Forecasted to grow at 5.4 per cent CAGR till 2025, global luxury fashion industry is becoming increasingly multifaceted with its infusion of streetwear and growing investments in the metaverse. As per an Edited report, streetwear-inspired global luxury market is forecasted to grow to $382.6 billion in 2025. The sweatpants category will grow by 59 per cent, sweatshirts by 26 per cent and T-shirts by 14 per cent.

Investments in traditional workwear have been increasing since the onset of the pandemic. Luxury brands are also witnessing a 130 per cent Y-o-Y increase in demand for extended sizes. Currently, these sizes are available in only 7 per cent luxury apparel sold online. They need to be extended to offline retailers also. With animal hides no longer viewed as a status symbol, investments in animal furs have declined 27 per cent and exotic skins by 42 per cent Y-o-Y. The industry is increasingly opting for animal-free luxury alternatives like vegan leather whose demand has soared 20 per cent year-on-year

Quintessential streetwear items like hoodies, sweatpants, sneakers and T-shirts staples continue to form a part of luxury brands' collections. However, luxury brands have shifted away from bumbags to crossbody bags or duffels.

Demand for workwear grows

Streetwear brands like Fear of God and Stone Island continue to invest in third-party luxury sites. Both these brands have invested to acquire 680 per cent and 81 per cent stakes in these sites.

Reminiscent of pre-pandemic times, workwear essentials have grown on par with pre-pandemic levels in the luxury market. New shirt arrivals have increased 16 per cent and blazers 2 per cent Y-o-Y. However, demand for wide-leg pants has dropped by 31 per cent Y-o-Y.

Luxury collections to brighten up with new shades

Luxury assortments are expected to become brighter with the infusion of new shades. In 2021, the percentage of color pink in women’s wardrobes declined to 37 per cent from 43 per cent earlier. On the other hand, the percentage of color green surged from 6 per cent to 7 per cent, yellow from 3 per cent to 4 per cent and purple from 2 per cent to 4 per cent.

Demand for extended sizes grow

Luxury brands typically design garments ranging upto size XL for women and a 2XL for men. However, few retailers are extending their size offerings to serve growing demand from diverse body types. Sizes are on offer range from XL for women and 2XL for men.

Decline in fur demand

Investments in vegan leathers grew 20 per cent Y-o-Y. Demand for faux alternatives and teddy fixtures are also growing 78 per cent Y-o-Y while demand for conscious wool is rising 67 per cent. On the other hand, the value of fur and exotic skins has dropped though demand for wool continues to thrive despite 9 per cent Y-o-Y drop in value.

Pushing boundaries with metaverse

Metaverse is helping luxury brands push new boundaries to increase sales. Around 42 per cent of brands adopted metaverse and NFTs within the past year on their home pages. Designers are also coming on board with creation of new digital wearables and tokens. Gucci has emerged as a frontrunner by buying a plot of virtual land on The Sandbox and partnering 10KTF among its many metaverse projects. However, to increase their presence in metaverse retailers need to increase collaborations with experts.