Chapter 1:
Luxury Brand Trends
Fashion trends come and go, but luxury is here to stay when what’s hot fades away. A few trends worth noting include the Donatella Versace and Kim Jones collaboration in May 2022. Their collection featured handbags, jewelry, and sneakers for both men and women. In June 2022, Adidas and Gucci collaborated by creating a sportswear line inspired by Italian luxury designers. These collaborations contribute to the ‘hype’ that usually surrounds the release of luxury goods. Here are the 3 main trends we are seeing in luxury.
Millennials and Gen Z
Studies show that Millenials and Gen Z will become the biggest buyers of luxury items within the next three years. However, luxury brands often don’t know how to market to them. This has forced luxury brands to become more social and to take positions on various subjects that are important to Millennials and Gen Z (gender equality, race, environment, etc.). In 2025, they should represent as a whole, over 70% of the sales taking place inside the whole universe of luxury, creating a market growth of over 130%. Luxury brands will be forced to use marketing specialists, social media platforms, and collaborations with other brands, that know better how to speak to these new buyers.
Luxury is Evolving
Instead of just being about status and logos, luxury has matured and has become purposeful. It wants a separate identity and to be part of the trending conversation. It has become socially involved, and that should only increase going forward. Luxury will achieve this through their websites and social media accounts but also through influencers and digital technology.
Online is Growing Rapidly
The pandemic forced luxury to shift to online in a hurry. The problem was how to deliver the same “experience” of buying a luxury good online as in-store. Up until this point, luxury had relied on being able to pamper customers in-store in order to justify luxury prices. Luxury brands had to pivot rapidly and establish their online stores in the blink of an eye, all the while learning this new business at lightning speed. Now this industry is set to join others where as much as 30% of their sales will take place online.
