Vogue Business has published the first update of its annual Vogue Business Index, a comprehensive analysis of the world’s top global luxury fashion brands available today. The Index examines the impact of the Covid-19 pandemic on the luxury fashion industry globally, with data-driven analysis and insights from more than 7,000 luxury consumers, analysis of omnichannel and digital capabilities and financials. 

Key insights include: 

• China and the US held up the luxury fashion industry, showing positive signs of recovery in Q3 whilst globally, sales dipped with an average decrease in revenue at 53% in Q2 across the majority of luxury fashion houses.

• Brands must pivot to China as a determining factor for future success, where 98% of consumers surveyed have spent on luxury in the last three months.

• The US market is predominantly a local market with little impact from foreign tourist spending, making it more resilient to pandemic-related travel restrictions. High-income luxury consumers in the US are likely to maintain pre-pandemic spending patterns.

• A considered omnichannel strategy is a crucial factor for a brand’s success with enhanced e-commerce and cross-channel return capabilities being the most valued by luxury consumers globally.

• Across all demographics, consumers increasingly consider sustainability mandatory: 24% of consumers consider a brand’s environmental policy a key factor to a luxury purchase and 43% of consumers feel they do not know enough about sustainable fashion.

• 59% of luxury consumers consider diversity and inclusion as an important factor when making a luxury purchase.

You can download the full Index here.