What: A new generation of mid-market American labels are thriving, as spending patterns change, by offering value-conscious products with a point of view.

Why is it important: While the pandemic widened the income gap, it also forced consumers to change the way they shop. Many wealthier buyers became happy to trade down for products with a sharp point of view. US companies like Jenni Kayne, Loeffler Randall and Clare Vivier are experiencing triple-digit sales growth, thanks to smart distribution and unique products.

The American “accessible luxury” market, once squeezed between fast fashion and the very high-end, is now on an upswing after years of decline. Some of the once-struggling leaders in the category including Coach and Michael Kors, used the pandemic to reset and focus on profitability and distinctive designs, rather than sales volume driven by discounts.

Brands are also taking advantage of consumer frustration with the rising costs of high-end luxury goods in some cases, up nearly 20 percent during the pandemic alone. This value-conscious mindset has presented an opportunity for lower-priced labels that are held in a higher regard than fast fashion.

However, lower prices alone aren’t enough. Accessible luxury labels have often taken styles from true luxury lines rather than designing new things. History shows that the most successful, long-lasting brands are more successful with original creations, from Coach’s Bonnie Cashin-designed handbags to Tory Burch’s Reva flats.

Many of today’s most promising mid-priced labels are diminutive in size compared to the market leaders, although some believe they can reach that level of mass appeal.

The return of accessible luxury