Once upon a time, luxury brands were based on rarity, exclusivity, high quality materials, superior pricing and unique craftsmanship. They were purchased by high-end consumers who established a loyal relationship with them. On the contrary, fast-fashion brands ensured low prices and focused on generic and mainstream products that constantly changed. Is it still valid nowadays? Are these boundaries between luxury and fast-fashion still firm?
Today it’s common to find people combining shoes from Gucci, jeans from H&M, sunglasses from Dior, shirts from Zara and bags from Louis Vuitton. This trend of “fluid segment” is undeniable. Just opening your Instagram account you can find thousands of pictures of influencers mixing and matching different types of brands. For this reason luxury companies are considering fast-fashion as a threat and a real competitor.
The lines of the two categories are totally blurred. Fast-fashion brands adopt luxury strategies: introduction of limited-edition products, celebrity endorsement, high advertisement expenditure and store openings in prestige retail locations. On the other hand, luxury houses tend to adopt the fast-fashion production model. They increased the number of collections they produce, the speed at which they take those collections from the catwalk to the store floor, as well as the variety of products available in their stores. This approach is necessary to be considered cool and updated, but it could be risky because of a potential loss of exclusivity.
The consumers have changed in the fashion market. High levels of creativity and innovation of product design, clear differentiation of the value proposition along with a proper brand management are the keys of success for these luxury brands. Do you want to compete in the modern arena? Be aware of this ongoing trend and turn it from a threat to an opportunity… or you may lose the game!