Luxurelief Trend Report

An exploration into small indulgences in times of hardship.

Emily Meeson - N09311751

Defining a trend... 4 ...In the Fashion Industry 5 Trend Forecasting 6 STEEP 8 Social Trends 10 Economic Trends - 11 Introducing: Luxurelief 12

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Luxurelief Innovators 16 From Trend to Runway 18 Luxurelief in Fashion Comms 20 Conclusion and Recommendations 21

Reflection 22 References 24 Appendix 43

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James Bidwell (2020) a trend spotter and author defines a trend as “the combination of various innovation data points, which allows one to conclude that there is a critical mass of change afoot.”. This depiction of a trend derives from a research perspective.

It asserts that trends come from various pieces of information (or data) which come together to develop a change.

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We can use E.M Rogers' Diffusion of Innovation model to split consumers into five groups based on when they will adopt trends. This illustrates how trends can gain momentum within communities, it emphasizes the role of tastes and consumer communities in shaping fashion trends. (See app.1 for more detail)

The risk takers.

Opinion leaders, embrace change.

Adopt before the average person.

Sceptics, will adopt after testing.

Tradition bound.

We can use this theory to understand the lifecycle of a trend in the fashion sector.

Fashion brands can use the different categories (shown above) to segment their consumers and understand how to target these different groups (Tomovska, 2020).

Noticing trends is of high importance when it comes to the fashion industry. The fashion industry needs to respond to trends to create profit.

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WGSN Lead Data Scientist Jack Shipway (2022) defines trend forecasting as “our expectations of things yet to unfold, and our attempts at describing a likelihood of them happening.” Trend forecasting is forward-looking and dynamic, much like the trends it predicts. It goes beyond statistical analysis and understands the complexity of today’s society and the fashion landscape. Trend forecasting is essential in the fashion industry. It provides insight for fashion businesses so they can anticipate consumer preferences and market trends.

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Through carrying out thorough research into the wider environment a STEEP has been formulated. This highlights both Macro and Microtrends (See app.2 & 3 for more detail).

A prominent social macro trend involves an effort to slow human ageing, which reflects the consumer desire for prolonged youth and life (Carr, 2023). Advancements in technology and science are aiding beauty, health, and wellness businesses in extending lifespans, marking a transition into a post-demographic era (Bakhtiari, 2023). A technological trend is the rise of hyperreality, which has eroded distinctions between reality and AI-generated imagery, fostering the spread of misinformation (Bakhtiari, 2023). Economic trends highlight the impact of interest rates, low productivity, slow GDP growth, and high inflation, forcing consumers to economize (Selfin, 2023).

Ecological shifts focus on climate change and it’s threat towards us all. 2023 marked a pivotal point because global temperatures passed the critical line of 1.5°C (Irfan, 2023). Macro-political trend research shows a fragmented world, which is fuelled by the tensions between China and the US, geopolitical uncertainties, and conflicts in the Middle East, Ukraine, and Russia (Berman and Siripurapu, 2023)(IMF, 2023)(Aspinall, 2023). These highlighted trends help us to understand the current climate we are living in.

Social micro trends had a focus on social media. The information overload that consumers are facing means that attention is now one of the most valuable commodities (Bakhtiari, 2023). To avoid this information overload many consumers are going “monk mode” and coming off their phones, to have a break from the social media noise (Cassidy, 2023). Younger consumers are exhibiting a nihilistic mindset, and traversing crises of today by redefining life’s meaning and challenging norms (Napoli, 2023).

Technology microtrends highlight generative AI, due to concerns of interference from AI in upcoming elections (Marr, 2023). Economic trends focus on reduced consumer spending on durable goods (Howarth, 2023). Additionally, “recession fatigue” amongst Gen Z in the UK and US is impacting their spending behaviours (Tan, 2022). Ecological micro trends surround investments in climate change solutions and the environmental impact of rising energy prices (Walkley, 2022). Politically, trends focus on how GDP growth is being affected by uncertainty surrounding the upcoming election (Selfin, 2022).

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Exploring the dynamic shifts within our society, this section navigates a spectrum of social trends. The first of trends explored through research which was highlighted in the previous section is the want from affluent consumers to slow the aging process and stay younger for longer. There has been intensive research being directed towards this process (Carr, 2023). Evolving technologies are assisting progress in beauty, health and wellness businesses which are enhancing longevity and quality of life for consumers (Houghton and Bivigou, 2023). This need to live longer, according to experts, comes from the biological desire to reproduce and preserve humankind (Brisman & South, 2019). There is a stark contrast between this social trend that focuses on wealth and luxury and the next. This trend was the impact of inflation and energy prices on consumers from a lower economic background. It was noted that families are having to eat less healthily as people can no longer afford healthier foods if they want to keep financially afloat (Sinmaz, 2023). There has also been a steep rise in the number of households living in fuel poverty. Last winter the number of households living under 18° Celsius for periods last winter climbed by 240,000 compared to the previous winter (Ambrose, 2023). Intriguingly, there is such a distinct difference between these two trends, one of which focuses on luxury and self-indulgence, and the other focuses on survival and protection of the family.

