🛍️ The New Rules of Luxury
The brands at the forefront of a new era in fashion...
This week Highsnobiety released their annual report on changing consumer trends and the brands at the forefront of a changing luxury paradigm. The incredibly in-depth report offers insights into how brands are leveraging new channels to define themselves, marketing to consumers, and the shifting habits of shoppers. Many insights were derived from a comprehensive consumer survey, conducted in collaboration with Boston Consulting. Let’s dive into what is going on in 2024—
A Changing Landscape
6 years ago when Highsnobiety began releasing this annual report, the brands at the top of the list were drastically different. The list is almost shocking to read:
Balenciaga
Gucci
Nike
Louis Vuitton
Off-White
Calvin Klein
Prada
Raf Simons
Stone Island
YEEZY
In the span of 6 years the entire fashion landscape has changed, and many of these brands have lost a significant amount of cultural cache, are now completely defunct (YEEZY), or simply very uncool to wear (Off-White)
What is New Luxury
New luxury represents the paradigm shift in how brands operate in dynamic times of consumption. The brands leading new luxury are bucking traditions of the fashion industry for a modernized approach that resonates with new luxury consumers. These brands are ditching traditional shows, lookbooks, campaigns, and runway calendars. Think Phoebe Philo releasing her namesake debut collection in one singular drop, without a show or wholesale, or Bottega Veneta unveiling their new collection with A$AP Rocky paparazzi photos. Additionally, these brands are leaning into provocation driven by internet content and discourse. 48% of respondents said “the brands I buy need to be willing to provoke people for the right reasons.”
Who is the New Luxury Consumer?
New luxury is tailored for an emerging consumer persona Highsnobiety defines as the ‘cultural pioneer’ (Men used to go to war, now they are cultural pioneers LOL) Think of the person in your friend group who spends too much money on clothing, DMs you runway show IG posts, follows Throwing Fits, and could win a spelling bee if Ann Demeulemeester was the last word.
83% say they are the most knowledgable about brands when their friends ask. This new consumer has expendable income, and is open to trying to new things. 90% say trying new things is a part of their ethos.
The new luxury consumer’s habits are quickly shifting as fashion fragments into niche subcultures. 44% say they are drawn to things considered ugly by the ‘mainstream’ and 63% say their aesthetic tastes have grown more niche. This can explain why it feels like everything and nothing is all on trend at the same time. The reality is things are in vogue, you just may be looking in the wrong circles. The NL consumer is tapped into other culture and view their fashion as an extension of their holistic media diet. 71% say they appreciate a cultural reference in pop-culture.
In 2018, when this list dropped I remember first being drawn to watch Euphoria for the first time because Zendaya’s character wore a tie-dye Gosha Rubchinskiy shirt I had been rocking non stop that Summer. Entertainment stylists cache is rising.
Fragmented Fashion
As brands try to elevate to becoming more than just clothes, they’ve used media and content to become cultural entities, intrinsically tied with our personal ethos. They are leveraging social media and IRL experiences to become esoteric expressions of personality types.
Think of the classic IG meme starter pack, which often associates a certain type of person not only with what they wear, but the full range of brands in their life. The restaurants they go to, wear they workout, and their texting style.
56% of survey respondents say meme starter packs are an accurate representation of how people dress and behave.
A brands cultural cache is shifting from singular products, to an expression of being ‘in the know’ of a particular subculture.
How Brands are Building Worlds
Highsnobiety writes, “A product or campaign story is only the beginning of the journey. Brands now need to dedicate as much time exploring how and by whom their products and content will be adopted, as to creating those products and content in the first place.”
In our fragmented world, the collateral created by new luxury brands can have more cultural impact than the clothes themselves. We are buying a story, not just an item.
Think of the Aime Leon Dore lookbooks which are shared ad nauseam. Everyone has an opinion, and may dress in that style, but are not necessarily spending hard cash on the brand.
Other brands are leveraging external creators and brand ambassadors to convey their story on the internet. It’s paying off to surrender to the masses and lean into being a meme. Balenciaga’s most viral moment last year was an AI generated Harry Potter collaboration.
The Hottest Brands of 2024
This eclectic list is largely a total shift from the hottest brands a few years back. It shows the elevation of inexpensive brands (New Balance, Stussy) the rise of newer designers (Wales Bonner, Jacquemus) and the shift from insanely high end price points to a lower entry point.
It also speaks to the fragmentation of our habits. There is not a single person in the world who wholeheartedly identifies with every single one of these brands, rather it shows the spectrum of subcultures defining new luxury.
Cultural Cache is Shifting from Celebrities to Creators
6 years ago a Kanye West or Bella Hadid outfit could change a brands trajectory. Today, the creator is more relevant than the celebrity. New luxury consumers say they are bored by global celebrities (76%) 50% say communities formed around a common interest shape culture today. New creators like Brenda Hashtag going to a show can carry more cultural cache for these cultural pioneers.
What Does this Mean?
The landscape had forever changed. Continued fashion segmentation has us living in our own fashion bubbles. Cultural pioneers are looking to purchase clothing that connects them to a sub-culture or movement as opposed to purchasing something that represents the old guard of luxury.
The way fashion brands market is totally different and brands are rewarded for stepping out of the box and trying new things. Brands who are responsive and have their fingers on the pulse of the cultural zeitgeist will succeed. The old guard of luxury is losing relevance amongst a younger, tapped in consumer base. New luxury is not just about price, its about signaling status within a cohesive consumer construct of other relevant, connected products. Its about signaling what tribe we belong to and finding genuine quality, pieces WORTH the investment as we live in dynamic economic times.
One reader of this newsletter wrote me, “Imo this list really shows the influence of the 25-35 year old (give or take) consumer. It’s interesting to see the shift in who is spending money in this space and what we’re deeming “luxury” brands. It’s also interesting that about half of these brands would not be considered luxury 5 to 10 years ago. It’s not bad or good, just different!”
Another simply said, “Skims is 100% worth every penny” Go off queen.
New luxury is all about purchasing brands that speak to our holistic identity. Are you a miu miu coquette coded girlie, an ALD finance bro, a chrome hearts promoter, a Wales Bonner wearing film photographer, a stealth wealth Lora Piano Cipriani regular, an Our Legacy clad newsletter writer, an engaged New Balance guy, or a pilates class skims girlie?
I am so stoked to see how this list evolves as these brands expand into new categories. Miu Miu is dropping menswear soon, Loewe is doing excellent world building, and Our Legacy (my fab brand atm) is KILLING it. I just pulled the trigger on a new OL coat last night.
Thanks for reading this deep dive, hope you enjoyed. This weekend is going to be a great one, hope you all have a lovely time too. BYE!
About the Writer
Jake Bell is a content marketing and creative strategist based in NYC. He specializes in content creation, branding, art direction, creative strategy, and making things cool.
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