-By Ankita Dutta
The luxury sector in London could be worth between £28-30 billion by 2024, providing valuable employment opportunities for luxury manufacturers and suppliers across the UK, according to Walpole, the official sector body for luxury. The results of the 2023 Walpole Luxury London Survey revealed that 71% of respondents had a positive view of their business prospects currently, rising to 81% for the next 2-3 years.
The report also assessed the interrelation between the art and luxury sectors, which demonstrate that luxury brands draw inspiration from art and culture, with some manufacturers investing between 0.5% to 1% of their annual revenues toward cultural patronage. The London art scene plays a critical role in the luxury marketplace, fuelling inspiration, philosophy, and partnerships.
Savills’ data highlighted that the highest volume of new luxury store openings–excluding China – happened in London between 2019-2022. Additionally, luxury retailers cited the blend of well-known brands and local British luxury goods as contributing to London’s distinctiveness in the luxury landscape. Renowned luxury retail districts, such as Knightsbridge, Chelsea, and Mayfair, have attained global reputation, with 69% of survey respondents ranking Bond Street among the world’s top three luxury streets.
London’s affluent villages, including Marylebone Village, Connaught Village, Little Venice, and Shoreditch, are also noteworthy Their trend-driven retail experiences, distinctive character, and hyper-localization have made a lasting impact on those who have visited.
The presence of these villages and wealthy local residents has positioned London as a global leader in growth and investment. Currently, London has the highest number of high-net-worth individuals compared to any other city worldwide.
The report also explored the importance of customer experience, with 61% of respondents highlighting understanding and profiling local residents as essential for the success of their businesses. Luxury brands are responding to this need by providing personalized add-on services, such as personal shopping, styling, direct delivery, and in-home tailoring and fitting.
Helen Brocklebank, the CEO of Walpole, stated that the survey’s findings demonstrated that the luxury scene in London was vibrant, healthy, and confident, evidenced by the surge in new five-star hotels and luxury store openings. Brocklebank contended that the implementation of a tax-free shopping program for the next generation would safeguard London’s position as the foremost global hub for luxury goods.
The 2023 Walpole Luxury London Survey report provides insights on the future of high-end retail, the current outlook for luxury retail in London, and respondents’ level of confidence.
