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How fast fashion is shaking up the luxury industry

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How fast fashion is shaking up the luxury industry

Younger consumers used to Zara, Shein and Boohoo now expect the same speed to market from Gucci, Burberry and Coach. As part of The Drum’s Fashion & Beauty Focus, we explore whether these high-end brands risk losing their prestige by appeasing the next generation of shoppers.

Luxury fashion, once defined by its exclusivity, meticulous craftsmanship and deliberate production pace, is facing a significant transformation.

The rise of fast fashion giants such as Zara, Shein and Boohoo has conditioned consumers to expect constant newness. In response, luxury brands are feeling the pressure to keep up. According to Glossy, brands such as Gucci, Burberry and Coach have sped up their production processes to release collections more frequently.

“Luxury brands are doing what any business does and trying to remain competitive through innovative strategies,” explains Jeanel Alvarado, founder and chief executive of news outlet RetailBoss. “Fast fashion has changed the way younger generations shop and they’ve changed customer’s shopping habits and expectations.”

However, this shift comes with challenges, particularly around the issue of quality. As Vogue Business’s Amy Francombe observed, “There’s a growing disparity between quality and the end price charged for luxury products – and consumers are wising up to it.”

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The fast track shift: speed to market & see now, buy now

A key shift in luxury fashion is the sector’s embrace of faster production cycles and immediate availability. Brands such as Gucci, Ralph Lauren and Burberry are adopting speed-to-market strategies that mirror fast fashion’s rapid turnaround. Gucci’s Art Lab in Italy, for instance, focuses on expediting the production of leather goods and shoes, allowing the brand to release new collections faster than ever.

“Speed to market is a core element of retailing,” explains Alvarado. “With advancements in technology, such as 3D modeling and robotics, increasing speed will be easier than ever.”

Other experts share similar concerns. Juanita Carmet, a seasoned fashion strategist who has worked with brands including Fila, Red Carter and US Polo Assn, stresses that quality cannot be rushed.

“Faster cycles mean corners are getting cut and quality is being compromised, whether it’s the stitching that isn’t precise or cheaper materials being used,” she says. While some consumers might not notice these changes immediately, Carmet warns that, over time, “people will definitely start to realize their expensive purchases aren’t actually up to standard.”

This desire for speed has also led luxury brands, including Burberry and Tom Ford, to adopt the ‘see now, buy now’ model, which allows consumers to purchase items immediately after their runway debut.

This approach breaks from the traditional luxury model, which typically involves a wait between presentation and availability. Alvarado notes that younger consumers find the previous model outdated: “Younger generations find it strange to be unable to buy an item online; it causes unnecessary friction at the point of sale.”

Partnerships with fast fashion retailers

The line between luxury and fast fashion continues to blur as collaborations between these market segments become more common. High-end designers such as Versace, Moschino, Mugler and Balmain have partnered with H&M to release exclusive collections, making luxury items more accessible than ever.

Alvarado believes these collaborations can actually enhance trust among younger consumers. “Many younger shoppers have only experienced the brand through digital campaigns, social media, and online,” she says. “By selling at a fast fashion retailer, a Gen Z shopper can confidently shop – and with a bonus at a more affordable price range – for their first designer piece.”

Jennifer Hinton, chief creative officer of surf apparel brand Carve Designs, agrees: “I don’t feel like it has a bad effect on brand identity. I think it actually gives the average person more accessibility and the ability to own something high-end without the high-end pricing. It [also] allows the luxury brand wider brand awareness.”

While some see these partnerships as a win-win, enhancing brand accessibility and trust, others aren’t so sure.

“This could lower the perceived value of the luxury brand and break consumer trust,” says Nguyen Tran, founder and chief executive officer of luxury ethical fashion brand Le Réussi. “It’s crucial that luxury brands maintain their standards and values when entering such partnerships.”

Carmet echoes this concern, describing the collaborations as “tricky.” She acknowledges their business benefits but also highlights the potential pitfalls: “When you see something like a Versace x H&M collection, it makes you question the brand’s value. It diffuses brand equity and makes it harder for consumers to determine what’s truly luxury any more.”

Mapping out luxury’s new strategy

So, how can high-end brands maintain their prestige while appealing to new generations with shifting expectations? Some believe that luxury brands must stay true to their craftsmanship.

“The authenticity of luxury brands lies in their design, quality and brand story,” says Tran. “As long as they maintain these elements, adopting faster product offerings won’t undermine their authenticity. Consumers will continue to see value in luxury brands if they stay true to their core values.”

While some, including Tran, argue that luxury brands must double down on craftsmanship, others, including Hinton, believe sustainability initiatives could offer a path forward. She suggests that luxury brands should look to take-back programs initiated by Zara and The Real Real as inspiration.

“The problem is, what are we doing with all these clothes?” she asks. “It would be amazing to see luxury fashion houses create their own take-back programs… If they get 100 of the same dresses returned, they could recreate them into something new.” She adds that the rise of thrift shopping could present an opportunity for luxury brands to rethink their production practices.

Yet, Carmet cautions that embracing sustainability initiatives alone won’t solve the authenticity crisis. “When luxury brands start copying fast fashion, they lose their special touch,” she argues. “It isn’t just the name or logo; it’s the craftsmanship, the materials, the attention to detail – the product quality that gives them their competitive edge. Luxury brands need to focus on creating pieces that are truly worth the incredibly high prices they charge. They should be the trend-setters, not the other way around.”

Alvarado adds that it’s not necessarily about adopting fast fashion practices wholesale but about understanding and adapting to the habits of the next generation of shoppers. “Luxury brands need to match the habits of the next generation of shoppers,” she says. “It’s not about adopting fast fashion practices as much as it’s about keeping up with younger consumers.”

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