Here’s why luxury fashion is booming business
Luxury fashion is now bigger than ever before. No for real, we’re not just saying that — the stats speak for themselves. According to a report conducted by the NPD Group, luxury fashion in the U.S has increased by a whopping 50% over the last few years.
This begs the question: why?
Why the boom in luxury fashion?
In short, this market is continually evolving. By this we mean, new luxury brands are launching and gaining traction not only in their traditional brick and mortar stores but also online. This means for the first time ever younger shoppers from all demographics have the opportunity to purchase designer products over the internet.
In fact, brands like Gucci have never been so popular. During the first half of 2018, they saw their sales double! Not to mention, both millennials and teen shoppers seem to love this brand. They were ranked the second-hottest brand on a survey conducted by Lyst.
Historically, luxury brands were cautious about developing an online presence. However, in 2017 many luxury brands, including the likes of Chanel, have successfully welcomed social media as part of their marketing arsenal. As you may already know, Chanel was one of the last designer fashion brands to sell their products online. Whereas, now they boast a dedicated Instagram team based in Paris.
On average, they publish anywhere between three to four posts each day and last year they managed to accrue a whopping 9.6 million new followers! This now makes Chanel the most followed luxury brand on Instagram. We don’t need to tell you that over half of Instagram’s users are aged 35 and under, which again explains why there’s been a surge of interest surrounding luxury brands by both millennials and Gen Z.
A shift in attitude
A report by Deloitte claims that this boost in popularity can also be put down to a change in consumer attitudes towards both their finances and social issues. As a nation, we’ve finally started to recover from the 2008 financial crisis, and as such, households have more money than they did ten years ago. In light of that, it’s hardly surprising people are spending more on designer gear — after all, they can finally afford it! Then, when it comes to ‘social issues’ consumers now prefer shopping with brands who show a sense of responsibility both for the environment and to their employees. This is why more and more designers are launching sustainable and ethical products.
Traditionally, menswear was neglected by many major designer brands. Fast forward to today, and you’ll find that almost every luxury fashion house produces and markets products to suit this demographic. This is especially the case with brands like Louis Vuitton, Bulgari, Dior, Gucci, Yves Saint Laurent, and Girard-Perregaux’s. All of these have made massive strides in the way they market men’s fashion.
For example, Louis Vuitton has just launched a line of high-end streetwear to appeal to male millennials.
What about Europe?
It’s not just in America where designer brands are thriving, Europe is also benefitting. The likes of Gucci, Louis Vuitton, Christian Dior, Bvlgari, and Hublot have all reported a surge in growth over the last year.
Interestingly, Louis Vuitton saw their most significant leap in sales in both their fashion and leather products; a whopping 15%. This is despite them never hosting a promotional sale or selling their products in outlets. Needless to say, they’re clearly doing something right!