Consumers are fed up with luxury according to new Lyst ranking

Seismic changes rarely appear in Lyst’s quarterly rankings: more often, the fashion geography described by the report shifts gradually, much like it does in nature. That was not the case in the last quarter. First, because even with a stable Top 3, where Miu Miu returned to the top swapping places with Loewe, the luxury sector and brands from the LVMH and Kering block have noticeably lost ground; second, because a wave of new players has forcefully entered the ranking. The most surprising entry is definitely Alaïa, which made a huge leap of 12 spots to fifth place and a 51% increase in searches. Newcomers also include Toteme, Victoria Beckham, Ralph Lauren, and Chloé. Another brand already present but making a big jump is Coach, which is accelerating the growth of its reputation (and presumably sales) thanks to its accessible luxury offerings. According to Lyst, there was also a 109% increase in sales for “premium contemporary” brands, referring to young and alternative brands to traditional luxury, such as NN.07, Stone Island, and Entire Studios, though they don’t appear in the ranking. Positive results were also recorded for Gucci and Valentino, the only brands from major groups on the rise, while Balenciaga, Versace, Moncler, and Louis Vuitton all lost positioning, slipping down the ranking. On the other hand, The Row performed excellently, climbing seven positions, bolstered by a new store in Paris and new and significant investors.

Interesting for a quick diagnosis of consumption is the ranking of the most searched-for products: aside from luxury items like Alaïa’s ballet flats and Miu Miu’s Arcadie bag, the rest of the ranking is dominated by the accessible luxury category. Puma’s Speedcat and Clarks Original’s Wallabee shoes, Coach and Longchamp bags, all priced below €600; Ganni biker boots, Tom Ford sunglasses, and pants from The Frankie Shop. The most expensive item is a Toteme jacket at €730, a price that would only get you a pair of jeans from a luxury brand—if you're lucky. Aside from a few standout pieces, it seems that the items the global fashion audience is seeking are no longer luxury products but come from relatively new brands or recently revitalized ones, offering quality products at relatively affordable prices. This is quite surprising in the handbag category: while Miu Miu’s bag remains the only true luxury example on the list, the presence of Coach’s Brooklyn bag and Longchamp’s Pliage shows that customers are starting to find valid alternatives to what they might have saved up for 10 or 20 years ago, perhaps for a special occasion. According to Lyst, Gen Z has played a role in this shift, driven, in short, by their “invisible hand” that, through a slow and collective process, is changing consumer demand priorities.

What conclusions can be drawn from the third-quarter ranking? The picture painted is one of a luxury industry in a deep state of transition, where currents are lifting brands capable of breaking the barrier between the aspirational world of social media and the reality of purchases—a barrier that, for many traditional brands, seems increasingly difficult to overcome. Traditional luxury, burdened by its prices, is losing its grip on the public. It doesn't help that luxury houses have not appeared able to demonstrate, not so much their excellence, but their superiority over brands like Coach, Ganni, or Toteme, as well as The Frankie Shop: it’s all the same cotton, the same leather, the same suede—nothing beyond branding justifies such a prohibitive expense as that demanded by luxury. In response, consumer preferences and interests are shifting, and rewarding other producers, and above all, other products. This, however, is just the first half of the match: the toughest part will be played in the final three months of the year, during the Christmas season, when all brands, big and small, will compete for the largest share of consumers.