This article is part of The Luxury Slowdown Survival Guide, a collection of articles that examines the recent industry downturn and the strategies brands may employ to come out of it unscathed.
Overcoming the luxury slowdown won’t just be a case of waiting the market out: brands need to listen to consumers and adapt accordingly.
The luxury industry lost some 50 million customers in 2024, according to Bain. Inflation and the rising cost of living have forced some to cut back. Meanwhile, consumer confidence is also suffering — particularly in China, which has hit many brands.
To understand how spending habits are changing and what brands could do to better reach luxury customers, we surveyed almost 1,000 Vogue and GQ readers in the US and the UK and Vogue Business readers globally. The key takeaway is that consumers are aware of price increases and are looking for more value. Those under 35 are shopping more for luxury than those over 35, but they’re shopping through alternative channels like resale or sample sales. Most concerningly for brands, sentiment towards luxury brands is relatively negative; consumers said brands could improve their appeal by providing better value for money, more ethical practices and improved product quality.
We dive into the exclusive data below.
Consumers have grown more cost-conscious
The vast majority (77 per cent) of respondents agree that luxury fashion items cost more than they did a year ago. This has led to shifts in their shopping behaviour: 37 per cent agree that they shop less for luxury fashion than they did a year prior, and two-thirds said they are more likely to wait for discounts or sales to purchase luxury fashion items than before.
Among those who have reduced their luxury spending, the primary reasons are that luxury items no longer offer good value to justify the price (41 per cent) and that they prefer to spend their money on other things (41 per cent).
Many customers who said their perception of luxury brands has declined in the past year cited quality as a concern. “Some luxury brands have increased their prices significantly but the quality has reduced. Luxury no longer means long-lasting quality product,” said one respondent.
Because of the perceived lack of value across luxury today, consumers are seeking alternatives from contemporary brands or vintage resellers. “The value of goods against the price [has caused my perception of luxury brands to decline], and the rise of new, silent luxury brands that are really competitively priced and good quality,” said one respondent. “Secondhand products are, paradoxically, of better quality than the recent products of the same brand,” one respondent noted.
Those who still wish to buy into luxury may opt for a smaller purchase, like a beauty product, home goods or sunglasses. Fragrance, makeup and skincare were the most popular purchases across the board, with home goods and skincare more popular among consumers who have slowed down their luxury spending in the past year.
The small luxury category is proving relatively stable, with 41 per cent of respondents saying their small luxury spending has remained the same over the past year, while 31 per cent have increased their purchases. This skews higher for under 35s — 44 per cent of whom have increased their spending on small luxuries, compared with 23 per cent of over 35s — and for those earning less than 100,000 per year in local currency (USD, EUR or GBP) — 37 per cent of whom have increased their spending, compared with 25 per cent of those earning over 100,000 per year. Over half (52 per cent) of respondents who have increased their small luxury spending put this down to being an easier way to treat themselves.
How young consumers are shopping
Price increases haven’t turned young customers off luxury — quite the opposite, in fact. The appetite for luxury among young consumers is clear: our research shows under 35s are more likely to say their spending on luxury fashion has increased in the past year compared with over 35s (33 per cent compared with 21 per cent, respectively).
However, young consumers are primarily shopping for luxury through alternative methods. In the past year, young consumers are more likely to have shopped at sample or archive sales (28 per cent vs 11 per cent of over 35s). Over half (52 per cent) of under 35s have purchased luxury fashion items or accessories secondhand in the past year (compared with 40 per cent of over 35s) — and secondhand shopping has also increased for this demographic (40 per cent have increased their secondhand spend vs 25 per cent of over 35s). Consumers earning less than 100,000 per year in local currency, regardless of age, are more likely to have increased their secondhand purchases (35 per cent vs 26 per cent of those earning over 100,000 per year).
Across all age groups, 46 per cent agreed they are more interested in purchasing secondhand luxury fashion than they were a year ago. Among those who have increased their secondhand shopping, the primary reason cited was affordability (67 per cent), followed by sustainability (52 per cent) and because it’s rarer or more exclusive (52 per cent).
Under 35s are also more likely to shop for luxury while travelling abroad than they were a year ago (43 per cent vs 32 per cent of over 35s), which indicates young consumers are drawn to the experience of shopping luxury and potentially the lower prices thanks to tax write-offs.
