The fashion and apparel landscape going through a transformation, says the latest Kantar BrandZ ‘Most Valuable Global Brands’ report. Luxury's digital prowess is increasing its lead, while the growing resale market is forcing brands to rethink their sustainability and circularity strategies.

Luxury’s digital mastering

The report reveals a clear trend: luxury brands are mastering the art of digital engagement, driving significant brand value growth. This digital fluency translates to seamless omnichannel experiences, immersive virtual shopping, and powerful influencer collaborations, resonating strongly with discerning consumers.

"Luxury brands have successfully leveraged digital platforms to create aspirational and engaging experiences, fostering strong emotional connections with their audiences," explains Jane Smith, Head of BrandZ Analysis at Kantar. "This digital mastery, coupled with their inherent brand equity, has propelled their growth despite economic headwinds."

For example, Louis Vuitton, a consistent leader in the BrandZ rankings, exemplifies the power of digital innovation. Their partnerships with gaming platforms, virtual fashion experiences, and engaging social media campaigns have broadened their reach and captured the attention of younger demographics. "Louis Vuitton's ability to seamlessly blend their heritage with cutting-edge digital initiatives has been instrumental in their continued success," notes Smith. "They've created a digital ecosystem that enhances the brand experience, fostering loyalty and driving sales."

The clear trends that have emerged are:

Luxury's digital drive: Brands with robust digital strategies have demonstrated significantly higher brand value growth compared to those lagging behind.

Experience over product: Consumers are valuing experiences and brand storytelling over mere product acquisition, with luxury brands excelling in this area.

Sustainability's growing influence: The report highlights a rise in consumer awareness and demand for sustainable practices, with resale and circularity gaining traction.

Resale a disruptive force

The report also sheds light on the rapid growth of the resale market, driven by increasing consumer awareness of sustainability and affordability. Platforms like The RealReal and Vestiaire Collective are challenging traditional retail models, forcing brands to consider their role in the circular economy.

"Resale is no longer a niche market; it's a mainstream phenomenon," states David Lee, a retail analyst specializing in sustainable fashion. "Consumers are actively seeking out pre-owned items, driven by both environmental concerns and the desire for unique, accessible pieces."

And brands are responding in various ways. Some luxury brands are launching their own resale platforms, aiming to control the secondary market and maintain brand integrity. Others are partnering existing resale platforms, leveraging their reach and expertise. Many are focusing on improving the durability and repairability of their products, extending their lifespan and reducing waste.

Table: Brand ranking

The Kantar BrandZ report reveals a dynamic and evolving fashion industry. Here digital innovation, sustainability, and circularity are no longer optional, they are essential for brands to thrive in the years to come. Brands that can authentically connect with consumers, embrace digital platforms, and prioritize sustainability will be best positioned for long-term success.

The report’s overarching message for fashion brands is clear: adapt or risk irrelevance. The threads of consumer preference are shifting, and brands must weave new strategies to stay relevant in a marketplace increasingly defined by digital experience and ethical consumption.