What Consumers Want From Luxury in 2025

This article is part of the Vogue Business Index: H1 2025, an bi-annual objective scorecard of the 60 top luxury fashion brands, based on revenue. Executive Members can read the full Vogue Business Index here.

After a difficult few years for luxury, consumer confidence seems to be finding its footing. Price increases, value discrepancies and unethical practices have weighed heavily on brands but the tide could be turning. On average, brands are seen in a more positive light than this time six months ago, purchase intent is on the up and consumers are becoming marginally less sensitive to price rises.

Meanwhile, in a period like no other, luxury’s stream of creative director shake-ups feels never-ending, as industry greats continue to change gears and carve out their places in today’s luxury field. And as luxury shoppers are changing, so are the brands seeking to appeal. Fashion houses are rewiring to respond to the traits of current — and future — consumers, with branding, communication and experience proving crucial in turnaround plans. So which markets are showing up as bright spots and what strategies are paying off?

Sentiment shuffles

In this chapter, we examine how consumers view the 60 luxury brands covered by the Vogue Business Index. Delving into perceptions of quality, storytelling and heritage, we unpack the purchase intent of consumers via a survey of 4,000+ Vogue and GQ readers across China, Japan, South Korea, the UK, France, the US, Italy, Germany, Spain, Brazil and the Middle East. Around 20 per cent of respondents represent the aspirational luxury consumer (spending a minimum of $500 on one item per year), while the remaining 80 per cent spend a minimum of $2,000 per year on luxury goods.

Since the Vogue Business H2 2024 Index, there has been limited change among the top five brands for consumer sentiment, with a slight shuffle in the order. Hermès rose a single position to second place, while Dior rose two positions to third place. Both brands have seen purchase intent increase in the past six months to respective averages of 7.3 and 7.7 out of 10, driven by improved consumer perception across brand values, innovative design and in-store experience. Meanwhile, Louis Vuitton and Gucci have dropped by two places and one place, respectively, now sitting in fourth and fifth position. LV and Gucci are seen to have less interesting brand stories than six months prior, with the latter considered less classic and timeless than in H2 2024.

For all 60 brands, average perception has risen from six months ago. Collectively, they are seen as a positive force for change in society (+5.5 per cent), offering good value for money (+5 per cent) and being iconic (+4.8 per cent).

Despite tumbling protifs, Ferragamo’s rebrand — led by former CEO Marco Gobbetti, and punctuated by the appointment of Maximilian Davis as creative director — is finally having an impact. The house is one of the highest risers across all three metrics for consumer perception: up 17.1 per cent for being a positive force for change in society, up 13.5 per cent for offering good value for money and up 10.1 per cent in terms of icon status. The brand has been spotlighting its artisans on social media, an approach strengthened by its supply chain programmes, which include a partnership with the Ethical Fashion Initiative to build a cotton dyeing factory in Burkina Faso, West Africa; once open, the facility will supply fully traceable yarns.

Elsewhere, Chloé rose 12.9 per cent for being an iconic brand (respondents were asked to rank each brand out of 10 based on the statement: “Is the most iconic brand”) and 12.2 per cent in offering good value for money. This is following Chemena Kamali’s return to the maison, this time as creative director, which saw its Autumn/Winter 2024 runway considered the second best performing show in H2 2024. A change in strategy at Ferragamo and a shift in creative direction at Chloé have translated to positive consumer perception. Despite ongoing struggles at the former, it seems patience and conviction are essential to gain the appreciation of today’s luxury shopper.

Price sensitivity begins to settle

The first quarter of 2025 hints at a return to consumer confidence. Average purchase intent across all 60 brands has increased by 4.2 per cent in the past six months, with Marc Jacobs (+9.5 per cent), Miu Miu (+8.8 per cent) and Maison Margiela (+8.3 per cent) each benefitting. This edition saw purchase intent decline for just six brands: Moschino, Chanel, Tod’s, Canada Goose, Acne Studios and Prada.

This time last year, 26 per cent of consumers were looking to switch to less expensive brands if the cost of luxury goods rose further; a number that has since dropped to 24 per cent. At the same time, likelihood to shop sales has also declined from 59 per cent to 56 per cent. Though marginal, this progress indicates a steady — if not robust — attitude to price fluctuations.

Italy resists price rises

Of the markets studied, Italy is the most sensitive to price fluctuations. Sixty-four per cent of the country’s luxury consumers will shop less for fashion if the prices of goods rise further, compared with 40 per cent globally, while 42 per cent will switch to buying less expensive products, versus 27 per cent globally. Close proximity to manufacturing likely leaves Italians unable to justify the hikes, coupled with concerns around markup and labour controversies at some of the major luxury houses. Out of all markets surveyed for the Vogue Business H1 2025 Index, securing a living wage for supply chain workers is most important to Italian consumers, at 83 per cent (versus 69 per cent globally).

Japan is much more resilient to pricing changes, with just 12 per cent and 18 per cent of consumers in the market switching to less expensive brands and less expensive products, respectively, if rises persist. Over the past few years, a weak yen has driven high-spending tourists to the market, seeing the region emerge as a luxury growth engine, as investment in local shopping destinations like premium hub Azabudai Hills (completed in 2023) indicate sustained appetite. Locals might be resilient to price increases, but Japanese purchasing power remains lower than the global average. Average purchase intent for all Index brands in Japan sits at 4.3 out of 10, compared with a global average of 5.6; Italy is in line with the global average, despite notable dissatisfaction.

