The global demand for “conscious” products in the fashion and beauty sector is increasing, according to one of the findings of the third annual “Conscious Luxury Trends Report 2023” by the British luxury fashion retailer Farfetch Limited. The report examines how consumers shop more responsibly and what opportunities this presents for the luxury industry.
For example, Farfetch found that in 2022, revenue growth from aware products was 16 percentage points higher than overall revenue growth across the Farfetch marketplace. Overall, 27 percent of Farfetch customers would have purchased at least one aware product in 2022, a 16 percent increase from 2021. Also, the conversion rate for aware products on the Farfetch marketplace would be 10 percent higher than for non-aware products.
Currently, the US leads in terms of number of Conscious products sold and sales of used products. Kuwait and China combined have the highest share of conscious sales, accounting for 17 percent of GMV. The United Arab Emirates saw the largest growth in used product sales, with a 246 percent year-on-year increase in GMV.
Increasingly, consumers are proactively looking for conscious products, both in the beauty and fashion space. The past year shows a 78 percent increase in search terms related to conscious products. The most important terms in this environment were “linen”, “vegan” and “organic”. For beauty products, the top search terms were vegan, clean, and organic.
Increasing demand for second-hand products and repair services
The second-hand business is also picking up: in 2022, 34 percent of those surveyed said they had bought a second-hand or vintage item. This corresponds to an increase of 20 percent compared to 2021. Retail customers accounted for 53 percent of the GMV mix for used goods in 2022, up from 31 percent a year earlier. Prices are also on the rise: the average selling price of used items purchased by consumers in 2022 was $4,626, up 41 percent year over year. This average price is almost double the category average price.
The growing interest is also reflected in the fact that more and more customers are offering their used clothing for resale at Farfetch. For example, 46 percent of Farfetch customers sold a fashion item in 2022, compared to 22 percent who started selling in 2021. After all, 39 percent donated an article, which is almost twice as much as in the previous year. The number of repairs also increased: 34 percent of customers used this service in 2022, compared to 13 percent in the previous year.
Many customers only became aware of Farfetch because of the second-hand and repair offers. For example, 28 percent of Second Life customers and 66 percent of Refresh customers were with Farfetch for the first time, “which underscores the effectiveness of these initiatives as customer acquisition tools,” the study concludes.
Thomas Berry, Senior Director of Sustainable Business at Farfetch: “This year’s Conscious Luxury Trends Report highlights the remarkable advances being made in this area across the industry and the significant opportunities for brands to align with consumer values and contribute to positive social and environmental progress. By embracing sustainability as a strategic imperative, brands can not only meet the growing demand for conscious products and circular services, but also shape a more sustainable and inclusive future for the luxury industry.”