Summary

Aims

The concept of ‘luxury’ has evolved over the last decade, which holds both challenges and opportunities for Scottish textiles companies. The purpose of the research was to identify key global consumer trends that may impact on the growth of the Scottish Textiles industry over the next 18 months. Particular attention is given to three areas: the impact of the global recession on demand, consumer interest in provenance, and ‘responsible luxury’, including ethical consumerism and sustainability.

Methods

Primary market research was conducted in Japan (Tokyo), Russia (Moscow) and USA (New York) concerning consumer awareness and attitudes towards Scottish textiles brands. Eight local experts were interviewed in each country and focus groups were conducted with male and female consumers across a broad demographic.

Findings

Most major economies slowly began pulling out of recession in Q2/Q3 2009 with the UK the last of the G7 to emerge from recession in Q4 2009. Values and behaviours influenced by the economic downturn are however expected to persist amongst consumers. In these circumstances, consumer confidence and spending on luxury goods is likely to remain subdued until a stronger recovery takes hold. It is therefore suggested that emerging markets offer the most attractive prospect for luxury goods over the next three years. The biggest negative impact is being felt in the mid-market in Europe, the USA and Japan, where consumer incomes have been hit hard and attitudes to luxury have moderated. The financial crisis and its ongoing economic repercussions, after a decade of economic boom, has led consumers to re-evaluate their priorities and lifestyles. The result is a significant shift from conspicuous consumption to discerning consumption and positive attitudes towards products and brands which reflect individuality, authenticity and social and environmental responsibility. Provenance and responsibility are therefore the dominant trends of the moment in the luxury market and look set to shape consumer demand for the foreseeable future, and possibly even in the event of a significant improvement in the global economy. This fundamental change has implications for all players in the luxury textiles sector from global super brands to niche luxury businesses, in fashion and interiors markets, including Scottish luxury and premium textile businesses.

Recommendations

A number of recommendations for the Scottish Textile industry are made: Scottish branded textiles companies should develop new or enhanced brand narratives based around provenance, authenticity and responsible luxury; more Scottish textile companies should consider luxury (as opposed to fashion) in their strategic thinking; companies need to improve their business performance in the key areas in order to better serve the luxury market including: ordering, packaging and replenishment to luxury consumer standards; and they need to develop a strategy and take co-ordinated action at a national industry/sector level to promote Scottish luxury textiles through a collaborative brand marketing programme.