The era of "silent luxury" is over; big brands change strategies.

The trend of “ostentatious luxury” is making a comeback as fashion houses struggle to innovate designs to appeal to consumers.

The arrival of a series of new creative directors at fashion houses such as Gucci, Chanel and Versace, along with the new CEO of luxury group Kering, Mr. Luca de Meo, signals the decline of the trend of “quiet luxury” to make way for impressive styles.

Analysts say this could be a turning point for the entire industry.

Speaking to CNBC last month, Carole Madjo, head of European luxury research at investment bank Barclays, said the industry is seeing a shift towards a more recognisable luxury style.

She explained that luxury fashion operates in cycles. After a few years of “quiet luxury,” she said, consumers start looking for something new. So, uniqueness and novelty are now the industry’s main focus.

The major shift in style comes as the luxury sector struggles to overcome a range of challenges, from trade tariffs to depressed consumer sentiment, following the COVID-19 boom.

Top luxury brands such as LVMH's Brunello Cucinelli, Hermes and Loro Piana have weathered the downturn largely unscathed, as ultra-wealthy customers continue to spend big on cashmere and designer handbags.

But for many brands, the discreet elegance of the “quiet luxury” trend, which took off in 2022 with the popularity of series like HBO’s “Succession,” is no longer appealing enough.

This could herald a new era where large logos, bold branding and signature designs will dominate from the catwalk to the shopping streets.

Analyst Yanmei Tang of consultancy Third Bridge said the market's appetite for many products has waned, forcing all major brands to change their creative direction to regain appeal.

Gucci, Burberry and Moncler

Burberry fashion brand is one of the brands at the forefront of change.

Under the leadership of CEO Josh Schulman, Burberry is re-embracing its British heritage after years of leadership changes, falling sales and knock-offs that have undermined the value of its signature products.

Chief financial officer Kate Ferry said on a second-quarter earnings call that the company's statement-making heritage collection is “reigniting desire for the brand” and positioning Burberry among a broad consumer base as “a luxury brand with global appeal.”

Gucci is also said to be aiming for a similar shake-up under new artistic director Demna Gvasalia, whose unconventional designs have sparked controversy at Balenciaga, a subsidiary of parent company Kering.

Kering Group's executive vice president and head of brand development Francesca Bellettini recently said that “the first signs of Mr. Demna's vision for Gucci” would appear in September, with the full collection launching in early 2026.

Fashion enthusiasts and investors have long been waiting for a catalyst to revive Gucci's business, as sales have continued to decline, especially due to weaker demand from the Chinese market.

The arrival of former Renault boss Luca de Meo as CEO of Kering next month is also expected to bring an outside perspective and branding expertise.

Madjo believes that the key is to regain the brand’s appeal. She believes that bringing something new, something fresh and unprecedented, is what can make Gucci great again.

New creative and artistic directors are also expected to bring major changes at fashion houses Chanel, Bottega Veneta and Versace, which are known for their unique styles.

Meanwhile, Moncler has chosen to experiment with rotating designers through its Genius collection, and Prada has recently highlighted visual adaptability as one of the brand's strengths.

Prada Group CEO Andrea Guerra spoke on an earnings call last month about the beauty of Prada, saying it can be both sporty and glamorous. He said it is one of the few brands that allows them the flexibility to approach the market in three or four directions at the same time.

Great Divergence

Fashion houses hope that image overhauls can help reignite waning interest from consumers disillusioned with brands after dramatic price increases during the pandemic were not accompanied by product innovation.

Luxury prices are set to rise an average of 8% in 2022, a record, compared with 1% before the pandemic and 3% from the beginning of this year through May, according to data from UBS's Evidence Lab.

Only top luxury brands such as Hermes, Rolex and Cartier owned by the Richemont group are likely to sustain significant price increases in 2025, although many others have warned that tariff policies could force them to do so.

Meanwhile, Gucci, Burberry and Prada have also raised prices, but to a lesser extent, which is likely to further deepen the divide between ultra-luxury brands pursuing discreet styles and relatively more affordable labels.

Last week, Marcus Morris, portfolio manager at asset manager Alliance Bernstein, told CNBC that price increases can only be tolerated now if there is “the right brand, the right management and the right marketing strategy.”

However, more modest pricing strategies may be necessary for struggling brands looking to regain market share and attract a larger audience.

Luca Solca, head of global luxury at research firm Bernstein, said that high-end luxury brands with a more discreet style have increased their prices significantly. According to him, brands with a more moderate pricing approach are doing well and are likely to benefit from this mid-range segment./.

Source: https://www.vietnamplus.vn/het-thoi-xa-xi-tham-lang-cac-thuong-hieu-lon-doi-chien-luoc-post1054941.vnp