FARFETCH Releases Its Second Annual Conscious Luxury Trends Report
- Searches for Conscious product terms on FARFETCH grew 93% year-on-year (YoY)
- Circular initiatives which extend the life of items and promote repair or resale of fashion are growing in popularity
- Boutiques and brands are taking action to meet consumer demand by pushing forward with measures to improve their sustainability performance
LONDON, U.K. June 23, 2022 – FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today publishes its second annual Conscious Luxury Trends Report looking at how luxury consumers are shopping more responsibly.
This year’s Conscious Luxury Trends Report looks at data from luxury customers' interactions with Conscious products (including pre-owned) and circular services on FARFETCH to provide a year-long snapshot of the attitudes and behaviours through the lens of sustainability. The report reveals that customers are continuing to shop more consciously and brands and boutiques on FARFETCH are responding to rising consumer demand by consolidating and increasing their commitments to improve their impact on people, planet and animals. FARFETCH uses a set of independently-backed criteria to qualify what classifies as Conscious products on the platform. For products to be Conscious they must adhere to one of the following criteria: be made of independently recognised or certified materials, have been created via a certified production process, be pre-owned or belong to a brand that scores at least a four (for large brands) or three (for smaller brands) out of five with ethical rating agency Good on You.
Key findings from 2021 include:
- Consumers are choosing to shop more consciously across the globe and the profile of customers buying conscious products largely matches that of an average FARFETCH consumer: The number of FARFETCH customers who purchased a product from our Conscious Collection in 2021 increased 60% YoY; 29% of customers in China made a conscious purchase in 2021; the average age of conscious customers is 32 (for general FARFETCH customers the average age is 34); France experienced the strongest growth globally in Conscious shopping with +149% YoY growth in GMV from Conscious products; South Korea demonstrated the biggest increase in pre-owned spend per item (ASP) at +116% YoY.
- Buying quality pieces with longevity is a key focus for FARFETCH consumers: the COVID-19 pandemic appears to have changed the way FARFETCH customers shop with 79% stating they have adopted one or more behaviours that they view as more sustainable. The most popular behaviour, cited by 79% of customers, is that they are now buying a higher proportion of luxury fashion because they believe it is more sustainable than fast fashion, being of higher quality and longer lasting.
- There is growing demand for products made with a lower impact on the planet or animals: the sale of Conscious products grew 1.8x faster than the marketplace average over 2021 driven by FARFETCH's broader offering and increased consumer interest; brands that score highly with Good On You and which are rated by FARFETCH as fully Conscious represented 49% of GMV from Conscious products, up 52% YoY; searches for Conscious terms on FARFETCH rose 93% YoY suggesting many customers are proactively looking for sustainable items; use of the Conscious filter on the FARFETCH site and app has risen 29% YoY.
- The demand for pre-owned luxury is growing, attracting high-value customers: 20% of survey respondents purchased a pre-owned fashion item in the past year; views of pre-owned items were up 150% YoY; 65% of pre-owned GMV comes from FARFETCH’s highest-spending Private Client and Platinum customers.
- Circular fashion initiatives are resonating with customers and these services are attracting new and valuable customers: customers are increasingly using services that help them extend the useful life of their items; 22% of survey respondents say that in the last 12 months, they have started selling fashion items they no longer use; 20% say that they have donated a used fashion item in the last year, while 13% say they have repaired one; FARFETCH Second Life has grown customer numbers by 195% YoY; over 70% of FARFETCH Donate customers are new to FARFETCH; FARFETCH Donate customers spend 99% more per year than the average FARFETCH consumer.
- Boutiques and brands are taking action to meet consumer demand by pushing forward with measures to improve their sustainability performance: FARFETCH now sells 220 brands that are rated highly by Good On You, up 13% YoY; The amount of Conscious product on FARFETCH supplied by the network of boutiques grew 40% YoY; GMV from Conscious products from boutique partners was up 46% YoY.
The full report can be accessed HERE.
Thomas Berry, Senior Director of Sustainable Business, FARFETCH, said:
“As the platform for luxury we have a unique view derived from over 3 million active consumers and over 1,400 luxury sellers on the marketplace. It’s clear from the data that consumer appetite for more conscious and circular ways of engaging with fashion continues to grow, and that brands are responding to the opportunities that this trend presents. In line with our Positively FARFETCH strategy, we hope the insights in this year’s report help our partners, and the wider industry to continue to think, act and choose positively”.
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 single 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.
SVP Communications, Global