Affordable Luxury Takes Center Stage in Women’s Fashion at Department Stores

The landscape of women's fashion in department stores is shifting, with affordable luxury brands increasingly capturing consumer attention, according to a recent report from the International Association of Department Stores (IADS).

This report highlights that contemporary and premium brands now comprise 31% of the women's fashion market, while high-street and mid-range brands account for 22%, and advanced contemporary brands make up 21%. Notably, at Tryano in Abu Dhabi, the price range of 400 to 800 euros has proven to be particularly successful, with strong sales recorded.

Market Trends and Shifts

El Palacio de Hierro in Mexico has responded to market pressures by reallocating its budget towards affordable luxury and entry-level price points, countering declines seen in the higher-end segments. The IADS noted that top-selling brands across various regions—including the U.S., Germany, Ukraine, and the Middle East—are consistently recognized, with names like Sandro, Maje, Max Mara, and Self-Portrait leading in the contemporary category, while Victoria Beckham, Ami Paris, and Jacquemus dominate the upper tiers.

Denim Dynamics and Online Growth

In a contrasting trend, the denim market presents a mixed picture; while it's experiencing a downturn in some regions, the U.S. is witnessing a surge, with customers accepting price hikes without hesitation. The IADS suggests that brands should adopt a diverse range of fits to encourage consumers to expand their wardrobes rather than simply replace old items. Moreover, the online sales channel for women’s fashion is expected to grow, making up about 22% of department store sales by 2025, up from 20% in the previous year.

Source: wwd.com