Luxury Brands Are Slowing Down, What’s Really Going On In 2025?

The group reported a 9% drop in sales for its fashion and leather goods division in the second quarter worse than expected. The main culprit? Fewer tourists shopping, which has hit brands like Louis Vuitton and Christian Dior hard.

Price Hikes and Changing Tastes Force Luxury Buyers to Get Selective

Why the dip? Prices have been climbing steadily. Luxury handbags and accessories got ridiculously expensive, especially during the pandemic when many consumers went on a luxury shopping binge. Now that spree is over, and buyers are getting more selective, spending only where they see real value. The are choosing fashion over luxury.

Luxury Faces Its Biggest Challenge Since 2008 as Consumers Shift Priorities

2024 turned out to be the worst year for luxury sales since the 2008 financial crisis and that’s saying something, considering there was no recession this time. Interestingly, the biggest luxury brands aren’t losing market share to smaller, trendy brands. Instead, consumers are just changing how and what they want to spend on.

With Chanel, Gucci, Prada, and others feeling the pinch, the luxury industry faces a clear choice: adapt to new consumer tastes or risk falling behind. 2025 might be the year luxury has to rethink its game.

Also Read: Top Luxury Fashion Looks You Must See In 2025: In Pics