As a New Era Beckons, What Came Before?
Between the 1950s and the present, the fashion industry underwent transformative periods that hold untapped wisdom for today’s creative leaders.
This article is part 2/12 of The Next Big Bang: The Brand Universe Solution to Growth, the inaugural research thesis by edition+partners, distributed here on SOTA. In the ever-evolving landscape of brand development, the concept of a Brand Universe emerges as both a tangible entity and a strategic methodology, offering a dynamic approach to brand survival and growth.
In last week's inaugural segment of this comprehensive 12-part report, we asserted that, within the dynamic realm of the creative industries, adopting a Brand Universe approach stands as the next pivotal strategy for launching and scaling brands.
Before delving deeper into this concept in subsequent sections, commencing next week, it’s imperative to contextualise the pivotal role broader cultural influences play in shaping clusters of transformation and ushering in new eras. Notwithstanding the unprecedented annual surge of the global fashion industry, now standing at a remarkable $2.5 trillion and steadily growing, it’s crucial to recognise that our industry operates within an interconnected framework.
Simply put, to anticipate the trajectory of fashion and its impact on allied creative domains, a profound comprehension of preceding epochs is essential — shedding light on the factors that have culminated in the imminent paradigm shift influencing the prosperity of brands today.
The Three Eras
Fashion’s evolution over the decades has woven an intricate tapestry of change. Between the 1950s and the present, the fashion industry underwent transformative periods — each briefer, and more global than the last — that hold untapped wisdom for today’s leaders across creative industries. These eras weren’t just markers of time, they ushered in profound shifts, reshaping not only style and business but also the cultural backdrops against which fashion unfolds.
The global fashion industry's influence on society and, in turn, society's impact on which brands rise and fall are themes that intertwine with these transformative periods. They underscore the intricate relationship between the two. The below eras offer more than just a trip down memory lane; they take us on a journey into the past that illuminates our understanding of the present, and offer important context for the articles that will be published in the following weeks.
Most significantly, they emphasise that in a time when the rules we have long held high are being discarded more swiftly than ever before, we stand on the brink of a fourth era, which we introduce in part 4/12 of this report launching next Tuesday.
ERA 1 | The Golden Age of Brand (1950 - 1990)
The Jet Set Takeoff: The development of faster and more affordable air travel in the 1950s and 1960s made it easier to travel the world. The post-war era saw the rise of the jet set, a group of wealthy and fashionable people who travelled the world in search of excitement. This led to an increased demand for luxury goods, as the jet set wanted to wear the latest fashions no matter where they were in the world.
A Growing Middle Class: Between the 1950s and 1960s the middle class grew significantly leading to an increase in demand for affordable luxury goods. This resulted in the rise of lower-priced diffusion lines.
The Emergence of Ready-to-Wear: The growth of the ready-to-wear market in the 1960s and 1970s, spearheaded by designers including Yves Saint Laurent and Coco Chanel, made it possible for people to buy luxury fashion that wasn’t custom-made as seen in eras prior. It made fashion more accessible to a wider range of people.
New Tech and Materials: New developments such as polyester and nylon in the 1960s and 1970s resulted in the creation of new styles running from more affordable and wrinkle-resistant fabrics like polyester to more durable and weather-resistant garments made from nylon.
The Rise of Celebrity Culture: In the 1980s and 1990s led to an increase in demand for luxury fashion. Celebrities often wore luxury brands, which helped to promote the fashion houses and make them significantly more desirable among the mainstream.
An Expanding International Market: In the 1980s and 1990s led to an increase in demand for fashion as brands expanded their global reach by targeting consumers in different parts of the world and ramping up store openings outside of their native markets. The trend was driven by the growth of the global economy, the rise of tourism, and the development of new technologies that made it easier to distribute goods around the world.
Fashion Marketing Amplifies: In the 1990s, fashion brands began to invest more in marketing and advertising. This was done to reach a wider range of consumers, increase brand awareness, and generally to increasingly drive desire around their brands.
