A boot snaps, forcing its model to stumble on the runway. A scrap of fabric peels from the next model's torsoThe upper part of the human body. and she rushes to cover herself up. Chaos ensues: a sunglass lens goes flying, trouser legs are ripped off, shirt sleeves crumble to the ground.

It may sound like every designer's worst nightmare. But it was Beate Karlsson's biggest dream. The founder of fashion company AVAVAV planned the Fall/Winter collection, entitled "Fake It Till You Break It", as a statement against "the superficialityA lack of thoroughness, depth of character, or serious thought. of fashion."

In her Spring/Summer fashion show, Karlsson encouraged her models to trip up as foolishly as possible on the runway. She described it as "all about keeping up a fake projectionThe presentation of an image on a surface. of wealth and the personal failure of losing face when this illusion crashes."¹

It may seem counterintuitiveContrary to intuition or to common-sense. for a designer to be so demeaningCritical, insulting to one's dignity. of her own industry. The world of fashion is famously inaccessibleUnable to be reached or entered., painting a portrait of self-important, unattainableNot able to be reached or achieved. wealth. It is rare for its participants to acknowledge its more absurd elements.

The luxury sector is booming. A whopping 95% of luxury brands saw their profits growing neatly in 2022. And since profit margins are exceptionally high across the luxury industry, it is an exceptional time to be a producer.²

The average price of luxury items has spiked by 25% in the last few years.³ For some, it is a sign of the industry's increasing obsolescenceThe process of becoming outdated and no longer used.. We are facing a cost of living crisis, rampantSpreading quickly. inflation and deep-rooted economic uncertainty. How can luxury fashion maintain such a high price tag?

Luxury sales are resilient for two reasons. The first is psychological: since designer items are about status, not about cost, when inflation pushes prices up it largely does not affect sales. In fact, it may even make the items more appealing, since a higher price corresponds with a higher status.

The second is economic: luxury consumers are less likely to be affected by broader trends in the economy, and therefore their spending habits do not tend to depend on the economic climate.

And its high cost is not only financial. At COP28 this week, leading fashion activism movement Fashion Revolution has called for radical change in the global fashion industry, highlighting its deep environmental impact and "deep social inequalities."⁴

Despite its critics, some say that luxury is increasing in relevance. Researchers project that Gen Z are making their first luxury purchases earlier than millennials did. Millennials and younger generations will make up 80% of spending in the luxury industry by 2030.

Others say we are increasingly aware of luxury's pitfalls. "We are now entering a new era of conscious consumerismSociety's obsession with acquiring consumer goods. where brands need to cater to both our higher and essential human needs," says one expert.⁵ "It's less about conspicuous consumptionThe purchase of goods or services for the specific purpose of displaying one's wealth. and more about capitalismA form of economy characterised by private property and competition between companies. with a conscience."

Besides, there is no longer a dichotomyThe difference between two completely opposite things. between fast fashion and luxury brands. Statistics show a recent boom in sustainable fashion and the second-hand market, which command an increasingly impressive proportion of consumer spending.⁶

Yes: In such a trying economic climate, luxury is always going to seem ridiculous. Spending lots of money on clothing which is hardly better quality than average merely for its exclusivity is inherently absurd.

No: Luxury fashion is growing in popularity and clearly has immense appeal to its younger audience. If anyone looks ridiculous, it is its critics.

Or... Creative designers like Beate Karlsson show us that fashion has not lost its relevance. In fact, it is capable of making very powerful statements.