And can conscious brands harness the shift?

Recent conversations and interactions with mainstream media suggest signs and symptoms of a significant shift in shopping sentiment.

Fashion and beauty media outlets such as the Business of Fashion, Vogue Business and others have been producing articles about how recent global shifts in economics, consumer values, and human psychology could be potentially paving the way for a more conscious and intentional manner of spending and curating a lifestyle that helps people sleep a bit easier at night.

But is the size and scope of what we may be reading and hearing about really as dramatic as it seems, or is it perhaps more of a media sensationalist attempt to “greenwash” public perception and send audiences the emotionally pleasing message we may be looking for?

The Facts.

Recent data from early 2025 indicates that luxury fashion brands in the US are experiencing a decline in consumer interest in their products. After a strong year in 2024, new data from YouGov BrandIndex shows that consumer interest in top luxury names like Louis Vuitton, Gucci, and Dior has dropped noticeably this year (~10.1% to ~7.6% between early 2024 and early 2025 — a ~25% drop).

Although the decline isn’t overly staggering, it does reflect where people’s priorities may now lie. According to an article by The Fashion Network, Gen Z and millennials are under pressure from the rising cost of living, prompting them to rethink how and where they spend their disposable income. They are prioritizing quality and sustainability in both the literal sense and in the context of long-term financial health.

For these consumers, “luxury goes beyond the product – it also means a buying experience that is seamless and secure”, coining a new term called “accessible luxury”.

“Aspirational buyers” also known as those who previously purchased entry-level luxury (think brands such as Coach, Michael Kors, Kate Spade, or smaller items from Gucci or Prada with a safer price tag), or people who used luxury as a tool for upward social mobility, are also taking a step back from their old habits due to economic headwinds and a change in personal values.

Ethical concerns about the processes and practices behind the scenes at some of everyone’s most top-of-mind fashion and beauty brands are also a large part of the equation. Consumers are interested in the HOW of the production of high-end items and not simply the WHAT.

For example, animal testing, the treatment of employees, and disposal practices are some of the concerns crossing people’s minds before they qualify a pricey purchase. A heightened sensitivity for the human element of the luxury market is top of mind for many.

Another refreshing cause for the change is an evolving meaning of “status and prestige” for Gen Z. In addition to financial sustainability, authenticity, craftsmanship, and meaningfulness are recurring shopping themes for the younger generation.

The Future.

So what does this mean for the near and distant future of the luxury market, and what positive changes can we both expect and contribute to?

Research suggests that alternative consumption business models, such as the resale market, renting over purchasing, investing in vintage and/or second-hand items, and “quiet luxury,” are increasingly appealing. Quirt luxury refers to a mindset that represents elegance, timelessness and quality rather than blatant brand names and recognizable logos.

What Isn’t Changing?

For what it’s worth and for those who are curious, not all aspects of high-end luxury are affected and appear to be showing resilience to the cultural change.

ULTRA high-end luxury, also known as “trophy luxury,” reserved for the very wealthy, is less sensitive to broader economic shocks. Collector’s items and items with high resale value reflect the same.

Additionally, in geographic locations where wealth building is rapidly increasing (The Middle East, parts of Asia), luxury is still viewed as aspirational and valued as an integral part of the overall cultural fabric of the region.

Brands with existing strong and credible sustainability practices and that understand heritage reportedly can withstand the change.

How Conscious Brands Can Harness This Shift?

On to my favourite part of this story – How can conscious fashion and sustainable brands leverage this change and encourage consumers to perceive their brand narratives as a worthy replacement for the luxury ones?

Creating new ideas around what is considered worthy and a luxurious way of living could be a start. Reframing luxury as social and environmental responsibility, educating consumers about the true and direct results of their purchases using powerful storytelling, and positioning consciousness as the new standard of sophistication and cultural currency could also be effective ways to change the course.

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Thank you for taking the time to read this article. I hope what you have read has somehow educated, informed, or inspired you.

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