Some brands continue to seek market share for shoppers seeking lower-priced luxury, even as competitive sales slow.
Luxury brands have shifted their focus to providing consumers with luxury for less after decades of differentiating themselves by exclusivity and customised services for a fee. Despite the fact that some brands began experimenting with inexpensive luxury as early as 2007, more companies are joining the movement as consumers seek more affordable collections and the stigmas associated with fast fashion start to disappear.
Even though certain initiatives, like Amazon’s Luxury Stores platform, have been successful, The Wall Street Journal recently reported that other businesses that target mid-tier luxury consumers aren’t doing as well. Between 2017 and 2022, the market share of the leather goods manufacturer Tapestry decreased by 2 per cent, along with Ralph Lauren and Tory Burch. Sales of so-called “aspirational goods,” less expensive products produced by premium brands, are also declining. The market share of more costly brands, like LVMH, increased from 22 per cent to 29 per cent during the same time period, nevertheless.
It may be understandable, however, why luxury brands may continue seeking to appeal to the aspirational shopper. More than one-third of consumers do not plan on cutting out purchasing expensive clothing or accessories, according to a new report.
Presumably, a significant slice of consumers who said they were likely to purchase expensive clothing or accessories in 2023 may be shopping for affordable luxury merchandise. Indeed, once-exclusive brands continue to launch lines aimed at the aspirational shopper.
