Sustainable Materials and Practices: Luxury brands have incorporated sustainable materials into their products. There are number of substitutes that can replace cotton, which is a bio-degradable, natural fibre but has negative environmental impact due to high levels of pesticides and toxic chemicals that seep into soil and water supplies. The common alternatives to cotton were Linen, Alternative Cotton and Better Cotton.
Prada has paved the way for other brands by becoming the first luxury brand to sign a sustainability deal to work towards adopting sustainable practices in its strategy. Additionally, more luxury brands are becoming fur-free to combat the issue of animal cruelty.
Rise of Luxury Streetwear: The number of sneakers offered by luxury brands increased by 150% year-on-year in the past 12 months. This is a demonstration of how luxury brands positioned themselves in the market to be seen as moving towards luxury streetwear. Brands like Prada, Burberry and Fendi saw the biggest leap in number of sneakers.
Collaborations between luxury brands and sportswear brands also indicated an understanding of the market, where the collections mainly featured Tops and Outerwear – not only staple items in streetwear, but safe shapes in terms of silhouette when these items may be reaching beyond the brands’ regular customer demographic.
Next Steps for Brands
Meeting Consumer Demand: Luxury brands continue to thrive due to their ability to meet consumer demands surrounding sustainability and luxury streetwear.
Mid-market brands can use Omnilytics’ data to observe the success of sustainable materials used by luxury brands. Furthermore, brands can draw inspiration from luxury streetwear to see the current streetwear trends.
Adapting to External Market Disruptions: The coronavirus was an unforeseen disruption in the fashion industry that has caused a major slowdown in the Chinese luxury market.
Brands need to adapt quickly to changes in the market that require immediate adjustments in strategy and assortment planning. Contingency plans must be put in place to reallocate resources to other regions. Brands also need to take into consideration that the effects of the coronavirus could go on for the next few months.
With the increasing sell-out rates for online retailers following the outbreak, brands should consider switching to a more online heavy strategy to overcome the lack of customer traffic in malls and stores.
Additionally, brands that face IP protection issues can make use of the advancements in artificial intelligence to safeguard against counterfeit goods.