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In recent years, the luxury market appeared immune to economic turbulence. Now, slowing sales at some of the world’s leading maisons and changing consumer behaviour have raised an inevitable question:
Is luxury really in crisis?
The answer is more complex than it seems.
After years of rapid growth, the sector has entered a period of more moderate expansion.
Bain & Company projects that the global personal luxury goods market will continue to grow in 2026, albeit at a slower pace than that seen in the years following the pandemic. Rather than signalling a crisis, the current moment points to a more selective market.
Not every brand is experiencing the same reality.
Gucci continues to face challenges in regaining its growth momentum, while Hermès has maintained strong performance thanks to its strategy of exclusivity and limited production.
Richemont continues to benefit from robust demand for jewellery, while groups such as Prada and Chaneldemonstrate that creativity, brand identity and cultural relevance remain powerful drivers of growth.
At the same time, consumers have changed.
The Chinese market has lost momentum, customers have become more discerning, and categories such as beauty, hospitality and experiences have gained ground over traditional fashion goods.
The desire for luxury remains. What has changed is the way people choose to consume it.
Perhaps the real crisis is not luxury itself, but a business model that, for years, assumed that raising prices alone would be enough to sustain desirability.
Today, consumers are looking for authenticity, creativity and experiences that justify the investment. Brands that have preserved their identity, exclusivity and perceived value continue to grow. Those that relied primarily on the strength of their logo are facing a far more challenging landscape.
Luxury has not disappeared.
It has simply become more demanding.
So, is the luxury market truly in crisis… or are we simply witnessing the end of an era in which price alone was enough to create desire?
