HS BCG Navigating What's Next 2023

MARCH 2023
Navigating What’s Next
A Pulse Check
Of the Luxury Consumer
& As presented at the ‘Navigating What’s Next’ event in January 2023, New York City 1
NAVIGATING WHAT’S NEXT – A PULSE CHECK OF THE LUXURY CONSUMER
Contents
Preface: The New Luxury
Chapter 01: General Outlook
Chapter 02: Optimism & Resilience
Chapter 03: Classics & Occasionwear
Chapter 04: Luxury As Lifestyle
Chapter 05: Evolution Of Community

Note: This presentation was rst shared at the ‘Navigating What’s Next Event’ in January 2023, New York City.
&
Preface
The New Luxury

The New Luxury
The new luxury is Highsnobiety’s & Boston

Consulting Group’s ongoing investigation into
where the future of luxury is heading.
Exploring how the attitudes and behaviors of

the luxury consumer are evolving over time
and reacting to culture at large.
&
Comparing general
luxury consumer with
the Cultural Pioneer
The New Luxury provides an ongoing comparison between a general luxury
consumer and the Cultural Pioneer consumer —someone who is younger and
more ahead of the curve.
SOCIAL MEDIA FOLLOWING NEW LUXURY BRANDS
10x 93%*/60%**
More than average % aware of 6 or more
USE RESALE /
MOBILE PLATFORMS SELF-IDENTIFY AS CREATIVE
2 2
~30%* 1 in 2*
~20%** 1 in 4**
% of fashion and luxury Cultural Pioneers vs
purchases in 2019 overall luxury consumers
& *CULTURAL PIONEERS **OVERALL LUXURY CONSUMERS

NAVIGATING WHAT’S NEXT – A PULSE CHECK OF THE LUXURY CONSUMER MARCH 2023
The New Luxury

Whitepapers
1 2 3
THE NEW LUXURY - 2018 CULTURE CULTURE CULTURE - 2019 LUXURY 3.0 - 2022
& 6
What is the
New Luxury mindset?

& 7
[Old] Luxury [New] Luxury

Materialism + Exclusivity + Knowledge + Access + Community
One Way Conversations
& 8
[#1] reason for the

New Luxury consumer
to follow a brand is
to “live in the universe
they have created.”
& SOURCE: CULTURE, CULTURE, CULTURE, BCG X HIGHSNOBIETY

“Stories over
product; knowledge
over possession;
community over
crowds; participation
and experiences
over observation.”
& SOURCE: CULTURE, CULTURE, CULTURE, BCG X HIGHSNOBIETY

Navigating
What’s Next
For this instalment of the New Luxury, we seek to give a data-driven pulse
check on how the luxury consumer is feeling right now.
In 2023, we are facing a uniquely challenging economic and political context.
We want to understand:
1 How is the luxury consumer feeling about the economy?

2 How are their priorities changing?
3 What categories are they investing in?
4
How does the idea of luxury evolve in economically tough times?
&
Methodology
This presentation is informed by two surveys – one of general luxury

consumers and one of Cultural Pioneers (Highsnobiety’s audience used as a
reference panel)
OVERALL LUXURY SURVEY
n =2 2,041 for US, n = 2,146 for UK, n = 2,504 for France, n = 2,571 for
Germany, unweighted
CULTURAL PIONEER SURVEY
n = 566; region: 50% eu / 38% n.a / 12% other; age:70% 18-34 / 30% 35+
&
Chapter 01
General Outlook
True Luxury
As of 2022, personal luxury (e.g., apparel, footwear, accessories, leather goods,
beauty, jewelry) spending had recovered to pre-COVID levels. While
experiential luxury (e.g., furniture, food & wine, ne dining, hotel, exclusive
vacations) has been growing.
GLOBAL TRUE LUXURY MARKET - €T

1.2 - 1.4
1.0 0.8 0.9 1.0 CAGR YoY Evolution CAGR

57% ’14-‘19 ’21-‘22 ’22-‘23 ’23-‘26
EXPERIENTIAL 64% 57% +6% +18% +16% +8-10%

55%
55%
43%
PERSONAL 36% 45% 45% 43% +4% +16% +7% +8-10%
2019 2021 2022F 2023F 2026F
Note: Personal includes apparel, footwear, accessories, leather goods, beauty, jewellery (branded and unbranded) and watches /
Experiential includes furniture, food and wine, ne dining & hotel and exclusive vacations
& Source: BCG Fashion & Luxury Market model as of Dec 2022; BCG Analysis 14
fi
The Next Gen Is Here

