The luxury brand, looking for El Dorado as a Chinese growth stall, has turned its eye to the United States, home to the world’s richest and almost in danger elites.
However, navigating America’s gorgeous landscapes could prove to be more complicated than invading what was once considered “Terra Incognita” in China for European brands of fashion.
That’s because the current gorgeous crisis has surpassed China’s economic downturn, revealing a deeper crack in the industry’s core promises.
Luxury’s existential crisis
In a society where inequality is rising, materialism is increasingly questioned and luxury needs to be redefineed as younger generations prioritize value over status.
The relentless price rise over the years has irritated consumers, yes, but the real challenge runs deeper: what is the value of luxury today?
The next generation of buyers are looking for escapism, belonging, meaning and spirituality, rather than chasing status symbols. This change is accelerated in the United States, where political polarization has transformed consumption into a reflection of personal values and identity.
It is a transformation amplified by demographics.
By 2026, Millennials and Gen Z are leaning towards progressive ideals, accounting for 75% of luxury buyers.
The US will be a majority minority by 2045, with nearly 30% of Gen Z identified as LGBTQIA+ (a brand that is currently in the White House, but does not lose its diversity relevance and consumer loyalty). Only an honest and concrete commitment to values can reconcile the tension of luxury between the pure logic of distinction and the new consumer ideal.
Social Response
Consumption is inherently political in the US
A staggering 83% of millennials prefer brands that match their value. Celebrities are intervening when government policies on diversity, equity, inclusion and sustainability are rewind.
Kendrick Lamar’s Super Bowl Halftime Show, Samuel L. Jackson dramatized the American fragmentation as Uncle Sam and with the Red, White and Blue All-Black Dance Group. And when Selena Gomez shed tears in condemning the deportation of undocumented migrants, she sparked public debate.
In another setting, Gala’s 2025 homage to black dandyism reinforces fashion, especially as the industry still lacks diversity in creative leadership, which has become a platform for social discourse.
Consumers are also protesting against their wallets.
Tesla shares have fallen significantly, reflecting concerns about consumer backlash over Elon Musk’s efforts to bring chainsaws to the federal government with the support of President Donald Trump. Stickers like “just a Tesla driver, not a fascist supporter” emphasize how quickly luxury brands will no longer be supported.
Once a symbol of innovation, Tesla is now facing protest and destruction, driven by Musk’s divisive rhetoric.
The tranquility of a gorgeous world
While some big corporations and billionaires are trying to build relationships with the Trump world, LVM H Moët Hennessy Louis Vuitton Titan Bernard Arnault attended the inauguration ceremony.
This includes issues that the industry has passionately addressed in the past, such as diversity, equity and inclusion.
Meanwhile, beauty retailers such as Ulta Beauty, Sephora, Sally Beauty and Elf have reaffirmed their commitment.
Hispanic consumers are currently driving 17% of their beauty spending, while Black Americans account for 12.5%, proving that diversity is not just a social issue, but a business necessity.
In this climate, iconic gestures are no longer sufficient.
Brands need to embed their values at the core of their identity. Leading by an Indian-American president, ELF boasts a leadership team of 75% women and 40% of people of color, making diversity essential to DNA.
Some brands are taking more daring steps.
Jaguar’s rebranding campaign, “Copy Nothing,” embraced inclusion, high fashion and queer aesthetics, infiltrating its conservative roots. Despite alienating some older consumers, the campaign has won 160 million YouTube views and successfully deployed Jaguar for the young and progressive market. Ethical boldness seems essential to reconnecting with young people.
About the moral promotion that requires luxury
Beyond business strategies, embracing diversity and inclusion can rekindle creativity and reconstruct the cultural relevance of luxury.
Pharrell Williams’ leadership at Louis Vuitton represents this evolution. His fusion of Americana, black culture, Native American influences and Japanese underground style offers a fresh, hybridized perspective that will give young audiences a sense of luxury.
It’s more than a creative revival. It is a type of moral promotion that can restore the soul of luxury. The scope of ethical responsibility is expanding and currently encompasses data privacy, AI ethics, neurodiversity, mental health, and intergenerational equity.
For luxury brands, value must become an inherent, consistent part of their identity to become the core value of future luxury.
Today’s political turmoil is a wake-up call to ascertain that European luxury brands recognize cultural diversity as a core value, and a rare opportunity to be on the right side of history.
Lawrence Lim is the founder and managing director of branding between Cherry Blossoms, a cross-cultural branding agency based in Hong Kong and New York City.
