Page 6 - Travel Markets Insider October 2021 Final

INSIDER

Time for change: consumer demand drives conscientious and

responsible luxury retail

COVID has fundamentally changed
the way luxury shoppers behave according
to the latest consumer findings from Swiss
research agency, m1nd-set.
Luxury, brands retailers and travel and
tourism operators have responded to the
seismic shift in consumer mindset, to adapt
their product and service offering to the new
consumer attitude, which is increasingly
more socially and environmentally conscious
since the pandemic. Companies across groups to meet the expectations of the more the influence that sales staff are having on
all sectors and categories in luxury retail mindful post-pandemic luxury shopper. the product selection of luxury shoppers
are fundamentally changing the way they On travel retail shopper behavior since the pandemic.
source, manufacture and package product or among luxury shoppers specifically, the Head of Business Development at
reposition their products and services. research indicates luxury shoppers are m1nd-set, Anna Marchesini, commented
The research explores how these particularly more interested than they were on the research findings: “In all the years
changes are impacting the luxury retail before the pandemic in finding different we have been studying shopper behavior
sector today and how travel retail will products from their usual luxury purchases at m1nd-set, and looking back at previous
need to adapt to stay in line with consumer and more sustainable packaging. decades before that, there has not been any
expectations. The latest consumer trends According to m1nd-set, 25% of luxury occurrence which has had as much of a
and luxury shopping behavior in travel retail shoppers said they place importance on game-changing impact on the way shoppers
are also a focal point of the research, in purchasing something different compared behave. Luxury consumers have abandoned
particular how post-pandemic luxury goods to 18% on average in the years from 2017 their quest for extravagance.”
shoppers have changed their behavior when to 2020; 21% of non-luxury shoppers agree. “Given the shift towards more
traveling and shopping. And 20% of luxury shoppers said they were responsible consumption, and the shopping
The research also highlights the shift more conscious about the product packaging behavior of luxury shoppers in travel retail,
towards conscientious consumption among in 2021 compared to only 11% on average where we see consumers looking for more
Chinese consumers. According to m1nd- in the years from 2017 to 2020; 17% of non- information on the products and services
set, the Chinese consumer is particularly luxury shoppers agreed. prior to purchasing, we believe there is
sensitive to conscious consumption as Luxury shoppers are also significantly a huge opportunity for brands. The most
opposed to conspicuous consumption. One more likely than non-luxury shoppers to forward-thinking luxury brands in retail and
of the key trends highlighted in the report purchase at least one unique duty free in travel retail will seize this opportunity to
is the focus on experiential luxury since exclusive product and more likely than educate consumers about the unique history
the pandemic. There is a growing demand they did before the pandemic too. 80% of and sustainable attributes of their products
among some luxury consumer segments luxury shoppers said they would purchase or services. The world has changed and
for luxury travel experiences over luxury a duty free exclusive, up 28% on the 4-year sustainability is no longer a choice, but a
products. Luxury consumers are seeking average between 2017 and 2020 and 8% requirement,” Marchesini concluded.
less ostentation and more emotional and higher than among non-luxury shoppers. For more information on this luxury
spiritual experiences, which is leading to The interaction with, and impact of, sales shopper research or m1nd-set’s post-COVID
a marked growth in the luxury health and staff on the purchase behavior also reveals recovery research, please contact m1nd-set:
wellness travel sector. Respect towards significant changes, particularly concerning info@m1nd-set.com.
the environment and immersion in nature
are also important aspects of these travel
sustainable luxury experiences. Editor/Publisher: Lois R. Pasternak
In Memoriam: Paul A. Pasternak
Citing examples across some of the Executive Editor: Michael Pasternak
core categories including Beauty, Fashion Editorial Contributors: John Gallagher
& Accessories, Confectionery, Wines, Production Coordinator & Designer: Chris Hetzer
& Spirits, and even Watches & Jewelry, Design and Production: It’s About Time, Inc.
the research illustrates how major brands Webmaster: Michael Pasternak
Printing by The Printer’s Printer. Ft. Lauderdale, Florida
from all sectors are responding to the This publication is a special supplement of Travel Markets Insider, published
consumer call for greater responsibility by Pasternak Communications, Inc., 255 NE 3rd Ave No. 312, Delray Beach,
and accountability. In luxury fashion, the FL. 33444 USA. www.travelmarketsinsider.net
emergence of recycled materials by some E-mail: parsnip5@aol.com, editor@travelmarketsinsider.net
Tel (561) 908-2119
luxury fashion houses as well as an end to Travel Markets Insider is a weekly newsletter distributed 50 times a year
using animal fur, adopting vegan leather and via e-mail, on a subscription basis only.
recycled nylon, are just some examples of The annual subscription is US$200. Printed in the USA. All rights reserved.
© 2021 by Pasternak Communications, Inc.
recent developments among luxury fashion
October 2021 6