ERA 2 | The Mainstreamification of Fashion (1990 - 2010)
The Rise of Masstige: One of the most significant changes in luxury fashion has been the rise of masstige. Masstige refers to the intersection of mass market and luxury goods and is driven by the increasing affordability of luxury goods, the growing middle class in emerging markets, and the rise of online shopping. Masstige brands sprung up throughout the 1990s and early 2000s and offered a more affordable alternative to traditional luxury brands, while still maintaining a high level of quality and craftsmanship.
The Emergence of the Fashion Group: The ascent of masstige within the luxury industry gained rapid momentum with the advent of fashion conglomerates. Between the 1990s and the late aughts, groups including LVMH, Kering, Richemont, OTB, and PVH embarked on wide acquisition sprees, solidifying their positions as the luxury industrialists of the 21st century.
Their ability to adapt to real-time shifts in global markets, retail, product merchandising, and consumer preferences earned them billions in annual revenue, ultimately allowing them to dominate the $2.5 trillion global fashion industry, leaving independent brands and smaller groups in their rear view mirror.
Asia-Based Production: During this time the major fashion groups and brands started outsourcing production to cheaper solutions based in Asia and with lower material and labour costs saw their profit margins surge. This same group then were able to pump huge amounts of this newfound margin into marketing, making big brands even bigger.
The E-Commerce Boom: Fashion has undeniably surged in accessibility largely driven by the profound ascent of e-commerce in the 2000s. Modern consumers could effortlessly peruse and purchase goods from the convenience of their homes, often securing superior deals and selections online compared to brick-and-mortar establishments. All that with a click of a button and from the comfort of their homes.
ERA 3 | The Birth of the New Luxury (2010 - 2020)
Luxury Embraces Streetwear: By 2020, over half of all global luxury consumers were projected to be under 30. Faced with the risk of losing the attention, and wallets, of younger shoppers to more affordable, culturally aware, and informal brands, traditional fashion labels swiftly adapted to their new reality.
They embraced a more relaxed look, drawing inspiration from the silhouettes of nascent streetwear and sportswear labels. Meanwhile they invested billions to transform their business models, engaging in brand collaborations, shedding their faceless brand personas by enlisted more relatable ambassadors and community members, and adopted a drop-style release schedule.
The Social Media Land Grab: Fashion brands leveraged social media's power by expanding their brand-owned accounts, including those on TikTok, Facebook, Weibo, and Instagram. This shift transformed the industry toward consumer-centric marketing through cost-effective "always-on" content. What began as digital exploration evolved into a multi-billion dollar annual social media competition, all striving for direct conversions.
Collaborations Take Over: As the attention spans of consumers around the world shortened, brands couldn’t keep up with the new generation who expected physical products at the speed of Instagram. Shortened attention spans led brands to engage in product collaborations to meet consumer demand for novelty and rapid releases.
This pivot not only transformed marketing strategies but equally disrupted the traditional fashion calendar, allowing brands to reach new audiences, explore diverse aesthetics and price points, and enter new markets and categories with the help of new partner expertise. Collaboration culture became a staple in the strategies of the majority of brands, resulting in an oversaturation of collaborative releases.
Traditional Institutions Are Challenged: At the same time, established gatekeepers faced disruption as the influencer economy and social media adoption of emerging voices flipped power dynamics on their heads. Influencer marketing became a nearly $10 billion a year global industry (it’s doubled since), especially among younger demographics, and direct-to-consumer brands rose to prominence. The top-down approach failed to adapt to bottom-up trends and technologies, leaving once-dominant leaders behind.
Production Capabilities Are Open-Sourced: Open-sourced production democratised fashion, promoting diversity and accessibility. It transformed the industry, fostering innovation, customisation, sustainability, collaboration, and heightened community engagement between brands and fans. However, challenges like intellectual property concerns, quality control, and distribution networks emerged alongside these benefits.
However, like with the passing of every new era, there is friction. As a fresh wave of ambitious brands ascends, hungry for success, they face resistance from the established old guard unwilling to change their ways. The stage is set for a clash between tradition and the vanguard, marking a pivotal moment in the ongoing generational shift.
This Thursday, in part 3/12 of The Next Big Bang: The Brand Universe Solution to Growth, we arrive at the present. We decipher how a select few gatekeepers in the luxury fashion industry have created repetitive and antiquated growth models, failing emerging brands in nurturing sustainable growth for nearly two decades, and how it has led to a boiling point today.