Why low key luxury is taking over the world, August 2013

WHY LOW-KEY LUXURY IS TAKING OVER THE WORLD? AUGUST 2013

What is low-key luxury ?

Profile of low-key luxury Discreet logo or no logo at all Unique luxury quality (coveted materials, delicate processes) Confidential brands thriving on word-of-mouth

It can be niche brands or selected line of items that are less eye-catching than the rest of the brand offer

What is low-key luxury ?

MarniMaison Martin Margiela

Shang Xia Erdem

Jacques Britt

Why low-key luxury is becoming the norm ?

I. Fashion is in a state of perpetual renewal : After the whole extravaganza of the ‘bling-bling’ trend, it is time to keep a low profile

Absolut Bling Bling Lady Million , Paco Rabanne, 2010‘Celebration’, Madonna

Goldvish cell phone

Why low-key luxury is becoming the norm ?

II. Because of the economic crisis, customers now want to prove they are discerning rather than just rich.

They do not trade down to lower-price brands and stores, they limit the volume they purchase

There is a quest for meaning beyond labels. Consumers want authenticity as proved by the success of Shan Xia

Shang Xia collection

Why low-key luxury is becoming the norm ?

III. As luxury is becoming commoditized, consumers are looking for ‘niche brands’ which seem to offer more value & character

Luxury brands themselves have contributed to this commoditization with their diffusion brands to reach broader targets

Why low-key luxury is becoming the norm ?

III. As luxury is becoming commoditized, consumers are looking for ‘niche brands’ which seem to offer more value & character

Fast fashion & retailers like H&M have made catwalk looks affordable to the mass-market

Campaign 2013, Zara

ILLUSTRATIONS OF LOW-KEY LUXURY

From Mass luxury to Exclusive luxury

Versace

Louis Vuitton

Rolex

J’adore, Dior Santa Maria Novella

Patek Philippe

Bottega Veneta

Maison Martin Margiela

Growing importance of Bespoke

May it be tailor-made, customization, made-to-measure, demi-couture or personalization, Bespoke is one of the way to indulge yourself keeping a low profile

• In London, orders taken in 2010 by the 14 tailors of Savile Row Bespoke have increased by 10% compared to 2009

• Aston Martin recently announced that one major factor driving expansion at its Newport Pagnell factory headquarters is an extension of its Works Tailored department (personalization division)

Logofication is out

If logos were great boosters for luxury brands these past years, they are now more synonymous for mass luxury than exclusive luxury

Louis Vuitton aims at reducing the visibility of its famous Monogram fabric to promote models such as Capucine

Logofication is out

It also explains the success of Prada in China with its 8% increase in net profit for the first six months of 2013

Prada F/W 2013 collection

Sophistication is in

As customers seek novelty and understatement in luxury, they turn to more sophisticated brands. They become connoisseurs. More and more brands are adapting their speech to flatter these new experts.

Mulberry website Vacheron Constantin new mobile app

Grenson website

Harris Tweed label

In a nutshell

To make a fashion statement, the golden rule is now UNDERSTATEMENT

Affluent customers are looking for new ways to stand out from the crowd, low-key luxury is the answer for them

Low-key luxury customers want to be in the Know, not in the Show anymore

Proving that you know what luxury is without claiming it with labels & logos, that is the ultimate luxury experience

Next buzz word is ‘Stealth Wealth’