UK luxury sector forecast to almost double in size

Digital innovation remains a top priority for UK luxury brands in the coming year. The most popular marketing initiative carried out by British luxury brands in 2012 was investment in e-commerce and social media. Mobile commerce is set to become increasingly important with nearly double the respondents involved in the study investing in m-commerce this year, compared to 2012.

Looking ahead, the two most important challenges facing British luxury businesses in 2013 are maintaining product quality, and reaching the next generation of consumers.  Almost all of the surveyed brands (98%) believe that reaching the next generation will be a challenge to some degree.  

Julia Carrick, Chief Executive of Walpole commented:

“We are delighted to be collaborating with Ledbury Research on the UK luxury benchmark study, for the fourth year running.  The findings from this year’s study provide an insightful look at the changing landscape of the UK luxury industry and the key priorities and challenges facing senior luxury executives in the coming year. 

"Despite the backdrop of the Eurozone crisis and a difficult economic environment, the UK luxury industry remains extremely robust and is forecast to grow significantly in size”.

Michael Ward, Director of Walpole and MD of Harrods, commented:

“London is home to the majority of luxury goods sales and continues to attract vast numbers of international shoppers. It is important, however, not to overlook the regions; as the UK luxury benchmark study has identified, the majority of UK luxury brands have a presence outside of the capital and tier one cities such as Manchester and Edinburgh are key luxury hubs.”

James Lawson, Director at Ledbury Research, added

“Behind some buoyant numbers, this year’s results reveal the key theme of innovation for the British luxury market. Innovation from the brands - including their use of technology and social media – and a next generation of new and inquisitive luxury consumers who are voracious users of these new platforms.”

Walpole British Luxury