BofA Analysts Say Quiet Luxury Must End for Brands to Succeed

Bank of America analysts argue that quiet luxury is hurting luxury brands’ performance

BofA Analysts Say Quiet Luxury Must End for Brands to Succeed
BofA Analysts Say Quiet Luxury Must End for Brands to Succeed

New York: So, here’s the scoop. Bank of America analysts are saying that the whole quiet luxury trend is really dragging down luxury brands. They believe it’s making it way too easy for cheaper brands to copy those high-end looks.

The analysts, led by Ashley Wallace, pointed out that this trend of going for subtle, logo-free designs is actually hurting the luxury market. They mentioned that quiet luxury is still popular, but it’s opened the door for copycats.

For example, the classic combo of a beige cashmere sweater and wide gray pants is super trendy right now. But guess what? You can find similar styles at places like COS or Uniqlo without breaking the bank.

They also noted that the lack of logos has made it easier for new players like The Row and Khaite to compete in the luxury space. These brands focus on simple, solid-colored designs, which makes it tough for traditional luxury brands to stand out.

The analysts suggested that luxury brands need to get back to being creative and offering fresh styles instead of just sticking to simplicity. They believe that logos and unique fashion content are key to keeping competitors at bay.

Interestingly, while quiet luxury has hurt many brands, it’s been a win for some, like Hermès, which reported a nice revenue bump. But overall, the luxury market had a rough year in 2024, with spending stagnating and big brands seeing their stock prices drop.

Kering, which owns Gucci and Balenciaga, saw its stock plummet over 40%. Even LVMH, the parent company of Louis Vuitton and Dior, reported a 3% sales drop in the third quarter, partly due to shaky consumer confidence in China.

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