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FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury industry, has released the 2023 edition of its Conscious Luxury Trend Report. The third annual report examines how consumers are engaging in more responsible shopping practices and unveils significant opportunities and innovations in the luxury industry's sustainability landscape.
The report highlights key players, emerging innovations, and data-driven insights that contribute to positive changes and advancements in the fashion sector, while also shedding light on beauty customer preferences and considerations. Therefore, the document serves as a valuable resource among the various tools and support that FARFETCH provides to its partners to assist them on their sustainability journey.
The main conclusions of the Conscious Luxury Trend Report 2023 include:
Global demand for Conscious products continued to increase, offering brands lucrative opportunities in high-potential and high-growth regions.
A 10% higher conversion rate for Conscious products on the FARFETCH marketplace compared to non-Conscious products.
In 2022, 27% of FARFETCH customers purchased at least one Conscious product, a significant increase from 16% in 2021.
Conscious sales grew 16 percentage points faster than overall sales on the marketplace.
The United States leads in terms of the number of Conscious products sold and second-hand product sales.
Kuwait and China have the highest combined proportion of Conscious sales, accounting for 17% of GMV.
The United Arab Emirates had the highest growth in used product sales, with a 246% annual increase in GMV.
Consumers are proactively seeking out Conscious products, and there is significant alignment between beauty and fashion customers in their pursuit of Conscious attributes.
A +78% annual increase in search terms related to the Conscious category.
'Linen,' 'Vegan,' and 'Organic' were the top Conscious-related search terms for fashion on the marketplace in 2022.
Similarly, for beauty products, the top Conscious search terms in 2022 were 'Vegan,' 'Clean,' and 'Organic.'
Pre-owned products are attracting and retaining high-value consumers. Authenticity is the primary concern for consumers when purchasing a pre-owned item.
34% of respondents reported buying a used or vintage item in 2022, a significant increase from 20% in 2021.
Private Clients accounted for 53% of the GMV mix for pre-owned in 2022, up from 31% in 2021.
The average selling price (ASP) of used items purchased by Private Clients in 2022 was $4,626 (+41% year-on-year). This ASP is nearly double the category average.
78% of customers consider certified authenticity "extremely important" or "very important" when buying used products.
Circular initiatives that extend the lifespan of fashion items continue to grow in popularity, with nearly half of FARFETCH customers participating in reselling in 2022. These initiatives have also demonstrated their value as effective acquisition tools.
46% of FARFETCH customers sold a fashion item in 2022, compared to 22% who started selling in 2021.
The percentage of FARFETCH customers who donated a used fashion item increased from 20% in 2021 to 39% in 2022.
The number of FARFETCH customers who repaired a fashion item increased from 13% in 2021 to 34% in 2022.
The emergence of innovative technologies and solutions offers brands diverse opportunities to address sustainability challenges.
FARFETCH market data highlights the effectiveness of Virtual Try-On (VTO) technology in improving customer satisfaction and reducing returns. It reveals a 13% reduction in footwear return rates and a 14% reduction in handbag returns when customers use VTO compared to when VTO is not used.
