"There's been a kind of a refocusing, probably an over-correction of the strategy, to focus on the top of the pyramid that was more resilient in a moment of turbulence," Claudia D'Arpizio, senior partner and global head of Fashion and Luxury at Bain told Business Insider.
"Luxury brands aim to stay forever," Blanca Zugaza Escribano, a fashion and luxury consultant at Metyis, said. "But to do that, brands need to keep an eye on both sides of the business."
D'Arpizio said that to get Gen Z back on board, luxury brands must adopt a 'high-low' strategy, part of which entails releasing affordable products that appeal to younger, aspirational consumers.
Luxury brands have neglected younger consumers in favor of the ultra-wealthy, raising prices and focusing on VIP experiences, which has backfired, shrinking the customer base by 50 million.
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