322
“fostering meaningful connections”. These
collaborations with WNRS are evidence of Prada 277
what Vogue Business identifies as “a new
kind of KOL”, where alignment with brand
values is prized above all.2 Balmain 219
Burberry’s partnership with campaigning Coach 217
English soccer player Marcus Rashford,
widely lauded for his impact on UK
Dolce & Gabbana 181
government policy on food poverty, is
another example. Instagram engagement
on Burberry’s winter campaign featuring the
star was more than double the brand’s Q2 May 2021, n = 59 luxury brands
average, beating its most-liked post of all
time.3 One in 20 luxury consumers say sports D A T A S O U R C E : V O G U E B U S I N E S S I N D E X © V O G U E B U S I N E S S
stars are an influencing factor when making
a purchase, which, while below the one in five
that say the same about influencers more
generally, still shows a tangible impact.
VOGUE BUSINESS INDEX LUXURY FASHION
Chapter content
The content in this excerpt provides only
a glimpse of the 50-page Vogue Business
Index. Each chapter in the Index contains a
deep dive into the data providing insights on
the most important topics of the category in
addition to key takeaways that brands and
individuals working in the industry should be
aware of.
Consumer sentiment
Consumer sentiment data is based on
exclusive insights based on our survey of
over 7,000 Vogue and GQ readers in 13 key
luxury markets worldwide. Only consumers
that spend in excess of $2,500 on luxury
fashion annually qualify for this study.
The survey respondents were asked a
series of questions to assess each brand’s
awareness, perceived quality, brand
association, favourability and purchase
intent.
Digital
Digital assesses the proficiency of brands
across multiple online channels. Metrics
include unique data from Vogue Runway as
well as reach and engagement across most
major social media platforms globally and
effective Google search strategies.
J O I N T O DAY: S AV E 1 0 %
13 | CHAPTER CONTENT
CONTENTS
Omnichannel
Omnichannel assesses brands’ omnichannel
functionalities, geographic distribution of
e-commerce and store network and in-store
experience. Feature and option availability
across all channels is included alongside
consumer rating of the services on offer.
ESG
Brands’ environmental and social Introduction and insights
governance (ESG) includes an assessment These sections include an executive summary of the most
of a basic set of sustainability and important trends in the industry, inclusive of supporting
labour rights measures and the effective evidence from our exclusive data.
communication of these policies to
consumers.
Financial results
For a fair assessment of financial results,
brands are compared based on revenue,
quarterly revenue growth and revenue
productivity ratios.
Ranking
All 1,200 data points collected are
combined to generate a ranking of the
brands, providing the most comprehensive
assessment of brands’ performance.
Key takeaways
Each chapter also include key takeaways and
recommendations that brands and industry analysts should
be aware of when building their strategy.
VOGUE BUSINESS INDEX LUXURY FASHION CONTENTS

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015 | SECTION NAME