The repositioning efforts of Coach, the renowned New York brand, have largely gone unnoticed in Europe. However, this represents a significant evolution in the “accessible luxury” sector and beyond, showcasing the sector’s ability to thrive and take risks during turbulent times.
Joon Silverstein, the Global Head of Digital and Sustainable Development at Coach, has declared that “accessible luxury” is dead. Consumer behaviors have shifted, and the appeal of accessible luxury has waned, as it solely focuses on price rather than luxury. It has become a compromise based on rationality, lacking any specific imagination.
Luxury brands excel in crisis management by adapting and evolving. In times of recession and uncertainty, it is crucial to redefine what accessibility means in luxury.
During crises, accessibility equates to excessive promotion. The constant stream of promotions associated with accessible luxury undermines the brand’s appeal. Brands like Michael Kors and Ralph Lauren have fallen victim to this approach in the past. By distancing themselves from the notion of accessibility, luxury brands can break away from the reliance on perpetual promotions.
Today, access is the new trend in luxury. Beauty products, such as makeup, perfume, and skincare, have become the accessible offerings of luxury brands. The remarkable success of Hermès and Chanel lipsticks attests to this shift. These “magical products” priced under 100 euros, adorned with visible logos, have not compromised the desirability of the brands. Recognizing this, Kering aims to establish a stronger presence in this market. In essence, beauty has become the new face of accessible luxury.
Another emerging concept is “Expressive Luxury,” which captures the redefinition of luxury by millennials and Gen Z. For these generations, luxury is a symbol of their social and environmental commitments. It embodies a progressive essence of luxury. Coach has embraced this trend by celebrating LGBT love and incorporating material recycling into its products. However, it is important not to stereotype Gen Z or the “Crunch Generation.” While their commitments are significant, style still takes precedence, as evidenced by the success of brands like Shein.
The question remains whether the concept of “Expressive Luxury” will effectively replace “Accessible Luxury.” Time will be the ultimate judge. The luxury industry has always been adaptable and innovative, continuously evolving to meet the changing needs and desires of consumers. Brands like Coach exemplify their ability to embrace change and remain relevant in a sector that thrives on evolution and resilience.
Useful Links:
1. The End of Accessible Luxury
2. Top Ten Trends to Watch in Luxury Marketing
