A look at the luxury brands that are setting the trends and leading the way in the high-end fashion game.
The demand for luxury fashion brands worldwide has remained strong, driven by the wealthiest people in the world. Estimated at US$253.11 billion in 2021, the global luxury fashion market is predicted to reach US$332.98 billion in 2029, growing at a compound annual growth rate (CAGR) of 4.0%. To get you started on your designer brands-hunting journey, we’ve compiled a list of four companies worth keeping an eye on in 2023.
Whether you’re searching for a new outfit for a special event or updating your wardrobe with some new pieces, check out what these four finest luxury fashion brands are up to!
Founded by Gabrielle “Coco” Chanel in 1910, Chanel is known for its high-end products, classic designs and high quality. It sells ready-to-wear, leather goods, fashion accessories, eyewear, perfumes, cosmetics, skincare, jewelry and watches, among other things. The little black dress, Chanel No. 5 perfume, and the Chanel Suit are the company’s most well-known products.
In 2021, Chanel’s revenues rose as clothes, watches, and jewelry sales reached pre-pandemic levels, with a global revenue of around US$15.6 billion. The United States, China and France account for one-third of Chanel’s sales. Further, after the United States, China is Chanel’s second-largest market for its beauty products.
Currently, Chanel has only 250 stores worldwide. In response to increased traffic on its sites, the fashion brand plans to open specialized boutiques for customers with large budgets. They are expected to be open in major Asian markets in early 2023. It also intends to grow its human capital by employing approximately 3,500 people, many of whom will be sales associates.
Founded in 1856, British luxury fashion house Burberry is known for its classic trench coat, previously seen worn by A-list celebrities like Kate Moss and Rihanna. Burberry’s iconic check pattern is also the symbol of the brand. It’s been used on everything, from bags to shirts to suits, making it one of the most recognizable patterns in fashion today.
After seeing a dip in sales due to the pandemic, the luxury fashion brand has shifted its focus to ecommerce and social commerce. Burberry plans to invest more in omnichannel experiences by extending to in-person and virtual appointments and client events to provide its customers with a more seamless shopping experience. It also wants to keep investing in its core luxury outwear and leather categories and will work on increasing revenue with full-price sales.
Last year, the Burberry brand reworked its website to attract and keep digital customers. One way it increased interactivity was by adding videos, animations and movement into interactive product stories.
Founded by Thierry Hermès in 1837, the luxury brand is known for its traditional craftsmanship and quality materials. Hermès started by producing harnesses and saddles for the upper classes in Paris. It later expanded its offerings to include clothing, jewelry and more with its knowledge of craftsmanship as the industrial revolution changed the primary medium of transport from the horse to the automobile.
Despite the pandemic hitting the world hard, the company’s revenue grew by a whopping 42%. It reported US$10.1 billion in group consolidated revenue for 2021. The company credited its recent growth to robust performance in Asia, North America and Europe.
Going forward, Hermès is setting the foundation for its entry into web3. In September 2022, the brand submitted a trademark application to include NFTs, cryptocurrencies and the metaverse in their business model. The trademark will consist of downloadable software for viewing, storing and managing virtual goods, digital collectibles and cryptocurrencies.
Not only does Hermès plan on opening an online marketplace for buyers and sellers of virtual goods, but they also aim to offer trade events in virtual and augmented or mixed reality environments. All this comes with the goal of getting brownie points for “retail shop services” and “representing virtual goods”.
Founded in 1854, Louis Vuitton has a wide range of product offerings—from suitcases, leather goods and fashion to accessories. This luxury brand, which celebrated its 200th anniversary in 2021, is the world’s most valuable luxury company, with a brand value of about US$75.7 billion. Recent studies show it’s also the most counterfeited brand among top-level luxury brands, followed by Gucci and Chanel.
Given its 160 years of experience, the French label is now looking to expand into new markets with its upscale take on hotels. The Louis Vuitton headquarters in Paris will receive a major renovation to include the and the brand’s largest global storefront.
Additionally, the brand has announced plans to open a in its Louis Vuitton Maison store in Seoul, South Korea. The space will be designed after a vegetable garden, partnering with 3-star Michelin chef Alain Passard of Arpège.
One common thing between these four brands is their plans for tapping into social commerce and the growing tech trends to reach a wider audience—most likely the tech-savvy young consumers who prefer shopping online. We will likely see more luxury brands attempting to capture the growing spending power of millennials and Gen Z, who will represent 45% of the global luxury market by 2025.
Luxury fashion brands are poised to have a big year ahead. Do some research on these brands to make sure you’re ahead of the curve when it comes to luxury fashion!
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