Innovation Fuels Top Brands
With the luxury sector continuing to lag, it’s increasingly obvious that this slowdown in many ways is a problem of luxury brands own making. Sure, there are geopolitical uncertainties, the economic slowdown in China and inflation in Europe and the US., but the homogeneity in design across brands and those infamous price increases have left consumers feeling that pricing doesn’t align with the decline in creativity and quality. Basically, brands have become lazy.
While some industry analysts believe that this decline in demand has led to the merry-go-round of designers leaving and joining major houses – a strategy brands employ to excite customers – the truth is the issue is more structural. A fresh designer or creative director can usher in new products, a new logo, new ad campaigns, and even new boutiques, but if the product refresh, visual imagery and store design does not align with a brand’s values and DNA, it won’t make sense to consumers. Which is why two brands - Hermès and Prada - are particularly intriguing, because they are outperforming their peers by leaning into product innovation that aligns with their identity.
Hermes boutique, Sydney, Australia. Photo courtesy of ArDanMe / Shutterstock.
Though everyone points to Hermès ’ Birkin and Kelly business, the truth is the brand isn’t dependent on one product category; its product offering is diversified across 16 categories, ranging from leather goods to interior décor (and look for more brands to enter the home design space as high-end beauty struggles and dupe culture thrives). Of course, Hermes updates many of its bag silhouettes when featured on the runway, like the new Spring 2025 Kelly Sellier with a substantial leather strap, but it also strives to explore new techniques and craftsmanship in its Ready-to-Wear collections. For example, Nadège Vanhée crafted a sporty two-toned zip-up dress in woven leather for Spring 2025. And no, it doesn’t look like Bottega Veneta’s woven leather.; the color and detailed, geometric pattern looks uniquely Hermès. The brand always stays true to producing luxury product relevant to its audience’s lifestyle with a focus on craftsmanship, innovative materials and technical know-how, all key product storytelling elements that provide talking points for sales associates when interacting with customers in store.
Prada boutique, Milan, Italy. Photo courtesy of Magiore Stock / Shutterstock.
Meanwhile Prada, as Forbes has pointed out, is experiencing “steady growth (that is) outpacing the market.” Designer Miuccia Prada, renowned for championing the ugly-pretty aesthetic, has consistently infused her collections with intellectual, political, and artistic themes. In 2020, she took the bold step of bringing on Raf Simons as co-creator, whose distinctive vision is shaped by influences like youth culture and electronic music. With Simons onboard, Prada has been updating and remixing its archival silhouettes, like the mid-length shift dress – a house favorite – which the duo embellished with punk-inspired silver metal rings for Spring 2025. By delivering innovative styling and fresh product narratives Prada is maintaining its relevance and reaching new fans, while keeping its core audience engaged.
“I do not believe that everything is solved by lowering prices or bringing products to the market at lower prices, but by increasing credibility.” - Prada Group CEO Andrea Guerra
So, will brands continue raising prices in pursuit of higher profits, or will they prioritize innovation and craftsmanship to deepen customer engagement? As Prada Group CEO Andrea Guerra stated in a recent interview with Moda 24, “If our consumer feels betrayed because they believe the value of the product does not reflect the price, I think it is the failure of our work. … However, I do not believe that everything is solved by lowering prices or bringing products to the market at lower prices, but by increasing credibility.” To remain credible and culturally relevant in today’s competitive marketplace, luxury brands must strengthen emotional connections with their clients, while investing in material and design innovation that aligns with their brand identity and deliver truly exceptional products.
