Luxury fashion is undergoing a significant transformation in the footwear segment. Recent runway shows have indicated a shift away from sneakers and towards moccasins and high heels. While sneakers still hold a significant presence in luxury brands’ offerings, this changing trend is causing labels to reconsider their pricing and assortment strategies.
According to a study by Retviews by Lectra, the luxury footwear market is projected to reach $40 billion by 2027, showing a 29% increase compared to 2022. This growth highlights the importance of shoes in building brand identity and the rising demand for luxurious footwear among consumers.
Despite the overall growth in the footwear market, the popularity of sneakers is declining. Resale prices for sought-after models such as Nike’s Air Jordan 1 trainers have fallen below their original retail value. Data from Retviews reveals that luxury retailers are gradually moving away from sports footwear, with the share of new releases in this category decreasing by 33% between 2021 and 2022.
However, sneakers still maintain a significant presence in the men’s market, with brands like Gucci and Prada capitalizing on the streetwear trend and successful collaborations with major manufacturers. Collaborations between luxury brands and sportswear giants like Adidas and Nike contribute to the popularity of sneakers. On the other hand, moccasins have seen a notable surge in popularity, particularly among brands like Gucci, Louis Vuitton, Prada, and Ferragamo. The autumn-winter 2022/23 collections witnessed a 12% increase in moccasin offerings compared to the previous winter season.
The shift towards dressier footwear has been even more pronounced for women. As social events and parties resume after the Covid crisis, there is a strong desire among women to dress up and refresh their wardrobes. Sandals and pumps have surpassed sneakers, comprising 34% of the total range of women’s shoes offered by luxury brands. Stilettos have experienced a 25% increase in market share in just one year.
Price differentials among luxury brands vary significantly, with tennis shoes generally having lower price points than city shoes. For instance, the entry-level price of loafers at Prada is 22% higher than that of trainers, and Ferragamo’s loafers are 23% higher. Among luxury brands, Celine offers the lowest prices for sneakers in the US market, with Gucci’s average price slightly higher at around $920. Louis Vuitton, excluding Prada’s most expensive models, stands out with the highest entry-level prices, which are 59% higher than Celine’s.
Pricing strategies also differ across regions. Luxury brands tend to maintain higher prices for men’s footwear in China, with Louis Vuitton’s prices nearly double those in Europe. In contrast, Bottega Veneta’s men’s shoes are only 14% more expensive in China. This pricing approach aligns with the preferences of China’s wealthiest consumers, as Louis Vuitton, Prada, and Salvatore Ferragamo rank among the top ten most desired footwear brands in the country. Interestingly, Louis Vuitton has implemented the highest price increases in China (+72%) and the UK (+42%) over the past year, with a more modest increase of 15% in Japan. Prada and Ferragamo have seen price increases of 25% and 20%, respectively, in the Japanese market. In the US, Louis Vuitton’s prices rose by only 8%, while Ferragamo and Prada saw increases of 23% and 24%, respectively. These variations suggest that price increases are influenced more by strategic considerations rather than economic factors such as inflation or rising raw material costs.
In conclusion, luxury fashion is currently witnessing a significant transition from sneakers to moccasins and high heels. While sneakers still hold a place in luxury brand offerings, retailers are adapting their pricing and assortment strategies to cater to the growing demand for more formal footwear options. This shift highlights the crucial role of shoes in building brand identity and the evolving preferences of luxury consumers.
Useful links:
1. Why Luxury Brands are Focusing on Shoes
2. Sneaker Trends and Market Insights for 2021 and Beyond
