Consumers are losing interest in luxury goods

Politics and the luxury fashion industry may not necessarily seem to have much in common, but new research shows that just as many consumers have an affinity for traditional politics, , it turns out the same thing is happening in high fashion.

A new study finds that, like many politicians, brands are somewhat out of sync with what consumers want and how they think.

Who says that? In response to Bain’s statistic that the luxury goods industry will lose around 50 million customers in 2024, Vogue Business spoke to 1,000 readers of its own readers and sister publications Vogue and GQ in the UK and US.

And price increases appear to be a thorny issue, as consumers cite price reductions as the most important action to be taken.

Older consumers seem to be particularly averse to it. However, while people under 35 are more likely to buy luxury goods than older age groups, younger shoppers seek out luxury goods through channels such as resale and sample sales.

And the survey showed sentiment towards luxury brands was “relatively negative”, with consumers demanding better quality. The latter issue is particularly worrying given that one of the excuses for high prices is high quality.

Research shows that 77% of consumers feel prices are higher than just a year ago, 37% say they buy less luxury fashion, and two-thirds wait for discounts before buying. I replied that I had purchased it.

About 41% of people who are cutting back on luxury spending feel they are no longer getting good value.

Survey respondents who are concerned about quality also said they believe quality is declining even as prices are rising. Older items are assumed to be of better quality, which is one of the reasons second-hand items are more expensive.

The study also found that consumers are buying into the “lipstick effect,” meaning they are buying luxury items while also making smaller purchases, such as beauty products and sunglasses. In fact, 41% of respondents said their spending on small luxury items remained stable over the past year. And 31% have actually increased their spending here, especially people under 35 (about 44%).

One-third of younger consumers say their spending on luxury fashion has increased in the past year (compared to more than one-fifth of older consumers); is not purchased at list price.

Approximately 28% purchase at sample or archive sales, and an even higher number (52%) purchase second-hand. For those over 35, the percentages are just 11% and 40%, respectively.

However, 46% of all age groups are more interested in buying second-hand than this time last year, with affordability being the biggest reason.

The survey also revealed that people under 35 are more likely to buy luxury goods when traveling abroad. This is a cause for concern for Britain’s luxury goods industry, given that the VAT-free shopping benefit for visitors has been scrapped. It’s entirely possible that these US consumers prefer to buy their luxury goods in mainland Europe, which could mean that UK consumers are saving some of their cash to spend on mainland Europe instead of back home. It means having sex.

As mentioned earlier, ethical concerns are also being taken into account, and while consumers previously assumed that luxury goods were more ethically produced, they are now questioning that assumption. Many respondents said they had seen reports showing poor working conditions in the luxury goods supply chain, which they found disturbing.