The cape dominated on the catwalks, Salvatora Ferragamo, Chloe, Hussein Chalayan, Celine and YSL to name a few. You need only look at the high street versions, (e.g. Topshop) to know that this is going to be a BIG trend.
But the proof of a real trend is seeing if it transcends from the catwalk to the streets. Style street blogs are filled with fashionistas wearing the item mixing it with their own unique style.
For best results ditch the red riding hood look by sticking to neutrals such as the color of the season BEIGE. To be on trend this season wear shorts (if you want to be the ultimate fashionista try leather, not for the faith hearted) and long stockings and boots.