The global market for luxury items was priced at $316.16 billion in 2019. However, it experienced a decline in 2020 due to the COVID-19 pandemic. Fortunately, the market is expected to grow at a rate of 4.6% by 2027.
Moreover, the personal luxury goods market is the most lucrative category, with its growth rising consistently over the decades. Furthermore, statistics reveal that luxury fashion is the strongest niche, with Louis Vuitton being the leading luxury brand. As of 2020, the legendary giant was valued at $51.7 million, followed by Chanel and Hermes, valued at $36.1 million and $33 million, respectively.
Luxury brands captivate many fashionistas due to their high quality and durability. For others, these fashion items increase their confidence levels, making them a needed part of their wardrobes. However, what does luxury fashion mean? This article sheds more light on what luxury fashion means and how brands earn the luxury title.
What does luxury fashion mean?
Luxury is hard to define as it’s expensive yet not overpriced. It is also unique, futuristic, and aesthetically pleasing. Moreover, it can be rare and difficult to access. Luxury fashion refers to clothing and accessories which are expensive, high-quality, prestigious, exclusive, and authentic. It is also determined by the following perimeters: price, aesthetics, quality, symbolism, rarity, and extraordinariness.
Luxury fashion items are typically more expensive than other products in their respective categories. Their high-quality production means you don’t have to throw them away quickly due to their durability, as you can easily fix them even after prolonged use. Additionally, they are visually pleasing and are usually combined with other fashion accessories to create the most elegant look. Unlike mass-market items, luxury fashion brands have limited production to increase their rarity and value, distinguishing them from others.
How do brands earn the luxury title?
According to Fashion experts, luxury isn’t constant, as consumers frequently change their perception of luxury items. That’s why brands must be very innovative and agile to attract the attention of luxury customers. Here are some ways brands earn the luxury title.
1. Superior performance
For brands to be categorised as luxurious, they should surpass their competitors in their function and performance. For instance, Italian fashion designers such as Dolce & Gabbana have dominated the women’s fashion industry due to their bold fashion statements and practicality. Shinola’s Runwell watch is also a favourite among U.S presidents, indicating superior performance than other brands. That said, luxury brands have a unique core competence that others can’t imitate and appeal to fashionistas, increasing their rarity and value.
Any brand seeking to be tagged as luxury must constantly be innovative. Consumer tastes change frequently, and sticking to old fashion styles might earn that brand an archaic label. Therefore, it’s imperative to adapt to the emerging trends to keep up with today’s fashionistas. Successful luxury brands adopt effective strategies to create new additions while maintaining their traditions. By doing this, they satisfy the emerging fashionistas without having to change their brand.
However, these leading brands don’t come up with ideas overnight. Often, creativity is needed to keep the luxury business thriving. For instance, Louis Vuitton introduced a pop-up store through the we chat mini-program during the 2019 valentine’s period. This resulted in increased online sales amid the pandemic, as people could place orders from the comfort of their homes.
A fashion brand loses its appeal and lustre when it becomes readily accessible to all and sundry. That said, luxury brands earn their title due to their exclusivity and rarity. Moreover, Business of Fashion revealed that Gucci, Chanel, Dior, and Louis Vuitton achieved solid financial gains by developing unique fashion items for high prices. Additionally, their one-of-a-kind marketing campaigns made their products more exclusive than lower-priced types, earning them a spot on the luxury brands list. The adoption of digital marketing has also increased its appeal to both the elite and aspiring classes.
4. Social responsibility
With the world increasingly moving towards sustainability, luxury brands can remain relevant by emphasising their social responsibility. Gen Z and millennial consumers, who now make up 85% of luxury sales growth globally, are more conscious of their purchases’ social and environmental impact. Therefore, they are more likely to patronise brands that are geared towards sustainable and ethical luxury. A Nielson study revealed that 73% of respondents would spend more on a socially and environmentally conscious product. Tiffany’s diamond Luxury brand has adapted to this trend by sourcing its precious gems and metals from ethical mining companies. Additionally, they have zero tolerance for patronising diamonds from nations that don’t defend human rights.