3 biggest luxury fashion retail trends for 2023: Rolex just launched its pre-owned programme and basics will beat out OTT designs … but the ultra-rich will continue splurging on Chanel and Dior

Jan 5 , 2023

The Prada SpA boutique in Galleria Vittorio Emanuele II shopping center in Milan, Italy, in December 2022. Photo: Bloomberg

In the US, stimulus cheques helped beat inflation in the summer of 2022, with young consumers splashing out on Louis Vuitton bags, Versace belts and Gucci shoes

Despite a looming recession, the luxury market is expected to grow in 2023 – but experts predict customers are gravitating towards Dior goods and Hermès Birkins over small brands

Last year, about half of all adults living in the US between the ages of 18-29 were living at home, according to data from the US Census Bureau.

Between the pay cheques from their day jobs, and the stimulus checks some states offered to beat inflation in the summer, the influx of cash fuelled a boom in purchases of Louis Vuitton bags, Versace belts and Gucci trainers among young adults.

Shoppers form a line at the Ocean Centre shopping centre in Tsim Sha Tsui, Hong Kong to mark Chung Yeung Festival, a public holiday. Photo: Jelly Tse

This year, without those stimulus checks, and amid a possibly pending recession, there will be a shift in who is buying luxury items, according to Oliver Chen, a managing director in the retail and luxury section for investment bank Cowen.

“That middle-income consumer is under a lot more pressure,” he said. “There are fewer dollars for all discretionary items.”

Still, the personal luxury market is projected to grow between 3 per cent to 8 per cent over the course of 2023, according to Bain & Co.

Models present creations from the spring/summer 2023 ready-to-wear collection by French designer Nicolas Ghesquiere for Louis Vuitton during the Paris Fashion Week, in Paris, France, on October 4. Photo: EPA-EFE

During times of financial stress, Chen suggested that the customers who continue to buy luxury – like the ultra-rich – will gravitate toward major designers like Chanel, Dior and Louis Vuitton over smaller designers.

“It’s just intensification of the bigger getting better,” Chen said.

We chatted with four experts, from former merchandisers to retail analysts, to understand how the luxury retail market is bound to change in 2023. Here are the top three trends they expect to see …

1. Resale will be bigger than ever

The interiors and goods for sale at vintage shop Label Chic pop-up boutique in Central, Hong Kong. Photo: Nora Tam