Fashion in a state of flux

The impact of coronavirus was felt sharply throughout the quarter, although consumer confidence started to return in the final months with the lifting of lockdown restrictions in some markets. In June calls for greater equality and racial justice swept the world following the death of George Floyd at the hands of US police officers. While some brands struggled to react and adapt to the changing landscape, Nike climbed two places to become the hottest brand in the world. It’s the first time since The Lyst Index began that a luxury fashion brand has not taken the top spot.

Nike was propelled by a 106% increase in demand for loungewear and activewear, as consumers sought comfortable clothes to wear at home, as well as attire for exercise and outdoor activities. A series of powerful earned and owned brand moments boosted the brand throughout the quarter, at a time when some luxury fashion brands struggled to generate as many impressions as usual with events such as The Met Gala and men’s fashion week cancelled. In a video liked over 5 million times on Instagram, Nike twisted its famous slogan to ‘Don’t Do It’ to promote its anti-racism message.

The success of Nike in The Lyst Index also reflects the way coronavirus is resetting shopping patterns and habits, and accelerating the shift towards digital commerce. Although the firm reported a revenue hit from shuttering bricks-and-mortar stores and shipping fewer products to wholesalers, its strong commitment to digital proves the tide is turning. Nike had previously announced it intended to reach 30% digital sales by 2023, but having already reached that milestone this year, the firm has set a new target of 50% digital sales in the near future. The rapid shift to online is not exclusive to sportswear and athleisure: the consultancy Bain & Company published a report in May predicting that online sales will represent 30% of the luxury market by 2025.

Powerful brands with a distinctive aesthetic and philosophy continue to resonate well with shoppers, and those with a strong social media presence and online community did well throughout the quarter. Jacquemus continues its ascent, rising four places to become the 11th hottest brand in the world, having seen a 61% increase in traffic on Lyst and 20% growth in Instagram followers since the previous quarter. In April the brand generated buzz for a campaign featuring model Bella Hadid photographed via the FaceTime video calling app, and in May Instagram posts featuring designer Simon Porte Jacquemus’ grandmother went viral.

Off-White remains high in 2nd position, despite having slipped from the top spot after three successive quarters there, while Balmain re-enters The Lyst Index hottest brands ranking having risen six places. Both of these brands, along with newcomer Fear of God, saw an increase in social impressions at a time when some well-established luxury names were flat on this metric or declined. California-based Fear of God makes its first appearance in the 20 hottest brands list, having risen nine places since the previous ranking.

So, what comes next? Within the industry, there have been various proposals to rethink the fashion calendar, as well as production and retailing practices, but widespread consensus is yet to be reached. Gucci and Saint Laurent have committed to changing how and when they show their collections, but other well-established brands have signalled a desire to stay close to the existing model. The dust is yet to settle on the events of 2020 so far, and the long-lasting consequences remain unclear. Amidst the uncertainty there are positive signals that powerful brands still resonate with consumers, and fresh opportunities may lie ahead to forge a more inclusive and sustainable fashion industry.