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Inflation and financial turmoil are driving customers to cut back, especially in high-ticket, luxury, and discretionary categories鈥攚here credit cards are the most popular payment method. Debit spending will grow more than twice as fast as retail overall. Customers will increasingly tap the money they already have rather than accrue debt.

A discount store, for example, may not want to display ads for luxury cars鈥攅ven if it鈥檚 in the automotive aisle. 3. Triple check that the brands truly don鈥檛 compete. For mass retailers such as Amazon or Walmart, it can be a challenge to identify brands that are really non-endemic.

On the other hand, there鈥檚 a significant subset of consumers willing to spend more on premium brands鈥攁 dynamic that鈥檚 playing out in the grocery aisle as well as in other segments like luxury and apparel. This growing bifurcation means that brands will have to find ways of tailoring their messaging to each group, emphasizing price with cost-conscious customers and quality with wealthier shoppers.

Taylor Swift鈥檚 The Eras Tour entered its second year, boosting sales of everything from makeup to luxury friendship bracelets. WNBA star Caitlin Clark signed a $28 million deal with Nike, the largest ever for a WNBA player. Author Sarah J.

Fashion resale platform Depop, sneaker sites like StockX and GOAT, and luxury marketplaces Watchfinder build on thriving communities of enthusiasts to drive sales. More Amazon sellers are actively looking for additional sales channels.

Gen Z shops resale to afford luxury items. Gen Zers are turning to resale for affordability and individuality. Saving money is top of mind for 76% of Gen Z students who shop for pre-loved items, per a December 2022 Unidays survey. Popular peer-to-peer site Depop reports that 90% of its active users are under the age of 26.

鈥淢ost of our advertising partners use creators because they鈥檙e platform masters and they understand their audience,鈥� said Karin Tracy, Meta鈥檚 head of industry, retail, fashion, luxury. Creators help brands connect to the cultural zeitgeist without seeming fake or forced to younger consumers. Video ads are also crucial to reaching Gen Z consumers, said Tracy.

Currently, EssilorLuxottica holds licenses with luxury brands like Armani, Chanel, Prada, and Versace. However, some companies (like beauty brand Coty) started bringing their licensed products in-house, which could mean EssilorLuxottica loses out on those sales. It also adds to EssilorLuxottica鈥檚 own brands, which are more profitable, said Canaves.

Brand example: Athleisure brand Alo Yoga plays to Gen Z by offering affordable luxury that allows young consumers to buy a premium product at a price they can afford. By using influencers like Hailey Bieber and Bella Hadid, the brand emphasizes star quality while remaining accessible. 2. Support mental health.

Not only does this approach fulfill the brand鈥檚 ethos of accessible luxury, but it also allows it to more accurately gauge demand and price sensitivity. Grocery offers another potential use case. More supermarkets are relying on dynamic pricing to mark down goods nearing their expiration dates, allowing them to offer more discounts to shoppers while reducing food waste.

Sky Canaves: Luxury is a big one. Luxury is struggling. Home furnishings, that industry is still going to take a while to come back. DIY home improvement is still being put off. So these types of categories, these big splurges. The appliances, maybe larger TVs, and things like that. Sarah Lebow: You mentioned people will spend the money they have.

Shoppers are cooling on luxury purchases, Saks Fifth Avenue says. 4 steps to a better ecommerce strategy. Amazon and Sweetgreen find the tide has turned on positioning themselves as tech companies. Global Retail Ecommerce Forecast 2023. Yesterday鈥檚 Chart of the Day: The Gen Z gap.

鈥淐onsumers are continuing to spend on beauty even while they cut back on other areas because it鈥檚 seen as an affordable 濒耻虫耻谤测,鈥� said our analyst Sky Canaves. The lipstick effect has occurred during past recessions, but this time, it鈥檚 heightened by an increased attention to wellness and self-care鈥攁 persisting trend brought on by the pandemic. Major retailers and brands are feeling the impact.

Marketers don鈥檛 have that luxury. And the risks brands face from appearing next to misleading content or fake news鈥攐r associating with platforms that host and spread it鈥攃an't be ignored. Social media will be at the center of the brand safety storm. Many election-related concerns will come to a head on social media in 2024. Social media doesn鈥檛 necessarily cause political polarization or divisiveness.

Neither company is new to collabs, and Crocs has remained relevant through high-profile partnerships with the likes of luxury brand Balenciaga and art collective MSCHF. McDonald鈥檚 is Gen Z鈥檚 No. 3 favorite restaurant brand, according to Piper Sandler data from fall 2023. US footwear ecommerce sales growth is speeding up.

These options unlock creative opportunities for advertisers, especially those at major heritage brands and luxury labels, which may prefer showcasing products in more traditional, polished ways. 2. The shopping experience. Where TikTok wins: Frictionless in-app checkout makes it easy for users to see something, then make immediate purchases.

The retailers leaned into their most popular income groups, with TJX advertising affordable luxuries and Ross Stores highlighting affordable everyday basics. 5. Younger consumers spread out their spending. Key stat: Consumers between the ages of 18 and 44 are likelier than older generations to shop at a wider variety of retailers for food and nonfood.

That鈥檚 why it recently added a new luxury beauty brand to its product portfolio. Sarah Creal, founded by the former CEO and co-founder of Victoria Beckham Beauty, is aimed at consumers over the age of 40, the first Gen X-specific line to launch at Sephora. 2. Legacy brands are losing relevance.

Resold at Walmart is the retailer鈥檚 first destination for cross-category and cross-condition pre-owned products across categories like luxury, fashion, collectibles, and electronics. Walmart鈥檚 Collector Shop now allows pre-ordering, enabling sellers to build anticipation for product drops.

Yeah, so I'm going to talk about a luxury retailer called Space NK, and I'm going to talk about its NDULGE Loyalty Programme. It's an interesting one.

Ultra could drive up spending for Revolut by giving customers benefits for higher-cost services like travel, where spending is growing, and luxury goods. As rising credit card debt heightens the chances of defaults, building services for more affluent customers should help offset those risks.

Tyler Fairchild, managing director at luxury sneaker company Courser, has leaned heavily into paid social since the company鈥檚 2020 debut, but found that investing in photo shoots and other content helped it gain more traction. 鈥淚t shows the power of good, quality content and the value of really spreading it through as many channels as you can,鈥� he said.

Q3 2023 sales and profits were higher than expected, bolstered by more efficient inventory, lower promotions, and investments in high-performing categories such as beauty and luxury. Despite that, the retailer plans to continue reducing its operating costs by cutting around 2,350 positions. Department store sales were down 4.1% YoY in October 2023, per the US Commerce Department.

Lesson learned: MAC worked with Afterpay, not only to attract Gen Z consumers but also to use Afterpay鈥檚 segmenting and targeting options to reach luxury beauty consumers in particular. By the numbers: Gen Z accounts for the fastest-growing generation of BNPL users in the US, with growth projected at over 20% in 2023 and 2024, according to our June 2023 forecast. 5.