Resale, rental and NFTs: Vogue Business Index reveals top trends in innovation

In all, 36 per cent of brands are available on leading rental player Rent the…

In all, 36 per cent of brands are available on leading rental player Rent the Runway. In most cases though, these partnerships are limited, with most Index brands renting accessories rather than clothing.

Fashion consumers covet traceability

One development that could hasten brands getting involved in resale is the wider use of blockchain technology to trace product journeys in fashion and guarantee authenticity. A significant minority (41 per cent) of luxury consumers are excited about the development of traceability features, with enthusiasm particularly high among Chinese shoppers (58 per cent).

LVMH fast-forwarded this process by giving all of its brands access to the Aura blockchain system it developed in 2019. The involvement of the LVMH group means 30 per cent of brands now have the capability to collect traceability details of their products via technologies like blockchain. The group stated in April that all products would have traceability information by 2026. Other brands recognise the customer concern around authenticity, with 58 per cent having a dedicated website page on the subject.

Virtual consultations and video shopping

Pandemic restrictions and hesitancy to visit stores increased online video consultations with consumers. Less than half (43 per cent) of brands now allow consumers to book digital appointments with customer service representatives. There is room for improvement: shoppers can book physical appointments online with seven out of 10 brands.

Store staff have been upskilled to deliver video consultations at Gucci’s Via Monte Napoleone store in Milan, with Moda Operandi, Neiman Marcus and Brunello Cucinelli among the other brands with an added focus on video consultations for clientele.

Some of this energy suggests aims to replicate the mammoth $171 billion market for live commerce in China, where an online livestream broadcast is linked with an e-commerce store. Many brands hope that video social platforms such as Tiktok and Instagram might soon herald a similar trend in the West. Many brands hope that video social platforms such as Tiktok and Instagram might soon herald a similar trend in the West. Goldman Sachs and Kering recently led a $50 million funding drive for new video-shopping platform Ntwrk.

Video consultations are viewed as important by 33 per cent of luxury consumers globally, significantly lower than other more established omnichannel features such as click-and-collect. As brands such as Louis Vuitton have discovered in China, however, it can be a strong way to maintain a link with key, high-spending clientele.

NFT party is in full swing

Few digital technologies have been embraced with as much relish by luxury brands as non-fungible tokens (NFTs), whose exclusivity and status align so closely with the industry. While the mechanics and use-cases are still being worked on, the marketing benefits and potential of future returns are luring brands in.

https://www.voguebusiness.com/companies/resale-rental-nft-vogue-business-index-trends-innovation