In a shift that is reshaping the global fashion landscape, luxury spending has begun to cool across key markets, with consumers increasingly prioritizing value, durability and long-term investment over trend-driven purchases. Analysts report a noticeable slowdown in high-ticket sales across the U.S., Europe and parts of East Asia, signaling the end of the post-pandemic luxury boom.
The industry is now entering what economists call the “value-driven phase”—a period characterized by selective spending, brand scrutiny and rising demand for craftsmanship-focused products. Shoppers are still buying luxury, but they are buying less, and better.
Several factors contribute to the shift: inflation pressures, changing priorities among younger consumers, slower discretionary spending in China and the rise of premium resale platforms that offer luxury goods at competitive prices. As a result, brands are rethinking growth strategies, pricing models and product calendars.
A key change is the cooling demand for logo-heavy statement items. Instead, consumers are gravitating toward timeless staples—structured coats, tailored trousers, leather bags and seasonless footwear. “Quiet luxury,” though now mainstream, continues to influence purchasing behavior in both the aspirational and ultra-high-net-worth segments.
Resale platforms like The RealReal, Vestiaire Collective and GOAT have also gained momentum, with authenticated resale becoming a major disruptor. Gen Z in particular is leaning into resale not only for affordability but for sustainability, making circular consumption a lifestyle preference rather than a trend.
Luxury houses are responding by expanding repair programs, enhancing material quality and offering transparent sustainability reports. Several brands are also entering the certified pre-owned market directly, recognizing the revenue potential and customer loyalty benefits.
Investment in craftsmanship is rising as well. Brands are rediscovering artisanal production, limited-edition drops and heritage manufacturing to rebuild desirability in an increasingly cautious market. Some luxury labels are even reducing output to align with the “less but better” mindset.
In this evolving landscape, value-driven fashion isn’t just a consumer shift—it’s a new global economic reality. Luxury brands that adapt will redefine the next decade of fashion.