While Millennials and Gen Z made up ~40% of the True Luxury personal goods
market in 2019, they are expected to account for ~75% of the market by 2026. In
particular, they in uence the market through trendsetting and unprecedented
~550-560
digital engagement in the category.
8%
20-25%
TRUE LUXURY PERSONAL GOODS MARKET (€B)
~350
BABY BOOMERS
23%
AND SILVER
50-55%
~75%
GEN. X 37% OF TOTAL
MARKET
MILLENNIALS 35%
15-20%
GEN. Z 4%
2019 2026F
NEW GEN INFLUENTIAL ON OVERALL MARKET THROUGH

TRENDSETTING, DIGITAL ENGAGEMENT
Note: Numbers rounded. True Luxury personal goods market includes apparel, footwear, accessories, leather goods, beauty, jewellery
(branded and unbranded) and watches. Gen Z, 1993-2001; Millennial, 1978-1992; Gen X, 1963-1977; Baby Boomers, 1946-1962; Silvers,
& <1945. Source: BCG Fashion & Luxury Market model as of Dec 2022, UN World Population Prospects 15
fl
True Luxury: strong market

across key geographies
True Luxury Market, deep-dive on selected countries
CAGR '22-'26
~550-560
Rest of World +6%
TRUE LUXURY PERSONAL GOODS MARKET (€B)
Middle East +8%

25% Rest of World
~400 Middle East

Germany +7%
3%
3% Germany
~350
27%
5%
UK UK +6%
5%
Italy
6%
31%
3%
3%
6%
France Italy +7%
5%
Japan
3%
France
5%
4% +6%
6% 7%
6% 23% US
7%
7%
9% Japan +4%
24%
24%
24% China
US +7%
19%
11%
China +16%
2019 2022 2026
Note: Personal includes apparel, footwear, accessories, leather goods, beauty, jewellery (branded and unbranded) and watches /
Experiential includes furniture, food and wine, ne dining & hotel and exclusive vacations
& Source: BCG Fashion & Luxury Market model as of Dec 2022; BCG Analysis 16
Consumers feel nancially worse-o today;

are spending more, saving less …
“WOULD YOU SAY THAT YOU (AND YOUR FAMILY LIVING WITH … MOST ARE SPENDING MORE
55%
YOU) ARE BETTER OFF OR WORSE OFF FINANCIALLY THAN YOU … FEW ARE EARNING MORE
WERE 6 MONTHS AGO?” … MANY ARE SAVING LESS
% RESPONDENTS THAT FEEL WORSE OFF

… HAVE INCREASED HOUSEHOLD
55% SPEND COMPARED TO 6 MONTHS AGO
of households
feel nancially ~55% 46% 66% 52% 53%
only … HAVE INCREASED INCOME
worse o 18% COMPARED TO 6 MONTHS AGO
today… AVERAGE
… HAVE DECREASED SAVINGS

46% COMPARED TO 6 MONTHS AGO
MONTHLY CONSUMER SURVEYS WITHIN LIGHTHOUSE SHOW +8PP INCREASE IN %

DATA SOURCED FROM LIGHTHOUSE
OF HOUSEHOLDS FEELING WORSE OFF OVER PAST 6 MONTHS2
1. Net Change = Percentage of respondents spend a lot less or somewhat less minus percentage spend somewhat more or a lot more
2. 2. Data sourced from i360 Longitudinal Consumer Survey in Lighthouse Source: BCG Recessionary behavior Consumer Sentiment Survey,
& 3. Aug 2022 (n = 2,041 for US, n=2,146 for UK, n=2,571 for France, n= 2,504 for Germany, unweighted) 17
fi
ff
fi
ff
Overview
The State of Luxury ‘at a glance’.
WHO/WHERE WHAT HOW
• NEXTGEN HERE: MILLENNIAL AND GEN-Z TO • BIFURCATION OF CONSUMERS: HIGH-INCOME AND • RESET OF DISTRIBUTION ECOSYSTEM
REPRESENT 75% BY 2026, BUT RENEWED FOCUS PIONEERS STILL SPENDING – INCREASED BRAND-OWNED STORES
ON OLDER MILLENNIALS AND GEN X TOP TIER – MARKETPLACES OUTPACING OVERALL DIGITAL
CONSUMERS GROWTH
• SUSTAINABILITY & DEI ARE TABLE STAKES
– SOCIAL COMMERCE GROWING
• STRENGTH REMAINS IN US AND MIDDLE EAST;
EU RECOVERY SLOW; CHINA IN STOP-START • PRICE INCREASES AS INFLATION IS "PRICED • NEW BUSINESS MODELS (SECOND HAND
RECOVERY (IMPORTANT TO LUXURY OVERALL) IN" (AND SUPPLY CHAIN CHALLENGES CONTINUE) COMMERCE AND RENTAL)
• CLIENTELING 2.0 AND LOYALTY DRIVE HYPER-

