Luxury Is Losing It’s Luster.
Luxury is entering a more fragile season. For much of the last decade, the category seemed unstoppable. Rising wealth in emerging markets, post-pandemic revenge spending, and a global appetite for prestige pushed sales to record levels. Now, the market is slowing under the weight of new realities.
Photo: GQ
Economic headwinds are hitting hard. Inflation, weaker consumer confidence, and uneven growth seem to have cooled spending. Consumers are getting tired of price increases. Many brands have continued to push costs upward, assuming consumers would absorb them, but younger buyers especially, are questioning whether the value matches the number on the tag. Cultural shifts matter just as much. Gen Z and younger millennials seem less impressed by heritage alone. They want brands that feel authentic, sustainable, and creatively relevant. And with luxury’s expansion into more accessible lines and global storefronts, exclusivity has diminished. When everyone can get a piece of the pie, the aura changes.
Where Brands Are Standing Out, and Where They’re Stuck
Some luxury houses are adjusting well. Prada has held up through the slowdown, growing revenue by staying disciplined with expansion and emphasizing craftsmanship while still keeping an eye on modern design. Loewe is another brand that has been thriving, thanks largely to Jonathan Anderson’s creative direction. It has managed to balance tradition with playful experimentation, creating products and campaigns that speak to younger consumers without abandoning refinement.
Loro Piana, known for its “quiet luxury” positioning, has also been resilient. Its focus on timelessness, high-quality materials, and understated design resonates with buyers who want longevity and subtle distinction. However, their lack of transparency and inappropriate manufacturing practices recently, may cost them a high price.
Photo: GQ
Brunello Cucinelli has leaned into the same restrained aesthetic and continues to post double-digit growth. These brands show that in a market flooded with hype and logos, timeless quality paired with clear identity can be a strong hedge.
Others are having a harder time. Burberry has been restructuring, cutting costs, and trying to restore clarity to its brand image. But profits are falling, and the brand risks being seen as caught between its iconic heritage and a struggle to stay contemporary. Ferragamo is also in the middle of a painful turnaround. Revenue is dropping, leadership is shifting, and the company feels squeezed between being aspirational and fully premium.
Gucci, under Kering, has faced inconsistent results as it tries to reboot creatively. A few years of trend-driven growth left it overexposed, and reconnecting with both Gen Z and loyal longtime customers has proven difficult.
On a different note, Dries Van Noten represents a brand that has stayed true to its creative roots without overextending. The Belgian label has always been known for artistry and individuality rather than mainstream appeal. That authenticity gives it credibility with a core audience, though its challenge is scale—remaining financially healthy while staying committed to its ethos in a market that rewards rapid growth and global visibility.
The landscape isn’t only defined by European houses. In China, newer labels like Uma Wang and Shushu/Tong are gaining momentum by leaning into cultural specificity and digital fluency. They’re speaking to domestic audiences in a way Western brands sometimes miss. Their challenge lies in maintaining quality as they scale and earning trust beyond their home market.
Diving Deeper
Loro Piana
Loro Piana is a strong example of a luxury brand that is leaning into its strengths—heritage, craftsmanship, quiet luxury—and reaping rewards, while also facing serious challenges. In 2024 it broke past €1.5 billion in revenue for the first time, with double-digit increases in both revenue and profitability. EBITDA more than doubled year over year, as did operating profit and net income. Fashionbi
Their campaigns reinforce the message: Fall/Winter 2025-26 was photographed by Mario Sorrenti at Villa Santo Sospir (France), historically associated with Jean Cocteau. The imagery uses light, architecture, elegance, and a sense of calm to convey value, refinement, and tradition rather than flash. Women’s Wear Daily+2The Impression+2 In their Resort 2025/26 collection, they also leaned into “refined spontaneity,” warm tones, relaxed silhouettes, and locations that evoke comfort, heritage, and continuity. Anne of Carversville+1
On the flip side, Loro Piana was put under judicial administration in Italy for a year over labor exploitation alleged in part of its supply chain. This most certainly undermines trust, and in this era, especially, ethical lapses cost more than just reputation, they threaten legitimacy. Reuters
So Loro Piana’s learning points are: invest in story and visual narrative and craft, ensure their back-of-house (suppliers, labor, ethics) match the front-of-house message, keep expanding digitally and geographically, but watch the risk of values drift.
Dries Van Noten
Dries Van Noten has always operated a bit outside the typical luxury mold. The brand is known for intelligent prints, layered texture, creativity, less about logos, more about mood. The Business of Fashion+1 The recent change of creative director (Julian Klausner) is being handled delicately. He’s been inside the house for years, shares its values, so the handover feels more continuity than disruptive change. Vogue Scandinavia+1
Their 2024-25 campaigns and revenue under Puig showed strong momentum; they delivered growth, and the niche luxury segment (which includes Van Noten) is seeing increasing strength. Anne of Carversville Creative integrity is a brand asset here. Unlike others chasing mass appeal or overexposure, Van Noten is staying coherent. The prints, the craftsmanship, the way collections are made, showrooms, etc., align with what their core audience expects.
Risks for Van Noten, scale is constrained. It’s harder to get into more stores, maintain margins, stay visible without diluting identity. Also, leadership transitions (even smooth ones) are moments of vulnerability. Buyers and critics both watch closely. Van Noten seems aware of this.
Loewe
Loewe is fascinating right now. Under Jonathan Anderson (and now transitioning to new creative leadership), it has been pushing visual, artistic boundaries while keeping its leather-goods pedigree solid. The “quiet luxury” of its craftsmanship is matched by vibrant campaigns, colour experiments, unusual settings, and sometimes unexpected casts. For example, the Spring 2026 teaser campaign with vibrant colours and high-contrast imagery in their recent Tease & Story campaigns online. Fashionista+3FashionNetwork+3Women’s Wear Daily+3
Loewe has also leaned into art references architecture, and artisanship in their visuals. The upcoming creative leadership shift (Proenza Schouler duo) makes this a moment of tension. Can they keep that balance between innovation and coherence?
What Luxury Brands Are Learning
Looking across the sector, a few lessons are clear. Consumers now expect value beyond price. Craftsmanship, sustainability, and a sense of cultural or personal relevance must be evident, not implied. Authenticity matters more than flash; brands leaning too heavily on logos or archives without a strong story are losing traction.
Luxury buyers are also seeking experiences, not just objects. The new status isn’t only about what you wear or own, but the relationships and moments tied to a brand. Those who invest in immersive retail, curated drops, or community-driven events are finding stronger loyalty. Flexibility is another factor. Culture and aesthetics move quickly, and brands bound by old processes are often too slow to respond.
The companies that are thriving are selective about growth. They’re trimming excess lines, controlling costs, and staying disciplined with expansion. They’re also balancing their audience—speaking to Gen Z without dismissing the older buyers who still carry significant purchasing power. And at the base of it all, sustainability and ethics are no longer optional. Transparency in sourcing, labor, and environmental impact are now baseline expectations.
The strongest luxury brands today are those that revisit the essence of what they once promised—quality, meaning, exclusivity—while layering on what the modern consumer demands. They prove that even in a shifting market, relevance comes from clarity and authenticity, not just history or price.
For lifestyle brands outside the luxury sphere, the takeaways are just as useful. Stand for something clear. Deliver excellence not just in the product, but in the way people discover and experience your brand. Build relationships and culture, not just transactions. Those who get that balance right will not only weather uncertain markets but create lasting desirability.
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