Under 35s are more likely to seek a sense of identity or belonging by purchasing a luxury item (25 per cent vs 9 per cent of over 35s). Under 35s are also more drawn to design and creativity as a reason for purchasing luxury (81 per cent vs 69 per cent of over 35s). In some instances, the perception that creativity has declined has negatively impacted respondents’ feelings towards luxury brands. “Everything is looking the same. There is absolutely no uniqueness in the brands. You can’t tell the difference from one brand to another if you ignore the logo. Brands are only supporting products that could be ‘commercial’ rather than trialing newness,” said one respondent.
How high-earning customers are shopping
When it comes to categories, there are some differences in where higher-earning consumers are spending their money. Respondents earning over 100,000 per year in local currency are more likely to have purchased luxury shoes in the past year (72 per cent vs 60 per cent of those earning under 100,000) and clothing or apparel (76 per cent vs 68 per cent per cent of those earning under 100,000). Handbag purchases are more evenly distributed across income levels, with 60 per cent of those earning over 100,000 having spent on the accessory in the last year, compared with 56 per cent of those earning below. When asked which brands respondents purchased from in the past year, Gucci, Hermès, Louis Vuitton and Coach were mentioned the most across groups.
Across consumer groups, the most popular ways of shopping for luxury fashion and accessories are online from a multi-brand retailer (51 per cent), in-person from a brand’s own store (51 per cent) and online directly from the brand (49 per cent). Those earning over 100,000 are slightly more likely to shop from an online multi-brand retailer or department store (57 per cent vs 49 per cent of those earning under 100,000).
For all consumers, the most influential factors for purchasing luxury fashion or accessories are: quality (80 per cent) and the designs or creativity (74 per cent). The top two factors are maintained across all groups, but luxury consumers who have not slowed their spending in the past year were more likely to select brand reputation, exclusivity and customer service than those who have tightened their belts.
How to win customers back
Roughly half (48 per cent) of respondents believe that luxury brands are ineffective at appealing to luxury consumers today.
A year or two ago, many consumers assumed luxury brands were more ethical than their fast fashion counterparts. Now, questions are beginning to rise. Many respondents who said their feelings towards luxury brands have become more negative in the past year, cited recent reports exposing poor working conditions in luxury’s supply chains. “I have been reading more exposés regarding some of the practices of luxury brands with regards to using cheaper labour and not adequately paying those who source materials. I feel that luxury brands are cutting corners,” said one respondent. “If even the highest luxury brands aren’t keeping to their own ethical standards, then how can they be trusted, and why would I agree to spend money with them?” stated another.
When asked what luxury brands could be doing to better appeal to consumers, over half of respondents suggested that brands should decrease prices (52 per cent), while a third suggested for brands to improve sustainability/ethics (34 per cent) and product quality (33 per cent).
The answers skew slightly for different consumer groups: under 35s are more likely to seek improved product quality (45 per cent vs 27 per cent of over 35s), more sustainability (39 per cent vs 31 per cent of over 35s), newer creative ideas (23 per cent vs 17 per cent of over 35s) and a better sense of community or brand experience (27 per cent vs 14 per cent of over 35s). Female consumers are also more likely to be interested in sustainability (39 per cent vs 21 per cent of male respondents). Respondents based in the US were more likely to suggest that brands should lower prices than those in the UK (58 per cent compared with 49 per cent, respectively).
Across the board, the findings from Vogue Business’s luxury consumer survey show that brands have the opportunity to expand their audience by exploring more attractive pricing strategies and enhancing the perception of value, through improved quality and sustainability.
Methodology and demographics
Vogue Business conducted a 10-minute quantitative online survey, which was shared with Vogue and GQ readers in the UK and the US and Vogue Business readers globally. This research was conducted by an internal Condé Nast custom research team between 4 November and 9 December 2024. Statistical comparisons between groups were used at a 95 per cent confidence interval.
In order to take this survey, respondents were required to be aged 16 or over. In total, 921 respondents were surveyed, with 580 typically purchasing from luxury brands. Among respondents, 34 per cent are under 35 and 63 per cent are over 35. Female respondents make up 67 per cent of the group, while male respondents make up 31 per cent and non-binary respondents represent 1 per cent, with 1 per cent preferring not to answer. Around half (51 per cent) of respondents are based in the US, with 31 per cent based in the UK and the remaining 18 per cent from the rest of the world. Around half (52 per cent) of respondents are aspirational customers, defined as those with an annual income of less than 100,000 in local currency (USD, EUR or GBP), while 26 per cent earn over 100,000 a year and the remaining 22 per cent prefer not to answer.
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