High-end streetwear helped boost global sales of luxury personal goods by 5 percent this year to an estimated €263 billion. While streetwear has proven to bring the next generation of consumers into the luxury fold, it is a double-edged sword.
Luxury brands are adapting to changing times and striving to connect with a younger and diverse customer base, grooming the next generation of loyal luxury customers.
Luxury brands and retailers are establishing exclusive design and marketing collaborations with streetwear labels, hip-hop and rap recording artists and entertainers, and fashion and social media influencers.
Several luxury goods labels have profited from hip-hop and streetwear-inspired collections over the past few seasons. Multiple luxury fashion houses, as well as the Louis Vuitton and Givenchy brands, have been partnering with streetwear brands and introducing sneaker- and streetwear-inspired products.
Multiple luxury fashion houses, as well as the Louis Vuitton and Givenchy brands, have been partnering with streetwear brands and introducing sneaker- and streetwear-inspired products.v
Louis Vuitton partnered with the Supreme skateboard brand on a design collaboration that apparently generated €100 million ($117 million) in sales. The collection, which was sold in pop-up stores in major cities worldwide in June 2017.
According to the report the luxury goods companies will increasingly need to innovate and keep up with millennial and Gen Z trends in order to capture and grow sales among the younger generations. The historically conservative luxury goods industry is striving to attract a more diverse and younger client base.