New European and US research from TikTok and AYTM shows how the luxury market is evolving to adapt to younger generations with 70% of the luxury buyers on TikTok having spent over £1,000 on a single fashion item.
Reuters
The social media company spoke to over 3,000 adults across the UK, US, France and Italy and said that “younger consumers are helping luxury brands unlock growth”, and those brands “are using social platforms to reach new audiences and convince shoppers that their products are worth buying”.
TikTok said it “has become one of the fastest-growing channels for discovery, decision-making and direct purchase in luxury fashion”. That reflects broader industry patterns, with around two-thirds of those polled citing social media — rather than traditional offline media — as their entry point into the category.
The study summed it up saying that for first-time luxury buyers, “the journey no longer begins with a storefront, but with a scroll”.
TikTok users are more likely to discover luxury brands via social user-generated content (38%) and creator videos (32%) as creators help decode everything from craftsmanship and pricing, to fit and styling, “helping audiences navigate luxury with clarity and confidence”. In fact, 26% of TikTok luxury shoppers said they wait for creator reviews before buying, and a third (32%) discover brands through creators.
And it’s interesting that “the conversation continues in the comment section, with luxury buyers increasingly going there for validation, asking for authenticity checks, sizing advice and peer recommendations”. A 113% annual increase in comments on luxury fashion content “highlights how community discussion is becoming a crucial part of the decision-making process”.
The company said that while sales of global personal-luxury goods declined by 2% in 2023, Europe grew by 3% to an estimated €110 billion, “driven in part by younger consumers who are embracing luxury through digital-first channels”.
Some 15% of users “have purchased a luxury fashion item directly after seeing it on the platform, while many more save content, revisit it, and return ready to buy”.
We’re also told that one in four luxury shoppers now purchase second-hand items inspired by TikTok trends, while one in three act on personalised recommendations surfaced via creator content. “As Gen Z and Millennials — on track to control 60% of luxury spend by 2026 — prioritise transparency, identity and authenticity, TikTok has emerged as a key channel for luxury brands to tap into these priorities with audiences,” the company said.
And it’s interesting that 47% of its users now define luxury as a “form of self-expression, rather than status, associating it with empowerment and individuality”. Meanwhile 59% of luxury shoppers on the platform say their main reason for buying is to reward themselves. Hashtags like #selfgifting have seen a 110% surge in video views, “highlighting the emotional motivations driving this new mindset”.
Kristina Karassoulis, UK head of luxury at TikTok, said: “This research shows that what drives luxury purchases today isn’t polish — it’s proof. People want to hear from peers, not just brands. TikTok has become a place where credibility is built in the comments section and the path to purchase now runs through creators, conversations and community insight. It’s the spark that luxury brands can’t afford to ignore.”
Marking 25 years in the business, Portuguese footwear brand Leira has unveiled a new website—developed with Felgueiras Magazine Soluções Web—to showcase its craftsmanship, values, and growing global presence.
Leira shoe factory in Felgueiras marks 25 years with digital platform debut – Felgueiras Magazine
Based in Felgueiras, a city renowned as one of Portugal’s leading footwear manufacturing hubs, Leira has established a reputation over the past two decades for its commitment to craftsmanship, tradition, and sustainable practices. The new platform—available at Leira.pt—aims to reflect the company’s core values while showcasing its evolution and ambition to expand further in international markets.
“With an elegant design, intuitive navigation, and carefully crafted content, the website aims to strengthen the connection between the brand and its customers, partners, and wider community,” Felgueiras Magazine said in a statement.
Leira’s CEO, Isabel Teixeira, described the digital launch as a significant milestone.
“We wanted a website that truly reflects who we are—simple, genuine, and crafted with care,” said CEO Isabel Teixeira. “It needed to mirror our approach: thoughtful, responsible, and rooted in a deep respect for craftsmanship.”
She added, “After 25 years, this platform lets us present who we are today while remaining open to new ideas and challenges. It’s our way of welcoming others and sharing what drives us.”
The website outlines Leira’s mission: to deliver strong footwear collections that meet current market demands while upholding the company’s values of precision, confidentiality, and fair pricing. At its foundation is a long-term vision rooted in trust-based partnerships and collaborative growth.
With a skilled team, modern production facilities, and a commitment to detail, Leira has grown into a trusted partner for global brands. Today, more than 95% of its production is exported, underscoring its ability to consistently deliver international-quality footwear.
This article is an automatic translation. Click here to read the original article.
Qatar-based investment fund Mayhoola and Gucci-owner Kering are reportedly considering selling their jointly owned fashion house Valentino, according to an Italian daily.
Kering and Mayhoola may sell Valentino, reports Italian daily – Reuters
The decision is part of a broader portfolio review by Kering, as the French luxury group faces rising debt, softening global demand for high-end fashion, and pressure on the stock market, Corriere della Sera reported Friday.