• BRAND COMMUNITIES EVOLVING BALANCING
• RENEWED FOCUS ON LUXURY LIFESTYLE AND PERSONALISATION – DATA + HUMAN TOUCH
ONLINE AND OFFLINE INTERACTIONS.
SELF-CARE (LUXURY EXPERIENCES, TRAVEL,
BEAUTY) • NEXT-GEN AGILE SUPPLY CHAIN (GIVEN
CONTINUED DISRUPTION)
• MORE STRUCTURED SILHOUETTES AND ICONIC
PIECES OFTEN WIN FOR 'EVERYDAY OCCASIONS' • FUTURE OF WORK AND ORG. MODEL
• GENDER FLUIDITY ACROSS CATEGORIES

Focus of this
• WEB3 STILL IN DISCOVERY PHASE; SIGNIFICANT
presentation. OPPORTUNITIES (& RISKS)
& 18
Chapter 02
Optimism & Resilience

[High]Income
consumers (thus far)
exhibit a resilience
to the current climate,
feeling more
optimistic about the
recession and
expecting to spend
more.
&
Fashion &
Luxury Brands
High-income consumers are predictably more resilient in the face of the recession, planning to spend more in the future and maintain their preference for luxury
goods / experiences.
1 2
Net sentiment on consumer spending1 Di erence between high-income and general consumer
HIGH-INCOME CONSUMERS ALL INCOME-TYPES CONSUMERS DIFFERENCE
HIGH-END LUXURY FASHION BRANDS -2% -46% 45%
MID-PRICED & PREMIUM FASHION BRANDS 7% -30% 37%
ENTRY PRICE/FAST FASHION FASHION BRANDS 3% -23% 26%
VALUE/DISCOUNT FASHION BRANDS 3% -5% 7%
Note: High-income consumers include individuals having annual income >$150,000 and savings >$150,000
1. Net change represents the difference between the no. of individuals spending a lot more / somewhat more and somewhat less / a lot less; Question text: "In the next 12 months, how much do you expect your TOTAL spend on clothing, footwear,
and accessories to change compared to this past year for each of the following types of brands?";
& Source: BCG Recessionary Behavior Consumer Sentiment Survey, August 2022 (n = 9263, and n = 301 for high-income consumers; for apparel and footwear questions, n = 3115, and n = 105 for high-income consumers) 21
ff
The Cultural
Pioneer thinks
and act ‘rich’
Whilst the de ning trait of the cultural pioneer is not high income, we see this
consumer exhibit a similar optimism, resilience and preference for luxury as
the high-income consumer. This is because the cultural pioneer is less worried
about the macro economy and more focused on their personal aspirations.
COVID IMPACT TRAVEL PLANS SPENDING
72% 63% 63%

2
Feel less worried about Have booked travel Expect to spend the
the impact of COVID-19 plans within the last 6 same amount or more
now. months. over the next 6 months.
& SOURCE: HIGHSNOBIETY, CULTURAL PIONEER PULSE CHECK, DECEMBER 2022

fi
The Pioneer is
embracing
mindful spending
Pioneers are consciously evaluating their purchases beyond the traditional lens
of values. In addition to a preference for quality and other traits deeply
associated with luxury, the cultural pioneer shirks impulse for consideration,
seeing the brands they buy as an extension and expression of who they are.
MORE HIGH QUALITY ITEMS NOT IMPULSIVE ALIGNMENT
86% 71% 68%

2
of Pioneers agree of Pioneers disagree of Pioneers agree that

they’re looking to buy that they’re buying they choose brands that
fewer, but higher more impulsively. align with their
quality items. personal values and
stand for something
bigger than just their
products or services.

