Luxury brands to thrive thanks to 'Middleton effect', says Barclays
The premium market will enjoy the strongest rate of growth in the clothing sector over the next three years, thanks in part to future princess Kate Middleton. According to research by Barclays Corporate, the luxury end of the high street is expected to be valued at £8.6bn in 2014.
The valuation would mean an increase of £1.9bn (29 percent) from today's estimated worth of £6.7bn.
The sector is expected to benefit from what Barclays call the 'Middleton effect', referring to the future Princess Kate, who has been photographed wearing pieces from upmarket brands Reiss and Whistles.
Jim Quantrill, retail and wholesale director at Barclays Corporate in the Midlands, said: "Kate Middleton is expected to do for many British High Street names what Michelle Obama did for J Crew in the US. Shoppers really get inspired by these big glossy images of her in styles which are very accessible."
The sector has enjoyed growth of 6.2 percent over the past two years as an additional 3.4 million consumers lent towards buying fewer, more expensive pieces and mixing and matching with value items.
Quantrill continued: "This is starting to be borne out by a subtle shift in consumer mindset which is taking shape. Consumers want quality as well as value, and are happy to trade up to buy statement pieces. That said, the value end of the market will remain buoyant and enjoy continued growth."
