- Report reveals rising global demand for Conscious fashion and beauty products and growth opportunities in the luxury industry
- 10% higher conversion rate for Conscious products on the FARFETCH Marketplace, compared to non-Conscious products
- Searches for Conscious product terms on FARFETCH grew 78% year-on-year (YoY)
- Circular fashion initiatives gain traction as consumers embrace resale, donation and repair services
LONDON, U.K. June 28, 2023– FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury industry, today published its 2023 Conscious Luxury Trends Report. The third annual report looks at how consumers are shopping more responsibly and reveals the significant opportunities and innovations in the luxury industry’s sustainability landscape.
The report highlights leading players, emerging innovations, and data-driven insights that help to drive positive change and progress in the industry. The report also sheds light on the preferences and considerations of beauty customers who are searching for Conscious beauty products. It shows the factors that customers prioritise when shopping for Conscious beauty and provides insights into the key Conscious attributes for beauty products stocked on the FARFETCH Marketplace. This report serves as a valuable resource among the various tools and support that FARFETCH offers its partners to assist them on their sustainability journey.
Key findings from FARFETCH’s 2023 Conscious Luxury Trends Report include:
The global demand for Conscious products has continued to rise, providing brands with lucrative opportunities in high growth and high potential regions.
- 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 FARFETCH Marketplace.
- The United States leads in terms of the number of Conscious products sold and pre-owned product sales.
- Kuwait and China have the highest joint proportion of Conscious sales, accounting for 17% of GMV
- The United Arab Emirates experienced the highest growth in sales of pre-owned products, with a YoY increase of 246% in GMV.
Consumers are proactively searching for Conscious products and there is a significant alignment between beauty and fashion customers in their search for Conscious attributes.
- +78% YoY increase for Conscious-related search terms
- ‘Linen’, ‘Vegan’, and ‘Organic’ were the top Conscious-related search terms for fashion on the FARFETCH Marketplace in 2022
- Similarly, for beauty products, the top Conscious search terms in 2022 were ‘Vegan’, ‘Clean’, and ‘Organic’
Pre-owned is attracting and retaining high-value consumers. Authenticity is the top consumer concern when buying pre-owned.
- 34% of survey respondents reported buying a pre-owned 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 pre-owned items purchased by Private Clients in 2022 was $4,626 (+41% YoY). This ASP is nearly double the category average.
- 78% of customers consider certified authenticity ‘extremely important’ or ‘very important’ when buying pre-owned.
Circular initiatives which extend the life of fashion items are continuing to grow in popularity, with nearly half of FARFETCH customers participating in resale 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 rose from 13% in 2021 to 34% in 2022.
- In 2022, 28% of Second Life customers and 66% of Refresh customers were new to FARFETCH, highlighting the effectiveness of these initiatives as customer acquisition tools.
The emergence of innovative technologies and solutions provides brands with diverse opportunities to address sustainability challenges.
- Data from the FARFETCH marketplace highlights the effectiveness of Virtual Try-On (VTO) technology in improving customer satisfaction and reducing returns. It reveals a 13% reduction in return rates for shoes and 14% reduction for bags when customers use VTO, compared to when VTO is not used.
The full report can be accessed HERE.
Thomas Berry, Senior Director of Sustainable Business, FARFETCH, said:
“At FARFETCH, we are committed to driving positive change in the luxury industry. This year’s Conscious Luxury Trends Report showcases the remarkable progress being made in this space across the industry, and the significant opportunities for brands to align with consumer values and help to deliver positive social and environmental progress. By embracing sustainability as a strategic imperative, brands can not only meet the growing demand for Conscious products and circular services, but also shape a more sustainable and inclusive future for the luxury industry.”
ENDS
Media Contact:
FARFETCH
Susannah Clark
EVP Communications
About FARFETCH
Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves for the love of fashion, and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today, the Farfetch Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and over 1,400 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a global platform. Farfetch’s additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for the development of global fashion brands. Farfetch offers its broad range of consumer-facing channels and enterprise level solutions to the luxury industry under its Luxury New Retail initiative. The Luxury New Retail initiative also encompasses Farfetch Platform Solutions, which services enterprise clients with e-commerce and technology capabilities, and Future Retail, which develops innovations such as our Connected Retail solutions.
For more information, please visit www.farfetchinvestors.com