Chapter 03
Classics & Occasionwear

Social and travel

occasions are going
to dominate
consumer spend,
with a renewed
importance of
classic and timeless
pieces that won’t go
out fashion.
&
Occasions
High-income consumers are more likely to spend on fashion & luxury for
social occasions, both at home and elsewhere, as well as travel-related ones.
Other occasions such as hanging around at home (4%) or participating in work
events after work (2%) haven taken less priority for their planned spend.
US consumer expects to spend more on social and travel related occasions.
+35% TAKING A HOLIDAY IN THE SUN/ +35% GOING TO A SOCIAL

AT BEACH ACTIVITY AT HOME
+35% ATTENDING CELEBRATIONS/ +29% VISITING A CITY

WEDDINGS
NET SENTIMENT FOR FASHION & LUXURY SPEND BY OCCASION1

(% SPENDING MORE - % SPENDING LESS)
1. Net = Percentage of respondents answering a lot more or somewhat more minus percentage
somewhat less or a lot less, versus total US average of 1%
Note: Rounding differences may occur; Question text: “In the next 12 months, how much do you expect your
TOTAL spend on clothing, footwear, and accessories to change compared to this past year for each of the following types of occasions?”;
Source: BCG Economy Consumer Sentiment Survey (August 2022); N Tot = 3115; N US = 669
&
The Pioneer seeks

enduring style
Pioneers are less interested in following overt trends and making seasonal
purchases, instead shifting toward a preference for evergreen items that can be
collected, owned and styled for many years to come.
LESS CONCERNED INTERESTED IN CLASSICS TOP PURCHASE DRIVERS

FOR ITEMS OF CLOTHING:
72% 39%
2
86%
Quality
agree they’re less

concerned with having
less interested in
sneakers/ streetwear 79%
the latest products and more interested in Timelessness
classics/ tailoring
64%
Functionality
Consumer preferences shifting towards

preppy styles, statement pieces, iconic
silhouettes and gender fluidity
GROWING TREND TOWARDS MORE PREPPY OR RETURN TO CLASSIC ROOTS, EMBRACING

STRUCTURED STYLES – EVEN IN EMPHASIS ON EXTRAVAGANT AND CONVERGENCE TO GENDER FLUIDITY, IN BOTH SEASON-LESS STYLES AND ICONIC
STREETWEAR, INCLUDING TAILORED ATTENTION-GRABBING STYLES (E.G., LARGE APPAREL AND ADJACENT CATEGORIES SILHOUETTES; YOUNGER GENERATIONS
SILHOUETTES AND LOAFERS; LESS EMPHASIS OVERCOATS, MAIN STATEMENT PIECES) (E.G., BEAUTY) TURNING TO RESALE CHANNELS TO FIND
ON SNEAKERS AND T-SHIRTS THESE STYLES
& 28
Chapter 04
Luxury as Lifestyle
Mental and physical

well being have
increased in overall
importance for the
customer and self
care and escape
have become
luxuries.
&
US Travel
Post-COVID consumers in the West are returning to travel, with the high income consumer expecting to travel more often and for longer periods of time in the
next year. This is primarily due to the lifting of restrictions, with consumers wanting to make up for the lost time in 2020-2021.
+4% NET CHANGE IN NO. OF CONSUMERS EXPECTING TO TRAVEL 20+ NIGHTS MAKING UP LOST TIME THE #1 REASON FOR TRAVEL,
(% TRAVELING IN FUTURE 12 MO. - % TRAVELING IN PAST 12 MO.) FOLLOWED BY EASE AND SAFETY
12%
23%
1
20 + NIGHTS 38% 25% 40% MAKING UP FOR LOST TIME
31%
2
11-20 NIGHTS 33% TRAVEL IS EASIER THAN BEFORE
30%
63%
46%
28% 3
0-10 NIGHTS TRAVEL IS SAFER THAN BEFORE
27%
UPPER INCOME MIDDLE INCOME LOW INCOME
3 TOP REASONS CONSUMERS PLAN TO