Creative direction shakes up perception

Chanel has held the top spot in consumer sentiment for the past six editions of the Vogue Business Index. A brand almost synonymous with luxury, its feat can be credited to its widespread awareness. But opinions of Chanel have declined over the past five indexes, as it has come under fire for discrepancies between quality and price. As consumers increasingly consider the likes of longevity, cost per wear and resale value, price tags must align with the standards of craftsmanship shoppers are willing to commit to.

The cut and fit of its clothing is rated 7.74 out of 10, while the quality of its pieces is awarded 8.04 — down 4.1 per cent and 3.9 per cent, respectively, from the five years prior. While price increases at luxury brands are common practice to cover the rising costs of materials and labour, Chanel has perhaps garnered the most criticism for its uplifts. The price of the Classic 11.12 Chanel flap bag has risen 39.8 per cent since 2020, now retailing at $10,800. During the same period, opinions that the brand offers good value for money have declined 2 per cent, while its purchase intent has dropped 3.9 per cent.

Under Virginie Viard, who helmed the brand from 2019 to 2024, Chanel was considered to have more innovative design and an enduring modern style. As Matthieu Blazy takes the reins, it remains to be seen how perception will shift. But if his time at Bottega Veneta is anything to go by, the future is bright. Bottega Veneta has seen perceptions of its innovative design rise 13.2 per cent during the last five years, while positive perceptions of its cuts and fit have increased 3.7 per cent.

Gucci has seen shifts of its own. Under Alessandro Michele, Gucci was considered to have the most modern style of all Index brands, while continuously scoring high on its new and unique offerings; since the first Vogue Business Index, Gucci’s performance across these metrics has declined by 4.9 per cent, 6.5 per cent and 6 per cent, respectively. The maison’s creative transition from Michele to Sabato De Sarno in 2023 saw the brand lose some of the identity that the former had injected into the brand during his seven-year tenure.

As Gucci’s next creative lead, Demna will be tasked with reviving its sense of identity while reapplying his own design language to the storied Italian house and turn around revenues — profits slumped from a €10.5 billion peak in 2022 to €7.65 billion in 2024. “His creative power is exactly what Gucci needs,” said Kering chairman and CEO François-Henri Pinault at the time of appointment. But there have been some wins for the house as of late. Perception of quality has increased for the brand (+3.8 per cent), as well as the cuts and fit of the clothing (+5.3 per cent). Meanwhile, its in-store (+6.6 per cent) and digital experiences (+4.6 per cent) have prospered. For the new recruits at Gucci and Chanel, their challenges will differ: Gucci demands a clear point of view, while Chanel’s value-quality proposition is in need of a rethink.

Case study: Toryssaince in full swing

Tory Burch has risen nine spots in the consumer sentiment pillar since the Vogue Business H2 2024 Index to 35th place — a 17-place uplift from a low ranking of 52 in H2 2023. The past few years have seen operational changes, as well as an evolution of the label’s design principles. Tory Burch stepped down as brand CEO in 2019 to focus solely on the creative side of the business, ushering in a fresh period for the New York-born house (enter: the ‘Toryssaince’).

Net profits of Tory Burch’s UK arm climbed to £3.3 million for the year ended 31 December 2023, up from almost £342,000 a year prior. Recent hero items from the brand such as the Pierced mule and the Romy bag, spotted on celebrities from Michelle Williams to Suki Waterhouse, have likely contributed to the financial feat. A born-again It-girl appeal and clever marketing moves — including the kitting out of its SS25 front row in Pierced pumps — have brought Tory Burch further into the cultural fold.

Cult products are not the only attention driver, though. Recent Tory Burch runways have featured celebrity-studded front rows, including the likes of Amanda Seyfried, Jodie Turner-Smith and Martha Stewart, which saw the brand drive the highest engagement during AW25 New York Fashion Week.

The buzz has yet to translate to improved consumer perception, however, as the brand scores just 4.95 out of 10 in creating engaging content. Nonetheless, almost three-quarters of consumers surveyed (74 per cent) were aware of the Tory Burch brand, sitting just behind the Index average of 77 per cent.

Among this reset, the brand hasn’t abandoned the basics. Consumers are more impressed with the label’s cuts and fits, and customer service than they were six months ago, rising respectively by 5.5 per cent and 7.9 per cent. While purchase intent is up 8 per cent for H1 2025, maintaining these values will be key to enduring success.

Key takeaways:

• Perception and confidence are on the up. Consumer confidence finally seems to be rising, as purchase intent climbs and price sensitivity eases. Perceptions of quality and value are also showing glimmers of hope, with marginal improvement from six months ago.
• Creative directors alter perception. Wrestling with price rises and diluted brand DNA, consumer perceptions are heavily swayed by the creative changes at luxury houses. With newness on the horizon at Chanel and Gucci, the focus is on recent recruits to ensure value for money and solidify an aesthetic shoppers want to buy into.
• Rebranding takes time. Tory Burch is finally benefitting from the Toryssaince, which has seen the brand hone in on design and establish hero products. Elsewhere, rebrands at Ferragamo and Chloé are witnessing their own recognition in the eyes of consumers, the former of which has been an uphill climb.

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