The luxury goods industry is facing a pivotal moment in 2024, characterized by a complex interplay of challenges and opportunitiesEmerging from an extended phase of recovery, industry giants find themselves under the relentless pressure of achieving growth amidst a sluggish consumer market, which adds another layer of complexity to the landscape.

As brands navigate this new development stage, they are compelled to make strategic adjustments in response to the wavering performance indicatorsWhile a select few are managing to thrive despite adverse conditions, the industry as a whole continues to grapple with a downward trajectory, prompting urgent inquiries into how brands will adapt to shifting consumer behaviors and rejuvenate their standing by 2025.

Befitting an industry that often thrives on anticipation and exclusivity, as we turn our gaze towards 2025, we must first reflect on the varied performances and transformations of luxury goods throughout the previous year, particularly within the realm of fashion and accessories.

The preservation of value, once a cornerstone of the luxury narrative, is now encountering unprecedented threats

Interestingly, the modern luxury consumer's pursuits extend well beyond material indulgence; they now seek a profound melding of unique taste and enduring valueHistorically, symbols of appreciation such as timeless designs or limited editions—the sorts of treasures that mirrored artful creations—held their worth through the yearsYet, the winds of change in 2024 reveal a seismic shift in the valuation metrics traditionally associated with luxury items.

Historically, Hermes has stood as the paragon of luxury value retention, becoming the cherished "white moonlight" for collectors worldwideHowever, 2024 witnessed an unexpected disruption in this paradigm, as the understated yet enigmatic Goyard seized the crown for value preservationAs per the latest report from Rebag, Goyard outstripped Hermes with an astonishing 104% retention rate compared to Hermes’s 100%, with Chanel and Louis Vuitton trailing at 92% and 88% respectively.

This astonishing emergence of Goyard prompts inquiry; how did a brand known for its quiet exclusivity ascend to such heights? Goyard’s commitment to selective high-end production, releasing limited numbers of each creation, encapsulates the artisan's labor and creativity

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This scarcity and uniqueness have made Goyard's products highly sought after in the second-hand market—naturally buoying their retention value.

Furthermore, the brand's limited presence, with only six locations in China, has not hindered its financial success, achieving revenues exceeding 100 million EurosAs major players in the luxury market vie for consumer attention amid slowing growth, Goyard's discreet rise undoubtedly poses significant competitive challenges.

However, Goyard’s ascent is merely a reflection of broader shifts in the luxury accessory and apparel landscapeAs consumers evolve in their appreciation of luxury, the second-hand luxury market is undergoing a transformative revolutionWhile classic and limited-edition items continue to merit significant retention values, overly trendy or novel designs are often poorly received in the circular economy.

This change is driven by a shift in consumer attitudes and a diversification of market demands

Previously, luxury consumers prioritized brand recognition and design uniqueness; however, rising economic pressures are prompting a more cautious approachToday’s consumers emphasize practicality and value-for-money, seeking not just a retail experience, but rather varied consumption styles and servicesThis pivot enables classic, utilitarian designs to flourish as high-retention items in second-hand spaces.

Moreover, the digital age, characterized by the rise of e-commerce and the widespread ubiquity of the internet, presents both challenges and opportunities for luxury goodsThe advent of online shopping has rendered it considerably easier for consumers to buy and resell luxury items, thereby increasing market transparency and efficiencyIn China, projections suggest the second-hand luxury market could soar to an estimated 34.8 billion Yuan by 2025.

In this ever-evolving landscape, a movement labeled "quiet luxury" is emerging, setting the tone as a significant trend this year

Brands like Brunello Cucinelli and Ralph Lauren are not just weathering economic headwinds; they are fostering a resurgence in consumer appreciation, functioning as refreshing veins of authenticity within a crowded luxury marketplace.

Performance statistics reveal the potency of this "quiet luxury" trend: Ralph Lauren's recent second-quarter earnings indicate a 4% increase in net revenues, with an impressive 9% rise in Asia, while Brunello Cucinelli reported a remarkable 12.4% increase in revenue year-on-yearThe Zegna Group, which encapsulates the same ethos of "quiet luxury," is also riding the wave with a revenue increase of 1.7% year-on-year over the first nine months of 2024.