NUMBER OF NIGHTS CONSUMERS EXPECT TO TRAVEL IN THE NEXT 12 MONTHS SPEND MORE ON TRAVEL IN NEXT 12 MONTHS
Source: BCG Recessionary behavior

Consumer Sentiment Survey, Aug 2022 (n = 2,041 for US, unweighted, respondents n = 416 for beauty category)
& 31
The Pioneer is
prioritizing
intangible luxuries
such as travel
Post-pandemic there is a renewed focus on travel, especially for experiences
which are one of a kind and luxury experiences.
BOOKED TRAVEL PLANS ONCE IN A LIFETIME POST PANDEMIC TRAVEL
63% 61% 57%

2
Have booked travel Say that post-post Say that post-pandemic

plans within the last 6 pandemic, they’re I found myself more
months looking for travel interested in travel,
experiences that are especially premium
more one of a kind or and luxury travel
once in a lifetime. experiences.
Luxury Brands are leveraging

travel and hospitality to create
new connections
1
PRODUCT 1
RETAIL 3
HOSPITALITY INSPIRATION
TRAVEL-ORIENTED CAPSULE COLLECTION LUXURY BOUTIQUES AND POP-UPS AT EXPANSION VIA LIFESTYLE AND
DESTINATION FASHION SHOWS
(E.G. SKI RESORT) HOLIDAY DESTINATIONS COLLABORATIONS
& 33
A focus on mental
wellbeing
Intangible luxury also takes into account physical and mental wellbeing, with
the Pioneer prioritising mental health and personal development.
WELLBEING PERSONAL
57% 54%
2
Prioritising looking after Prioritising personal/

their mental wellbeing self-development

US Beauty
Category expecting increased spend, largely driven by higher prices and
volume
BEAUTY TO SEE CONTINUED INCREASE IN SPEND… …WITH HAIR CARE AND BODY CARE EXPECTED TO SEE …DUE TO INCREASED PRODUCT PRICING AND VOLUME
THE HIGHEST INCREASE…
3 TOP REASONS CONSUMERS PLAN
TO SPEND MORE IN NEXT 6 MONTHS
+9% ALL BEAUTY FUTURE SPEND 7% SKINCARE 3% COSMETICS

(NEXT 6 MONTHS) 1
+61% CONTINUE PURCHASING BRANDS
I LIKE (EVEN IF PRICES INCREASE)
2
+3% ALL BEAUTY PAST SPEND +13% BUY MORE PRODUCTS OF THIS TYPE
13% HAIR CARE 12% BODY CARE
(LAST 6 MONTHS)
3
+8% SWITCH TO MORE EXPENSIVE BRANDS
• NET CHANGE1 IN NO. OF CONSUMERS EXPECTING • NET CHANGE1 IN NO. OF CONSUMERS EXPECTING
TO SPEND MORE FUTURE/PAST (% SPENDING TO SPEND MORE NEXT 6 MONTHS (% SPENDING
MORE - % SPENDING LESS) MORE - % SPENDING LESS)
1. Net Change = Percentage of respondents spend a lot more or somewhat more minus percentage spend somewhat less or a lot less
Source: BCG Recessionary behavior Consumer Sentiment Survey, Aug 2022 (n = 2,041 for US, unweighted, respondents n = 416
for beauty category)
& 35
Beauty is more
than self-care,
it’s expression
For the Pioneer beauty is much more than self-care, it’s a critical party of their
toolkit when it comes to self-expression and experimentation.
TOP THREE BEAUTY UNCONVENTIONAL

ASSOCIATIONS
80%
86%
Self Care
72%
2
64%
Like brands that have
unconventional approaches to
Con dence
beauty.
59%
Self-Expression
& SOURCE: HIGHSNOBIETY, BEAUTY SURVEY, JAN 2023

fi
Beauty fuels
community
Just as community is a critical pillar of the New Luxury paradigm; we see

community being a key route to beauty discovery as well.
ONLINE CONTENT CREATORS FRIENDS
51%
2
Say they are in uenced by online

49%
Say they are in uenced by their
content creators when it comes to friends when it comes to beauty
beauty purchases. purchases.
& SOURCE: HIGHSNOBIETY, BEAUTY SURVEY, JAN 2023

fl
fl
Chapter 05
Evolution of Community
And how brands

foster it — is always
a core pillar of the
new luxury paradigm.
What changes is
where those
communities lie and
how they organize
themselves.
&
Evolution of Community
in the New Luxury
ONLINE COMMUNITIES, MADE UP OF

