Ultra-luxury vs ultra-fast fashion: the bifurcation of the fashion industry
The fashion sector is facing significant challenges stemming from the pressures of fast fashion, tariffs imposed by Trump, trade strategies from Xi Jinping, and a decline in middle-class buying power. This has led to the rise of two distinct categories: ultra-luxury and ultra-fast fashion. Ultra-luxury brands, including Hermès (established in 1837), Chanel (founded in 1910), and The Row (launched in 2006), cater to high-net-worth individuals, who, while making up less than 1% of consumers, account for 23% of the market's value. The Row's Mia midi dress is priced at $3,200. Conversely, ultra-fast fashion labels like Shein (founded in 2008) and Boohoo churn out thousands of designs each day. Shein outperformed Zara and H&M in app downloads in 2022, projecting revenues of about $50 billion for 2024, despite facing €40 million in fines in France and €1 million in Italy for deceptive advertising.
Key facts
- Ultra-luxury targets HNWIs with over €1 million in investable assets, representing less than 1% of the market but 23% of its value.
- BCG and Altagamma report that 50% of HNWIs plan to increase luxury spending.
- The Row, founded by the Olsen sisters in 2006, sells a Mia midi dress for $3,200 and Dune Sandal flip-flops for $690.
- The Row banned phones and cameras at its October 2024 Paris show.
- Wertheimer brothers and Françoise Bettencourt Meyers acquired a $1 billion stake in The Row.
- Shein, founded in 2008 in China, had 2024 revenues of about $50 billion, exceeding Gucci, Prada, Valentino, Saint Laurent, and Balenciaga combined.
- French authorities fined Shein €40 million in June 2024 for misleading sustainability claims; Italian authorities fined €1 million in July 2024.
- A dress equivalent to The Row's $3,200 Mia costs $14 on Shein including shipping.
Entities
Artists
- Olsen sisters (Mary-Kate and Ashley Olsen)
Institutions
- Boston Consulting Group
- Altagamma
- Hermès
- Chanel
- Bottega Veneta
- Loro Piana
- Brunello Cucinelli
- The Row
- Shein
- Boohoo
- Zara
- H&M
- Gucci
- Prada
- Valentino
- Saint Laurent
- Balenciaga
- Rolex
- L'Oréal
- Artribune
- Amazon
Locations
- New York
- United States
- Paris
- France
- China
- Italy
- London
- West Village
- Cernobbio
- Sicily
- Milan