The Economy of ‘Quiet Luxury’ and What the Customer Base Looks Like
An economic downturn and uncertainty will typically lower consumer confidence and decrease spending, which lowers the appetite for buying more fashionable, but less wearable, apparel. Thus, instead of spending money on stylish wear, consumers will emphasize purchasing durable clothes and accessories with a longer use span. In Milan, fashion house Prada discussed an exchange "between the familiar and the exceptional” (Mclauchlan, 2023). This trend towards practicality was further underscored at the Pre-Fall 2024 Fashion Week (Vogue, 2024), where "wearable" clothing emerged as the predominant trend.
Over the past few years, there has been a noticeable shift in consumer behavior, with a growing preference for the “quiet luxury” style and brands. This trend, as described in a 2023 article from ELLE Magazine, is characterized by “new-age minimalism, with a larger focus on investment pieces and thoughtful shopping” (Archer, 2023). The appeal of this style lies in its ability to cater to the customer’s desire for fashion that is both stylish and easy to wear.
The popularity of the quiet luxury style drives luxury products, which serves as a stimulus for the circular economy. First, luxury products have characteristics that are important to a circular economy. This includes aspects such as high quality, durability, and long lifespan. (Bundgaard and Huulgaard, 2018) Nowadays, the production, consumption, and disposal of fast-fashion brands create an excessive use of resources and an increasing amount of waste. This has resulted in severe environmental problems such as biodiversity losses; air, soil, and water pollution; resource depletion, and excessive use of land (Jackson, 2009; Meadows, Randers, & Meadows, 2004; Rockström et al., 2009). However, luxury product characteristics have extended the lifespan of clothing, and consumers are less likely to discard or replace luxury items swiftly, attributing to the significant investment costs and enduring worth. Meanwhile, the circular economy greatly emphasizes maintaining and recycling existing materials and products. Therefore, there are clear links between the high quality and durability of quiet luxury clothes and the inner circles of the circular economy.
Historically, high-net-worth individuals have shielded themselves from receiving gaze from the public by wearing regular (but expensive) clothes, particularly when many less privileged individuals grapple with basic life necessities. However, in contemporary times, quiet luxury is no longer exclusive to the wealthy. Many younger generations have begun to embrace the quiet luxury style and brands. This shift brings us back to our central question: What does the customer base for quiet luxury brands look like beyond the traditional high-earning demographic?
The first type of customer prioritizes consistent high quality and timeless design, seeking pieces with enduring style and effortless attitude. They view their purchases as investments, valuing longevity over fleeting trends. Another cohort could be trend followers. These customers are always looking for the latest styles and are keen to incorporate contemporary trends into their collections. They are fashion-forward and willing to experiment with new designs, often using their attire to make a statement. In recent years, the customer base has transformed from high-net-worth individuals to trend followers or influencers, driven by the prevalence of quiet luxury (Bergin, 2023). Overall, the increasing popularity of this concept serves as a stimulus for the fashion industry, representing a sizable portion of the overall economy.
As quiet luxury continues to gain traction, its influence extends beyond individual consumer choices, stimulating economic activity and encouraging practices that contribute to a more sustainable and circular economy. This trend exemplifies how changing consumer preferences can create environmental and economic benefits, suggesting a promising trajectory for the future of fashion.
Edited by Jeffrey Wu
References
Archer, Harry. “What Is Quiet Luxury And Why Is The Trend Louder Than Ever?” ELLE, 30 Mar. 2023, https://www.elle.com/uk/fashion/trends/a43449527/quiet-luxury/
Bergin, Olivia. "Quiet Luxury Isn't Just a Trend—It's a Clever Business Model." Fast Company, 6 Apr. 2023, www.fastcompany.com/90967767/quiet-luxury-isnt-just-a-trend-its-a-clever-business-model.
Bundgaard, Anja Marie, and Rikke Dorothea Huulgaard. "Luxury Products for the Circular Economy? A Case Study of Bang & Olufsen." Business Strategy and the Environment, vol. 28, no. 5, 2019, pp. 699–709. Wiley Online Library, doi:10.1002/bse.2274.
Mclauchlan, Paul. "Economic Uncertainty Is Driving Demand for ‘Quiet Luxury’ – But Will It Last?" Fashionista, 25 Apr. 2023, fashionista.com/2023/04/wearable-fashion-quiet-luxury-fall-2023-fashion-week-trend.
Meadows, D. H., Randers, J., & Meadows, D. L. (2004). The limits to growth. The 30‐year Update. London: Routledge.
Men’s Fair. (2023). Quiet Luxury: The New Way to Dress for Success. [Photograph]. Medium. https://medium.com/@Varmasedit/quiet-luxury-the-new-way-to-dress-for-success-e4e036b1fbe6.