COMMUNITY AROUND KNOWLEDGE. POWER OF AUDIENCES AND CULTURAL CREDIBILITY MANY DIFFERENT CONSUMERS SEGMENTS 2023 — LOCAL, NICHE AND INTIMATE
AND COHORTS.
& 40
Community is
becoming more
niche and intimate
Whether its online or in real life, post-pandemic we are seeing a resurgence
in smaller, more intimate spaces. These spaces o er greater intimacy and
meaning but also an opportunity to discover trends rst, and thus, greater
social currency.
SOMETHING IN COMMON TOO CROWDED ACTIVE ONLINE
69% 55% 29%

2
agree that when they agree that they feel are active on Discord/
see someone else large established social 23% are active on
wearing a brand they platforms like FB/IG BeReal
like, they feel as though have ‘too many people
they have something in on them’
common
ff
fi
Cultural Pioneers
invest in their
immediate
community
Cultural pioneers are using their resources to develop relationships with their
family, friends and loved ones. Whether through travel or purchasing, the
Pioneer sees their time and money as equally precious resources to be spent
on those they care most about.
SPEND ON EXPERIENCES HOLIDAY BOOKED GIVE BACK
73% 63% 47%

2
agree they’re spending have a booked a seeking out products

more on special holiday with family or and experiences that
experiences for friends within the last 6 help them give back to
themselves/loved ones months their community

AUTHORS AUTHORS
Edward Campbell, VP New Business & Thought Leadership Pierre Dupreelle, Managing Director & Partner
Alex Rakestraw, Associate Strategy Director Nicolas Llinas, Principal
Sarah Willersdorf, Managing Director & Partner
INSIGHTS
Anna Burzla , Director, Research & Insights

Tattiana Lamas, Sr. Manager, Research & Insights
Esmaeel Elsayed, Research Analyst
DESIGN The services and materials provided by Boston Consulting Group (BCG) are subject to BCG's Standard Terms (a copy of which is available upon request) or
such other agreement as may have been previously executed by BCG. BCG does not provide legal, accounting, or tax advice. The Client is responsible for
obtaining independent advice concerning these matters. This advice may a ect the guidance given by BCG. Further, BCG has made no undertaking to update
Chloé Techoueyres, Design Director these materials after the date hereof, notwithstanding that such information may become outdated or inaccurate. The materials contained in this presentation
are designed for the sole use by the board of directors or senior management of the Client and solely for the limited purposes described in the presentation.
Majada Ramadan, Senior Brand Creative The materials shall not be copied or given to any person or entity other than the Client (“Third Party”) without the prior written consent of BCG. These
materials serve only as the focus for discussion; they are incomplete without the accompanying oral commentary and may not be relied on as a stand-alone
Brian Boyages, Creative document. Further, Third Parties may not, and it is unreasonable for any Third Party to, rely on these materials for any purpose whatsoever. To the fullest
extent permitted by law (and except to the extent otherwise agreed in a signed writing by BCG), BCG shall have no liability whatsoever to any Third Party, and
Hyo Kim, Art Director any Third Party hereby waives any rights and claims it may have at any time against BCG with regard to the services, this presentation, or other materials,
including the accuracy or completeness thereof. Receipt and review of this document shall be deemed agreement with and consideration for the foregoing.
BCG does not provide fairness opinions or valuations of market transactions, and these materials should not be relied on or construed as such. Further, the
nancial evaluations, projected market and nancial information, and conclusions contained in these materials are based upon standard valuation
methodologies, are not de nitive forecasts, and are not guaranteed by BCG. BCG has used public and/or con dential data and assumptions provided to BCG
by the Client. BCG has not independently veri ed the data and assumptions used in these analyses. Changes in the underlying data or operating assumptions
will clearly impact the analyses and conclusions.
VISUAL EDITOR
Manus Browne, Senior Visual Editor IMAGE CREDITS

Callum Leyden, Visual Editor, Licensing POLO LINDSTRÖM MULLER: PAGES 2; 3; 4; 10; 26; 31; 33; 34; 35; 41 JULIEN TELL: PAGES: 5; 9; 11; 12; 20; 21; 23; 24; 25; 26; 28;
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EVA AL DESNUDO: PAGE 6;41 / STEPHANE CARDINALE / CORBIS/CORBIS VIA GETTY IMAGES: PAGE 13
& 43
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fi
fi
ff
fi
Max Berger Pierre Dupreelle

