Luxury brands embrace escapism as traditional fashion loses appeal

The luxury fashion industry is undergoing a paradigm shift as traditional branded clothing loses consumer desire. Managers of luxury holdings are pivoting toward experiential storytelling and world-building, moving beyond physical activations into augmented reality, AI, and immersive environments. Brands like Louis Vuitton, Dior, Fendi, and Chanel now invest heavily in Cruise and Resort collections staged in exotic locations—Palm Springs, Greece, Capri, Dubai, Dakar, Marseille, and Lake Como. LVMH is developing 360-degree escapism through its hospitality division LVMH Hospitality Excellence, with Cheval Blanc resorts in the Maldives, Caribbean, and Seychelles, and the 2019 acquisition of Belmond, which operates iconic hotels (Cipriani in Venice, Splendido in Portofino, Mount Nelson in Cape Town) and the Orient Express Venice-Simplon train and river cruises. The Bulgari Hotel & Resort chain has expanded to Japan, China, Bali, and Dubai. Ferragamo's Lungarno Collection owns hotels in Florence, Rome, and Milan. Prada operates restaurants at Fondazione Prada in Milan and Shanghai, and acquired Pasticceria Marchesi. Kering's Pinault family runs dining at Bourse du Commerce. Arnault's Café and Restaurant Monsieur Dior in Paris complement the trend. The article argues that fashion brands now create entire universes for active participation, not just garments.