Kering acquired a 30% stake in Valentino in 2023 for $1.7 billion, with a commitment to purchase the remaining 70% by 2028. The move was intended to establish a second flagship brand alongside Gucci, rooted in couture heritage.
Kering’s newly appointed chief executive, Luca de Meo—former CEO of carmaker Renault—is expected to take charge of the situation after officially starting on September 15. The newspaper noted that Kering declined to comment, and Mayhoola did not respond to a request for comment.
Valentino, headquartered in Rome, announced last month that its chief executive officer, Jacopo Venturini, is on medical leave.
Last year, the brand appointed Alessandro Michele as its new creative director following the departure of long-serving designer Pierpaolo Piccioli. In the same year, Valentino reported a 2% decline in revenue at constant exchange rates, reaching 1.31 billion euros ($1.52 billion).
As Britain’s most prominent luxury label, Burberry’s results re always closely watched, but even more so since it started struggling and issuing profit warnings. And on Friday its Q1 figures were in the spotlight.
DR
So how did it do in the 13 weeks to late June? It’s not back in top form, although there were very clear signs of progress. The company said that its retail revenue fell 6% on a reported basis to £433 million and it was down 2% at constant exchange rates (CER), stripping out the negative impact of currency effects that have been denting a lot of fashion businesses this year. It was trading from a little less space this time too (-1%), so that also weighed on the figures.
Its comparable store sales were down 1% and one of the aforementioned signs of progress could be seen from the fact that a year ago that figure was negative to the tune of 21%. OK, it’s not yet been able to claw back any of that 21% deficit of this time last year but in the circumstances of an ongoing luxury slump and the company’s own turnaround drive, that 1% fall isn’t bad. And analysts had been expecting a fall of around 3% so that was more good news.
Most importantly though, comparable store sales in two of its key regions tipped into positive territory. In EMEIA, they were up 1% and in the all-important Americas market they rose 4%. Admittedly Asia in general remains an issue for the brand and Greater China comp sales were down 5% while Asia-Pacific fell 4%.
EMEIA had been boosted by local spend offsetting declines from tourists; the Americas was supported by new customer growth; the Greater China figure included a drop of 4% from Mainland China; and the Asia Pacific drop came as it saw a challenging performance in Japan, partially offset by growth in South Korea.
What it did right
In Q1, the company had taken various actions to boost its performance, “resulting in comparable retail sales improvement across all regions relative to the previous quarter. This was supported by stronger brand desirability, outperformance in outerwear and scarves and improved conversion”.
The company has issued a a series of distinctive monthly campaigns such as High Summer, Highgrove, and Festival, “each celebrating British summertime traditions while appealing to different customer archetypes”.
It rebalanced the autumn 25 collection (its first under the Burberry Forward era), “attracting a broad range of luxury customers, focused on fewer, bigger ideas, hero-ing recognisable brand codes”.
Visual merchandising was also enhanced in stores with fixtures to improve product densities. And its scarf bar pilot is outperforming the fleet with 200 targeted by year end.
It saw online momentum continuing for the third consecutive quarter, driven by a “stronger product mix, universal styling and storytelling”.
And its organisational changes are “fostering greater collaboration and agility”. Its cost efficiency programme is on track to deliver £80 million in annualised savings by FY26.
CEO Joshua Schulman understandably chose to focus on the positives and said: “Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence. The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead.”
Of course, it’s the future that counts and he added that the autumn 2025 collection “is being well received by a broad range of luxury customers as it arrives in stores. Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see”.
As for the FY26 outlook, Schulman emphasised that as well as it still being early in its turnaround drive, the macroeconomic environment “remains uncertain”. Without giving any concrete figures, he said: “Our focus this year is to build on the early progress we have made in reigniting brand desire, as a key requisite to growing the top-line. In the first half we are continuing to prioritise investment and expect to see the impact of our initiatives build as the year progresses. We will deliver margin improvement with a continued focus on simplification, productivity and cash flow. We remain confident that we are positioning the business for a return to sustainable, profitable growth.”
Analyst view
The general view of all this from analysts is that the business is going in the right direction but they’re aware that there’s still much to do and the market remains tough.
Nick Sherrard, MD of innovation expert network Label Sessions, said: “The leadership team at Burberry has done so much right. In fact, in the year since Josh Schulman took over as CEO it has repositioned the brand in a way that shows real vision, and is hugely admired inside and outside the industry. There are tentative signs of why in today’s update.
“The work Burberry has done over leaves it well placed to eat into its competitors’ market share. Recent brand activations in Ibiza, Glastonbury, and Highgrove show a brand… clear on its strategy. Execute on that and this could be a classic case study of transformation.
“All of that said, 2025 is not a great time to run a luxury brand. The ad campaign reads ‘it’s always Burberry weather’ but in financial terms, at least, there are limits to how fast you can drive revenue recovery in economic conditions like these – particularly in China and the wider Asia Pacific region.”
Politics8 years ago