Looking and feeling fabulous without hitting the spending limit on your plastic sounds like an oxymoron, right? Well not for savvy gen-yers who shop at the likes of Target and H&M (while yes H&M has been under scrutiny recently by many due to their questionable philanthropic model, I’m still keeping them on this list for now). Smart brands have jumped on the affordable luxury trend to make the inaccessible accessible to the masses as an escape and comfort in uncertain economic times. With consumer confidence at historic lows, it is surprising to find a market trend towards luxury.
But it’s a new fangled kind of luxury that is succeeding. Definitions of luxury past and present are in stark contrast. Previously, it was in vogue to believe that once the masses desire and acquire luxury products then their exclusivity and appeal disappear. However, according to Trendwatching.com, massclusivity is the characterization of luxury today; it fills “the modern man’s immense need for respect and privilege.” The new mantra touts the idea that luxury is in the eye of the beholder.
Brands who know that luxury is becoming a necessity are taking the opportunity to be creative with different price points and creating separate product lines. Gen-yers are willing to pay slightly higher prices to own a slice of luxury especially if it has a time stamp on it.
Examples of affordable luxury in retail:
- H&M’s partnership collection with Chanel designer Karl Lagerfeld and Stella McCartney had customers waiting outside of stores before they even opened. Sonia Rykiel is up next (coming February 20th).
- Target’s collaborations with Alexander McQueen, Proenza Schouler and recently Rodarte had clothes flying off the racks. Within days of Rodarte’s premiere, the only shred of evidence that the line ever debuted at my local target was the logos and photos atop the empty racks.
- JC Penny’s store-in-store concept partnership with Sephora are able to inject a dose of luxury into places consumers are shopping anyway.
I definitely see growth for the trend outside of retail, but not every brand should or can implement an affordable luxury strategy. Successful brands do so without harming the equity of their parent brand which is after all the most important in the long run.
Today’s gen-y can be seen buying drugstore makeup but demanding Starbucks only coffee and the latest iPhone 3Gs and it is perfectly acceptable. So, what does luxury mean to you? What are some of your favorite brands embracing the affordable luxury trend?
Photo Credit: casol
Mariam:
Wonderful post, I love how you resolve the tension between 'luxury' and 'for less'. Millennials know a value when they see it.
Carol
Thanks Carol! Exactly, millennials don't want to feel like they are being “cheap” when they are paying an affordable price for a brand they like.
I love H&M. Half of my wardrobe is probably H&M.
I feel like a lot of brands are advertising with the Luxe For Less angle right now… Marshalls springs to mind. But whenever I shop in Targets or JCPenny or Marshalls, I feel like it's a struggle to find the diamond in the rough.
Great post! I haven't been in a JCPenney in years but aside from the appliances selection I always felt it was just as frumpy and disorganized as Sears. I think it's strange that they have a partnership with Sephora now but it shows that they are looking to get a fresh start. JCPenney is the client for AAF's National Student Advertising Competition next year so I'll be curious to see what kinds of campaigns students can churn out. It's very likely that some students' great ideas will be somehow implemented in JCPenney's plans for a brand makeover.
Agreed. I think the problem with stores like these as opposed to actual luxury store brands is the sheer amount of clothing/items to pick from is often overwhelming and can cause chaos in your searching. In contrast, luxury brand stores have a lot of walking room and less merchandise.
I totally agree with the struggle. Unfortunately, I've also had really bad luck with H&M's clothing along with Gap and Express, and even Macys. These days I almost exclusively shop at places like Brooks Brothers and Banana Republic, not because I enjoy spending the insane amounts of money they charge–but they are about the only places I can find clothing I like that won't shrink or die after 2 washes. My experiences is you get what you pay for. So I get last seasons cloths on the sale racks, but they last a hell of a lot longer. That's my luxe!