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

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.

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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

Luxury resale has long fallen under the domain of vintage boutiques, thrift stores and, more recently, online marketplaces like The RealReal and Vestiaire Collective.

Next year, experts expect to see more luxury brands taking control of their own second-hand markets. Rolex, for example, already launched a certified pre-owned programme for its watches in early December 2022.

Rolex launched a certified pre-owned programme for its watches. Photo: Shutterstock

Olivia Steele, the CEO of a virtual retail sales company called Conversation Couture, linked the interest in resale to a growing focus on sustainability among luxury brands.

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Two experts predicted that in the coming years, designer boutiques will be outfitted with their own resale section.

2. Customers want to return to basics

Mr Bags (third from left) with fellow influencers Yoyo Cao, Bryanboy and Yuyu Zhangzhou at the Gucci show during Milan Fashion Week in September 2022. Photo: Handout

Over the past year, luxury fashion has revolved around “Zoom tops” – professional shirts suitable for remote work meetings – ruffles and over-the-top designs, said Brooke Cundiff, a former buyer for Saks Fifth Avenue who’s a co-founder of the e-commerce platform Cortina.

Cundiff contended that customers have grown tired of walking into a luxury department store and seeing extravagant items, like a sweatshirt, for US$1,000.

Chanel Cruise 2022-2023 show in Monaco, in May 2022. Photo: Chanel

Alessandro Michele’s November departure from Gucci was evidence of that, Cundiff said. In his seven years as the brand’s creative director, Michele had made a name for himself through maximalist designs.

Now, customers – even the most high-flying ones – are looking for simpler, more tailored pieces they can wear repeatedly.

3. Mid-tier luxury might take a hit

A model presents a creation from the autumn/winter 2022-23 haute couture collection by French designer Virginie Viard for Chanel fashion house during the Paris Fashion Week, in Paris, France, in July 2022. Photo: EPA-EFE

Three experts noted that designers at the high end of the price spectrum will continue to see strong demand, especially from the 1 per cent. These are brands like Hermès – known for its Birkin bags that range in price from tens of thousands to hundreds of thousands of dollars. Or Chanel, where a pair of ballerina flats retails for more than US$1,000.

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Cardi B and her collection of Birkin bags. Photo: @iamcardib/Instagram

But the “aspirational luxury customer” who may have used their discretionary income last year to buy a US$500 pair of shoes from a mid-priced designer might pull back, two experts noted.

Accessories are still likely to perform better than ready-to-wear items like apparel in a recessionary environment because of their longevity, said Cundiff.

This article originally appeared on Insider.

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Fashion

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