Chief Commercial O cer Managing Director & Partner
max.berger@highsnobiety.com dupreelle.pierre@bcg.com
Edward Campbell Nicolas Llinas

VP, New Business & Thought Leadership Principal
edward.campbell@highsnobiety.com llinas.nicolas@bcg.com
Angus MacEwan Sarah Willersdorf

SVP, Head of Marketing and US Business Managing Director & Partner
angus@highsnobiety.com willersdorf.sarah@bcg.com
& 44
ffi

HS BCG Navigating What's Next 2023

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MARCH 2023

Navigating What’s Next

Preface: The New Luxury

Chapter 01: General Outlook

Chapter 02: Optimism & Resilience

Chapter 03: Classics & Occasionwear

Chapter 04: Luxury As Lifestyle

Chapter 05: Evolution Of Community

The New Luxury

The New Luxury

The new luxury is Highsnobiety’s & Boston

Exploring how the attitudes and behaviors of

SOCIAL MEDIA FOLLOWING NEW LUXURY BRANDS

& *CULTURAL PIONEERS **OVERALL LUXURY CONSUMERS

The New Luxury

New Luxury mindset?

[Old] Luxury [New] Luxury

[#1] reason for the

& SOURCE: CULTURE, CULTURE, CULTURE, BCG X HIGHSNOBIETY

& SOURCE: CULTURE, CULTURE, CULTURE, BCG X HIGHSNOBIETY

In 2023, we are facing a uniquely challenging economic and political context.

1 How is the luxury consumer feeling about the economy?

This presentation is informed by two surveys – one of general luxury

GLOBAL TRUE LUXURY MARKET - €T

1.0 0.8 0.9 1.0 CAGR YoY Evolution CAGR

EXPERIENTIAL 64% 57% +6% +18% +16% +8-10%

PERSONAL 36% 45% 45% 43% +4% +16% +7% +8-10%

2019 2021 2022F 2023F 2026F

The Next Gen Is Here

NEW GEN INFLUENTIAL ON OVERALL MARKET THROUGH

True Luxury: strong market

Middle East +8%

~400 Middle East

Consumers feel nancially worse-o today;

% RESPONDENTS THAT FEEL WORSE OFF

… HAVE DECREASED SAVINGS

MONTHLY CONSUMER SURVEYS WITHIN LIGHTHOUSE SHOW +8PP INCREASE IN %

WHO/WHERE WHAT HOW

• CLIENTELING 2.0 AND LOYALTY DRIVE HYPER-

• GENDER FLUIDITY ACROSS CATEGORIES

Optimism & Resilience

HIGH-INCOME CONSUMERS ALL INCOME-TYPES CONSUMERS DIFFERENCE

HIGH-END LUXURY FASHION BRANDS -2% -46% 45%

MID-PRICED & PREMIUM FASHION BRANDS 7% -30% 37%

ENTRY PRICE/FAST FASHION FASHION BRANDS 3% -23% 26%

VALUE/DISCOUNT FASHION BRANDS 3% -5% 7%

COVID IMPACT TRAVEL PLANS SPENDING

72% 63% 63%

& SOURCE: HIGHSNOBIETY, CULTURAL PIONEER PULSE CHECK, DECEMBER 2022

MORE HIGH QUALITY ITEMS NOT IMPULSIVE ALIGNMENT

86% 71% 68%

of Pioneers agree of Pioneers disagree of Pioneers agree that

& SOURCE: HIGHSNOBIETY, CULTURAL PIONEER PULSE CHECK, DECEMBER 2022

Classics & Occasionwear

Social and travel

US consumer expects to spend more on social and travel related occasions.

+35% TAKING A HOLIDAY IN THE SUN/ +35% GOING TO A SOCIAL

+35% ATTENDING CELEBRATIONS/ +29% VISITING A CITY

NET SENTIMENT FOR FASHION & LUXURY SPEND BY OCCASION1

The Pioneer seeks

LESS CONCERNED INTERESTED IN CLASSICS TOP PURCHASE DRIVERS

agree they’re less

Consumer preferences shifting towards