Insights

Research conducted by Rakuten and Vogue Business found spend from younger luxury buyers is growing 3x faster than other generations. How have designer brands evolved to win the attention of the new luxury buyers?

People are feeling increased pressure. They’re going to have a new demand for discounts as they prioritize needs over wants and make clear tradeoffs. Here’s a closer look at what’s driving this shift in consumer behavior and purchasing decisions.

Back-to-school is a long season with the potential to significantly impact brands’ bottom lines and set the foundation for Q4 success. Set your brand up for success with these steps.

In recent years, retail has proven to be flexible and adaptable, weathering economic headwinds and changing consumer behavior. How can retailers continue to maintain their resilience?

Younger consumers have the urge to splurge. Recent data from McKinsey found that 61% of Gen Z intend to splurge in 2023. Similarly, Visa found Gen Z to be the only age group that, in any given month in the past 2.5 years, was spending more than they were a year prior.

What do travel, footwear, and pets have in common? If you guessed these are some of the faster growing categories on Rakuten as of recent – that’s right. While economic pressures are driving a focus on value and savings, we’re continuing to see shoppers spend money.

In Rakuten’s last blog post, we talked about Gen Z being a key driver of retail spend. In this piece, we will dive into a few pro-tips on how to enhance their in-store shopping experience.  

Luxury is poised for continued economic resilience and steady growth. Despite market turbulence, the global luxury market grew 20% in 2022 reaching $1.65 trillion dollars.

Despite unpredictable market conditions, retail sales have remained remarkably stable. Interestingly, the National Retail Federation anticipates retail sales will grow between 4% and 6% in 2023.

Inflation has retreated from the four-decade high it reached last summer, but consumers continue to feel the impact as inflation is still higher than pre-pandemic levels.

Consumer spend remained positive through December 2022, despite consistent pressure for high inflation rates. In particular, the second half of the year saw a steady decline in inflation with the year closing at a 6.5% inflation rate.

The start of 2023 looks vastly different than the beginning of 2022. For the first time in three years, retailers are entering the new year with more predictable conditions consistent with the ebbs and flows of regular economic cycles.