Gen Z consumer trends revealed the adoption of a nihilistic mindset, which stems from navigating multiple concurrent crises (Napoli, 2023). To cope with the bleak world, they try to find humour in the notion that “nothing matters” and are pushing back against the unrealistic idea of having it all. Trends such as “corecore” on TikTok with 8.7B views signify digital camaraderie against aspirational aesthetics like “Cottagecore,” which reflects the uncertainty and melancholy Gen Z feel. Amid this feeling of despondency, “treat culture” has emerged. Small indulgences have been reframed as a comfort and stress relief in crisis (Tan, 2023). This cultural shift has been fuelled by financial instability and serves as a coping mechanism. It is driven by accelerated trend cycles and a yearning for escapism. This evolving perception of luxury among Gen Z is expected to be redefined by treat culture.

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Since 2020, the global economic landscape has shifted due to Covid-19, political uncertainty and climate change (Howarth, 2023). This section delves into their impact on consumer spending. The UK economy is suffering from uncertainty with high-interest rates and low productivity, impeding growth (Selfin, 2023). GDP growth is slow at 0.4%, with a decline projected to 0.3% in 2024 amid election-related unpredictability (Selfin, 2023). Globally, there is a threat of Stagflation, which is characterised by persistent high inflation, unemployment, and stagnant demand (Chen, 2023), which can cause severe economic consequences (Nelson, 2022). In response, the UK government aims to alleviate the situation by raising the national living wage to £11 per hour (Morton, 2023). However, concerns persist, questioning the effectiveness of this measure against continually rising costs.

Financial uncertainty is massively impacting consumer spending. 28% of US Gen Z are unable to save (Intuit Credit Karma, 2022) and 40% are unprepared for a recession (Foster, 2022). Gen Z is seeking additional income through platforms like Depop and Vinted (Tan, 2022). They turn to TikTok and YouTube “finfluencers” for advice on diverse financial aspects, reflecting concerns about housing, meals and education. The internet is a platform where Gen Z can connect over their shared hopelessness, mirroring broader social trends. This financial nihilism prompts small indulgences, as consumers would rather treat themselves in the now than save for a future that may not even be there.

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By combining Social and Economic Macro and Micro trends and analysing the trends for patterns a new trend has been identified. Luxurelief. This trend illustrates the interplay of both social survival instincts and consumer habits influenced by economic difficulties. It reflects the conjunction of both austerity and indulgence. Many Gen Z consumers are having to navigate the balance between sustaining their needs and finding comfort and immediate gratification in affordable luxuries. The trend also acknowledges the part that social media plays in this trend.

The methodology of Hindsight, Insight and Foresight has been used to gain an in-depth understanding of the trend (Whalley, 2020).

Here are several industries that Luxurelief is affecting in the present: Treating yourself has become a prominent trend on social media. The root of this trend lies in Gen Z’s need for meaning amidst the uncertainty they are living in. The demographic is disproportionately affected by the cost-of-living crisis, which is giving them a bleak outlook on the future and their financial stability (Elliott, 2023). They are compelled into compulsive buying tendencies which are intensified by social media's rapid trend cycles (Napoli, 2020). They are turning to these small indulgences as a coping mechanism.

Compensatory Consumption (Dichter, 1960) can be used as a theoretical framework to help us understand why consumers turn to small indulgences in times of distress. The theory focuses on the relationship between self-discrepancy and the action taken to resolve this (Mandel, Wang and Lisjak, 2023). Selfdiscrepancy is the gap between an individual’s actual self and their ideal self (Higgins, 1987). The selfdiscrepancy for Gen Z consumers within this trend could be their bleak prospects and financial security. The action taken to resolve this discrepancy can take various routes or strategies. Within the context of Luxurelief however, the most fitting strategy would be “Escapism” (See app. 4 for other strategies). This is the consumer behaviour that distracts people from thinking about the self-discrepancy. The use of escapism, within this context, dictates a focus on “high-intensity sensory consumption” (Batra and Ghoshal, 2017).

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Digital: Luxurelief is developing on social media in different ways. The first is the encouragement on TikTok for consumers to indulge in themselves and “#treatyourself” which has amassed over 3 billion views on TikTok (TikTok, 2023). This trend centres around enjoying the small joys and indulgences in life, rather than looking at the negatives. Other Gen Z consumers are also expressing their response to self-discrepancy by finding humour in the darkness. Death, which they have become so desensitised towards, is now used in meme culture as a way of dealing with their stress and anxiety (Hastings-Narayanin and Rhodes, 2023).

Wellness: Gen Z is also using wellness practices as a form of selfindulgence and relief. Young people are known to be the most concerned about their mental health which is why they are using self-care routines to self-soothe and find comfort in difficult times (Indeka, 2023). 62% of UK consumers say that daily rituals are important to lift their mood (Mintel, 2022). These daily rituals can be seen as a form of self-care and treating oneself on a small scale.

Food and Beverage: We can also see this trend in the food and beverage industry as consumers use food as a form of selfindulgence. The trend of "Sweet Treats" has amassed 1.2 billion views on TikTok (2023). It encourages viewers to indulge in desserts and sweets regularly as a form of self-care.

