Rise and Fall of Mass Luxury

Mass luxury was a hit as soon as the 1970s with brands like Diane Von Furstenberg and Pierre Cardin licensing away their name and maximizing their earnings. Then in the 1990s, the phenomenon reached its peak with 2 strategies:

• Designers created their second lines, CK, D&G, DKNY, Versus... to appeal to younger consumers who couldn't afford their main lines.

• Brands created smaller and cheaper goods to sell their logo and their names to a broader consumer base.

This was the height of the logomania, and the no-logo movement. Everything was good as long as it was plastered with a monogram. This was also the height of counterfeit products.

The economic hardship of the 2000s, the ensuing consumer logo fatigue changed the perception of the mass luxury market. The growth also brought commoditization, and it became dangerous for luxury brands. Damaging the brands with generic products, the core luxury consumers started to question the authenticity of the supposedly prestigious labels which where not exclusive or qualitative anymore. In the same time, retailers like J. Crew, COS, & Other Stories offered low-priced premium products combined with retail experience, design and quality manufacturing (now that technology and manufacturing standards rose while getting cheaper).

Brands start to balance wether short term results can damage long term equity. D&G closed in 2011, Gucci repositions as an heritage brand, Burberry becomes desirable again... For most brands that played the game of mass luxury, the issue now is to go back to rarity, exclusivity and exceptionality.

Growth for luxury brand doesn't equal selling more products to more people anymore, but to get back to basics: unique products, singular experiences for a consumer who will be able to appreciate it and buy it. Sell less and better.