The luxury fashion market seems to be shifting, but what rules are industry leaders setting in the first quarter of 2023?
Key Insights:
- Certain luxury fashion brands are experiencing an unexpected jump in ranking and are setting new rules for industry creatives
- The hottest products of the season aren't necessarily the most expensive, but the ones taking the spotlight on social media
- Fashion brands looking to stand out have to think outside the lines of established industries
Each season, The Lyst Index brings industry insights into fashion’s highest-ranking brands and products, creating a roadmap for where the luxury market is headed.
The results are in for Q1 2023, and it seems like the tables have turned for some legendary fashion houses.
Consumers may be taking a more grounded approach to luxury commerce considering the hottest product of the season retails at under $20, while the highest-ranking brands are currently the ones thinking outside of the box and branching further into the entertainment industry.
Luxury Fashion Brands Ranking High
Prada dominated The Lyst Index’s Q1 2023 Hottest Brands list for the second season in a row.
Surprisingly, Prada’s sister brand Miu Miu took second place in its highest-ranking spot since the launch of The Lyst Index quarterly review. Miu Miu’s well-received brand collaboration with New Balance could have something to do with the increase in ranking, offering consumers luxury branding at an affordable price.
Moncler, Valentino and Loewe took third, fourth and fifth places, consecutively. Both Moncler and Loewe broadened their horizons by stepping into the entertainment industry.
Moncler presented an immersive live event as part of its Genius division at London Fashion Week titled “The Art of Genius,” previewing upcoming partnerships with global brands and personalities and featuring a live performance by Alicia Keys.
The event combined fashion, culture, branding, music and entertainment to create a one-of-a-kind experience in the creative industries.
Additionally, Loewe launched a limited-edition collection in collaboration with Studio Ghibli, bringing its luxury branding to new target audiences.
Versace experienced one of the biggest growths spurts this quarter, jumping five spots. Largely credited to its FW23 runway show which resulted in a 44% search increase and 39.8 million views on TikTok, its jump to eighth place proves the importance of social media virality as part of today’s digital marketing strategies.
However, an industry favourite Gucci dropped two spots to ninth place thought to be due to former creative director Alessandro Michele leaving the fashion house and an ongoing search for someone to take his place.
Social Media: The Hottest Products Have One Thing in Common
The Lyst Index’s current hottest products all seem to have one thing in common – social media fame.
At first is the Uniqlo Round Mini Shoulder Bag priced at under $20, the cheapest product ever featured as part of this report. After garnering 59 million views on TikTok, it temporarily sold out on all platforms.
On the other hand, MSCHF’s Big Red Boots modelled on cartoon character Astro Boy also “broke the internet” and resulted in this otherworldly product taking fourth place on the hottest products list.
Google searches for MSCHF have since risen by over 100% while resale prices for the boots are over double the original price.
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Breakout Brands Become Household Names
Three brands took the stage as the highest-ranking breakout brands in the industry.
Khaite, Magda Butrym and Ann Demeulemeester are finding themselves in the spotlight after being donned by the likes of Kendall Jenner, Alexa Chung and Rihanna, among others.
Celebrity sightings as well as important industry career steps such as the opening of Khaite’s first flagship store in New York contributed to a search increase for all three brands, pushing them to slowly become household names for audiences.
In the Spotlight: The Key to Luxury Brand Success
According to The Lyst Index’s Q1 2023 results, high-end fashion no longer necessarily equates to high prices. What makes a product or brand stand out today is more often who wears it than how much it costs.
Influencers, celebrities and social media fame are more likely to push a brand’s new collection forward and spread the word among a range of target audiences.
Luxury fashion brands looking to stay ahead of the curve are now taking steps to broaden their horizons through different industries, creating immersive experiences that will always keep consumers asking for more.
