Image courtesy of L Brand’s Henri Bendel
The behavior of millennial men is driving the market, leading 7 out of 10 top performing fashion and luxury companies to hail from the United States and has put increased focus on apparel and footwear, according to a report from the Boston Consulting Group.
“If not a surprising finding, certainly noteworthy, is seven out of the top ten public value creators are US-based, reflecting the confidence of investors in the near-term and mid-term future of this geographic market, driven by male Millennials behaviors, driven by the Founders generation notably in apparel and Millennials generation notably in footwear, and driven by accessible-luxury supply,” said Christine Barton, senior partner at Boston Consulting Group. “In recent years, the luxury and fashion industry established a solid record of strong value creation for shareholders, in part fueled by expansion and down-aging of wealthy classes, the emergence of middle, consumptive classes in developing markets, and the creation of accessible-luxury supply in markets like the U.S. From 2009 through 2013, for example, fashion and luxury ranked first in total shareholder return among five consumer sectors and first among all 26 cross-industry sectors studied. “From 2011 through 2015, however, the sector’s performance has declined, a trend that has continued in 2016 for a number of demand reasons,” she said. “Fashion and luxury ranked la...