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Industry Landscape
The luxury retail industry is undergoing significant transformation, with a growing emphasis on experiential shopping, personalized services, and omnichannel integration. While e-commerce continues to grow, physical luxury destinations are adapting by offering unique in-store experiences, exclusive events, and premium amenities to attract discerning clientele. Sustainability and ethical practices are also becoming increasingly important to consumers. The market remains resilient, though sensitive to economic fluctuations and evolving consumer preferences.
Total Assets Under Management (AUM)
Luxury Goods Market Size in United States
~315 billion USD
(15% CAGR)
- Growth driven by strong consumer demand.
- Resilient high-net-worth individual spending.
- Increased focus on personalized luxury experiences.
Total Addressable Market
315 billion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
AI-Powered Personalization
AI and machine learning can analyze shopper data to offer highly personalized product recommendations, styling advice, and curated experiences both online and in-store, anticipating customer needs.
Augmented Reality (AR) Shopping
AR allows customers to virtually try on clothing, visualize products in their homes, or interact with digital content in physical spaces, enhancing the immersive shopping experience.
Blockchain for Authenticity & Traceability
Blockchain technology can provide immutable records of luxury goods' provenance, ensuring authenticity, ethical sourcing, and transparency throughout the supply chain for discerning consumers.
Impactful Policy Frameworks
INFORM Consumers Act (2022)
The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (INFORM Consumers Act) requires online marketplaces to verify high-volume third-party sellers by collecting and verifying their identity, contact information, and bank account details.
While primarily targeting online marketplaces, this policy encourages greater transparency in retail, which luxury physical retailers like Somerset Collection may need to reflect in their practices, especially if facilitating online sales or working with third-party vendors within their ecosystem.
California Consumer Privacy Act (CCPA) (2018, amended 2020 by CPRA)
The CCPA grants California consumers new rights regarding their personal information, including the right to know what personal data is collected, to delete it, and to opt-out of its sale, significantly influencing data privacy standards across the U.S.
Somerset Collection, by collecting customer data for personalized services (e.g., personal shopping, P.S. Perks), must ensure robust data privacy protocols are in place to comply with similar state-level regulations and build consumer trust.
Federal Trade Commission (FTC) Green Guides (2012, undergoing review)
The FTC's 'Green Guides' provide guidance to marketers to avoid making deceptive environmental claims for products, aiming to prevent greenwashing.
As sustainability becomes crucial for luxury consumers, Somerset Collection and its tenants must ensure their marketing and sourcing claims related to 'ethical practices' are transparent and compliant with evolving environmental marketing regulations.
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