hnnhcronin Louis Vuitton, Christian Dior, Prada, Yves Saint Laurent, Gucci, Hermés, etc. Everyone knows them, the brands that have dominated the fashion scene for decades, some for centuries. Yet the allure and strength of these iconic luxury brands is weakening, as younger generations run to embrace the buzz of smaller, more authentic streetwear and other disruptor brands. These new fan-favorite brands, often Los Angeles-based, have a faster production to market cycle: many of them employ the product “drop” model, in which companies release a collection of new products online and in select retail locations numerous times per year, even up to once every two weeks. This model creates excitement and a sense of urgency around the new merchandise not only due to its limited quantity but also because many brands create exclusive drop events that incorporate experiences, socializing, or technology into the product display. And these drops work: around drop periods, brands receive over 800% more engagement than at all other times of year. Though drop culture originated in streetwear companies, with Supreme often credited as the founder of this system, even long standing luxury brands have adopted the new strategies.
Whether this is beneficial or harmful to the ideals around craftsmanship and timelessness, has yet to be determined.
On one hand, in order to succeed in this market full of impatient, trend-centric customers, brands certainly need to evolve, even luxury brands. Luxury brands need to walk the fine line of appealing to the younger audience through social media and buzz-worthy drops, partnerships, and events, while maintaining the intrinsic brand DNA, which emphasizes products that last a lifetime rather than short-lived collections and chasing the trend. Some luxury brands, namely Gucci, have achieved great success adopting the strategies of the new world of fashion. However, some may say that this success was achieved as a result of abandoning the “old Gucci”, which was more product-focused and characterized by high-quality leather goods, knitwear, and evening bags. Now, thanks to a massive re-brand, Gucci has become an international status-symbol among Millenials and Gen-Z’s due to the prodigious use of logos and increased production of athleisure wear such as sweatshirts. Creative director Alessandro Michele has positioned Gucci to be an enigmatic, flamboyant lifestyle brand that appeals to a younger demographic. These changes have been hugely effective; Gucci has gained an enormous celebrity and influencer following, and 55% of sales are currently being made to those under age 35. Nevertheless, there is a tradeoff to all this success: the question of how long it will last, considering Gucci has become so intertwined with fads and fashion rather than the classic luxury market based on little marketing and extreme exclusivity.
Other brands who have not undergone a major transformation have experienced difficulty either in appearing “stuffy” and “older” to the younger demographic or deserting the fundamental values of the luxury industry that appear to long-term customers: special handmade products, a story and a legacy as opposed to branding tactics, and more simple, classic styles. Prada and Burberry, for example, have always emphasized the long hours involved and the rare and high quality materials used in their production processes to assemble their goods. These brands sell products, not lifestyles. But as the old world of fashion fades, even these heritage brands must adapt, and once they do, their loyal customers are going to have to follow.
Prada has made some strides with the launch of so called epicenters–special stores that offer very limited amounts of luxury product, while also serving as gathering spaces for interesting experiences, ranging from movie screenings to concerts to art exhibitions. Prada also sponsors nightclubs and is developing a Spotify playlist entitled “the taste of Prada” to add additional dimensions to the company and bring the products to life. Burberry has also begun following in the footsteps of these up-and-coming small brands with its 24-hour drops on the 17th of each month. Breaking from it’s reserved heritage, this iconic and very British brand wants to excite people and gives them the opportunity to purchase one-of-a-kind merchandise.
Social media has played a vital role in the development of smaller brands. In the case of drops, the constant communication with consumers regarding dates, product types, and collection character creates a community of interested and engaged followers. Additionally, starting out as an online-only brand allows brands to spend more time connecting to its customer base directly by using data analytics to assess which products and types of images to which the customers respond best. The copious amounts of time and analysis put into social media allows smaller brands to promote a more authentic brand image, rather than focus merely on driving more sales. Hugely popular brands such as Reformation, Lovers + Friends, and Stone Cold Fox place the majority of their growth efforts into social media, which in turn drives e-commerce due to the Instagram shopping feature and the impressive celebrity following acquired by these companies. Many of these brands do not own any store locations at all and instead partner with companies like Revolve or Rent the Runway in order to gain exposure. Reformation does have retail locations, but there are only 8 stores in major cities throughout the US and they operate completely non-traditionally. Reformation displays one type of each product, and customers can ask an employee via the use of technology or in-person to grab the item in their size, which the customer will then find waiting in a wardrobe in the fitting room. The company is very in-tune with making the shopping experience pleasant and clutter-free, offering more flattering lighting options as well as speakers and technology in the dressing rooms. This is the future of fashion.
While smaller brands do have less followers than internationally-recognized iconic brands, engagement rates are much higher on these platforms than on their large luxury counterparts. The followers can connect better to the photos used, which feature influencers traveling, at concerts, and out to eat, which makes the posts more fun and relatable. Luxury brands, on the other hand, showcase professional campaigns, shots from recent fashion shows, and unattainable models. The social media pages of disruptor brands inspire more of a community of individuals with similar personal styles and lifestyle aspirations. The shoppers feel like by wearing the clothing of smaller-brands, that they are joining a niche group of passionate individuals.
People are beginning to search for unique items to add to their closet rather than the must-have luxury accessory of the season. This generation is aiming to celebrate their diverse styles with characteristic pieces that not many other people own, often found at lesser-known brands. Luxury brands are beginning to recognize this, which is why in order to be successful, they must form strategic brand partnerships with the up-and-comers, create more limited-time only product drops, and sponsor events and special pop-up stores where young shoppers will want to gather.