Digital Travel: Luxurelief is also hitting the travel and experience industry. Many consumers are using mini breaks, experiences, and staycations as a form of escapism.

Consumers additionally use spontaneity to lift their moods.

Fashion Industry: Brands are adapting to the financial crisis that Gen Z are in by providing more affordable ways for them to access luxury fashion. By buying luxury fashion Gen Z can escape from their self-discrepancy. A brand called Heat is selling "Mystery Luxury Fashion Boxes" which contains luxury clothing that is two to three times more expensive than the price of the box (Indeka, 2022). This brings another level of escapism additionally due to the excitement and product discovery. Consumers also gain a sense of escapism from buying from brands that are niche and not known by many people (Tan, 2023).

The way that people are dressing is also being impacted by nihilism and escapism. Many luxury fashion brands are adopting the same nihilistic approach to appeal to their younger consumers. LS:N has named this style “Doom Dressing” (Indeka and Ventura, 2022). This way of dressing is socially and politically charged, reflecting the way that consumers feel and their bleak view of the future (Allianz Research, 2022). The silhouettes are similar to iconic designers such as Maison Margiela and Rick Owens.

Wellness

Food and Beverage

Fashion Industry Travel

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Redefinition of Luxury: Consumer's definitions of luxury will begin to shift and widen. Many consumers will begin to value affordable treats and experiences over expensive material possessions (Michaelidou et al., 2021). The concept of luxury will encompass a broader market.

Holistic Wellness Integration: Financial resilience will be combined with mental and emotional well-being to provide a more holistic and affordable approach. This may include more affordable self-care practices, so consumers can find joy amongst their challenges. Self-care is defined as holistic health and well-being of the self (Miller, Cassar, 2021), so it makes sense that it becomes more accessible.

Nihilism Becomes Tragic Optimism: Rather than staying in a state of nihilism consumers will begin to seek self-improvement. They will still acknowledge the tragedies taking place but will try to search for meaning (Bell, 2022).

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The brands and influencers mentioned here are all innovators within the trend of Luxurelief. They are doing something that ties in with the trend or carving out their way within this trend.

@thedailyschvitz Jordanna creates videos based around the small luxuries in everyday life. She posts regular videos of her enjoying her daily ritual of drinking a coffee with a nice cookie. This perfectly shows how selfindulgence can elevate your days.

@erikakullberg Erika creates skits on TikTok based on moneysaving hacks.

@clare.sullivan Clare went viral on TikTok for her #budgetluxury series, which offered viewers affordable ways to live 16 a more luxurious life.

@collegechefron They specialise in creating TikToks that teach viewers how to eat for cheap.

UltaBeauty Tapped into treat culture to showcase beauty products that consumers can purchase as gifts for themselves.

AVAVAV Their filthy rich collection mocks fashion’s superficiality. It is a parody and spoof of the fashion industry, which reflects Gen Z’s nihilistic mindset.

Depop Provides consumers with a stream of revenue if they wish to sell products. It also provides a more accessible way to access vintage and luxury items.

Rent the Runway Allows consumers to access luxury items as a temporary treat and escape from their normality.

Bankside Hotel, London Hosts in-room vending machines. These are stocked with luxury treats such as champagne and beauty products.

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Nihilism Humour

Comfort

Neutrals

Sheer

Texture By analysing imagery from trend research in comparison with runway shows from the past year we can begin to see similarities. Luxury brands such as AVAVAV are using humour and satire to relate to nihilistic consumers. It shows Gen Z consumers that the brand relates to them and “gets it”. There is also use of neutrals and sheer materials within both the trend material and in the runway shows, particularly in Spring Summer 2024.

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Small luxuries

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Within this section, two examples of how Luxurelief relates to Fashion Communications will be highlighted. These are both recent instances which show the relevance of the trend.

The first is the collaboration between H&M and Paco Rabanne. H&M has been partnering with luxury brands for several years, which has always been met with a warm response. Many see this collaboration as a way of bringing luxury to the masses (Bobowicz, 2023). This relates to Luxurelief because one of the predictions was the redefinition of luxury which we may be beginning to see through collaborations such as these.

The second example is a 2023 Christmas Campaign by Miu Miu. Within this campaign we see actor Emma Corrin lying on the floor in their Miu Miu attire opening gifts and playing board games (Malach, 2023). It could be argued that the use of objects such as gifts and games is being used within the advert to create a sense of comfort, showing the consumers to indulge in themselves.

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Brands should adapt to Gen Z’s spending habits by providing affordable options without settling on quality.

Brands should leverage social media platforms and connect with consumers using satire and escapism content.

Look for options to provide Gen Z with affordable wellness practices, show the importance of selfcare.

Understand the redefinition of luxury. Appreciate that for many, luxury now encompasses affordable treats and experiences.

To conclude, Luxurelief highlights the relationship between self-indulgence and ever-changing consumer landscapes influenced by economic challenges. Brands and communicators need to adapt, focus on escapism, look for affordable wellness options, and make luxury more inclusive to adhere to this trend.

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