The question then arises, what catalyzes the rise of quiet luxury during uncertain economic climates? Echoing financier George Taylor's "hemline index," which posits a connection between distractions in fashion and economic conditions, the current trend showcases affluent consumers seeking understated luxury without the flashiness that typically accompanies consumption

Instead of expressing wealth through ostentation, they prefer simple elegance that underscores personal style and intrinsic values.

Moreover, everyday consumers are subtly adjusting their purchasing patternsEconomic concerns have cultivated cautious spending habits, compelling a search for higher quality and durability in fashion choicesThis rise in appreciation for quiet luxury aligns perfectly with those brands that emphasize excellence in fabric, craftsmanship, and timeless design, allowing consumers to find satisfaction in both fashion and quality.

The influence of quiet luxury is not confined to select brands; it has redefined dynamics across the luxury sectorEven LVMH, years ago, placed its bets on the understated label Loro Piana, firmly endorsing it as the pinnacle of the cashmere genreLoro Piana's craftsmanship in items ranging from cashmere outerwear to wool sweaters has garnered substantial market approval

CEO Bernard Arnault's commentary illustrating Loro Piana’s exceptional growth underscores the level of consumer dedication towards this trend of quiet elegance.

As the movement towards quiet luxury gains momentum, it's reshaping the luxury market's horizon by emphasizing that true luxury extends beyond mere accumulation of goods—it's about intertwining taste, substance, and qualityAs consumer preferences continue to evolve, quiet luxury stands poised to maintain its unwavering strength within the luxury market landscape.

Concurrently, a trending robustness within the outdoor apparel segment cannot be overlookedThe "Zheng Qinwen effect" epitomizes the transformation occurring as the Paris Olympics looms, orienting consumer interests towards an active lifestyle.

Once predefined as wear suited for particular environments, outdoor brands now occupy a impressive niche in households of middle-income consumers, commanding notable attention and becoming an integral part of luxury fashion circles.

This outdoor trend arises from a synergistic blend of technological advancement and heightened living standards, where consumers strive for quality experiences and a return to nature

Performance indicators support this trajectory, indicating robust growth within the segment.

A snapshot of the performance metrics illustrates an invigorating landscape: Amer Sports recorded $3.548 billion in revenue—a 15.5% annual growth—while lululemon’s net revenue surged to $7 billion, reflecting a 9.375% increaseSimilarly, Swiss brand ON achieved sales of 171.19 million Swiss Francs, surging 13.086%.

Insights from a recent "2024 Luxury Outdoor Apparel Trend White Paper" reveal the underlying motives propelling this movementBolivia's rich array of activities—such as snow travel, luxurious camping, and water sports—has become synonymous with modern consumer pastimesWithin this sphere, outdoor apparel sales show exponential growth especially for items priced between 2000 and 3000 Yuan, where growth exceeds a staggering 150%. Wealthy middle-class individuals are reported to spend an average of 22,787 Yuan on outdoor clothing, with nearly a third indicating increased spending habits.

Luxury brands are keen to seize this opportunity, strategically veering into the outdoor apparel market, aiming to carve out their niche in this burgeoning sector

Unlike their purely athletic counterparts, luxury brands excel in narrating engaging stories, using romanticized depictions of outdoor living to pull in consumersCollaborations, such as Dior’s partnership with outdoor brands like AK SKI, and Chloe's union with French snow gear brand FUSALP, illustrate the synergy of luxury and active lifestyle offerings.

Nevertheless, consumer preferences remain fluidMany persist in favoring established outdoor brands that possess specialized knowledge of the terrainThey remain wary that, while luxury brands may adopt outdoor themes, they might lack the integrity and specialization of premier outdoor players, running the risk of appearing as mere brand imposters.

This burgeoning affinity for outdoor pursuits presents both newfound growth avenues and heightened expectations from luxury housesThe pressing inquiries now center around how these luxury brands can distinguish themselves amid fierce competition yet still cater to diverse consumer needs while preserving their inherent luxury identity.

Reflecting on 2024, it's evident that the luxury fashion and accessory sector has undergone a notable metamorphosis, yielding new trends that resonate with contemporary economic realities