Global Powers of Luxury Goods 2021 report was released by Deloitte:
Breakthrough luxury
Over the past year and a half, consumers and companies have been adapting to a new way of living and their outlook on luxury goods may be undergoing change. There is growing awareness of environmental concerns and
the need for sustainability in how goods are produced and used. Luxury goods companies are reacting positively; and even though the industry is returning to live events and instore sales, both sustainability and digitalization now feature more prominently in their strategies for the future.
Digitalization and sustainability goals in the luxury goods industry are driving fashion-tech investments
The world of fashion and luxury goods is undergoing extensive change. What were previously choices of product design of just a few environmentally-conscious and courageous innovators, are now moving closer to the mainstream, involving almost all the companies in the industry.
Increasingly, luxury goods companies are changing their approach and mindset, incorporating sustainability and
digitalization into their long-term strategies, to align with consumers’ demands and new regulatory requirements.
They are focusing more on sustainability in the design and production of luxury goods, and at the same time are
accelerating the adoption of digital solutions to engage with consumers and deliver luxury shopping experiences using technology.
The jump into the digital world has been faster than expected, and the aim of companies now is to refine the solutions already implemented and develop new digital solutions. This increased pace means a complete rethinking of production processes and, most importantly, finding new ways of creating
products.
Luxury goods companies are making strategic partnerships with both experienced players in the digital field and with innovative startups to create new products and find alternative ways of improving services, while reducing their environmental impact.
Innovation is the lever of change in the fashion and luxury
industry. Indeed, the largest companies in the industry are sponsoring innovation competitions between startups and incubators, with the aim of promoting innovative practices and fueling the proliferation of new approaches to fashion. The ultimate goal is to become digital and sustainable by design.
