It may seem that politics and the luxury fashion sector don’t necessarily have a lot in common but a new survey shows that just as we’re seeing many consumers falling out of love with traditional politics, the same is happening to luxe fashion.
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A new survey suggests that brands — like many politicians — are somewhat out of touch with what consumers want and what they think of them.
Who says so? Vogue Business spoke to 1,000 of its own readers as well as those of sister publications Vogue and GQ in the UK and US in response to Bain figures showing the luxury industry lost around 50 million customers in 2024.
And rising prices seem to be a bugbear with consumers citing price reductions as the top action to win them over.
Older consumers seem particularly turned off. But while those under 35 are shopping more for luxury than those above that age, those younger shoppers are seeking their luxury fix through channels like resale or sample sales.
And the survey showed sentiment towards luxury brands being “relatively negative” with calls from consumers for improved quality. That latter issue is particularly worrying given that one of the excuses for high prices is high quality.
The survey showed 77% of consumers noting high prices than just a year ago, with 37% saying it means they shop for luxury fashion less now, and two-thirds waiting for discounts before they buy.
Some 41% of those cutting their luxury spend feel they’re no longer getting good value.
And survey respondents who were concerned about quality said that they think quality has declined even as prices have risen. That’s one of the reasons for secondhand getting a boost as older items are seem as better quality.
The survey also found consumers buying into the ‘lipstick effect’ — that is, still buying luxury but making smaller purchases such as beauty items or sunglasses. In fact, 41% of respondents said their small-item luxury spend has been stable in the past year. And 31% have actually increased spending here, especially those under 35 (some 44%).
While a third of younger consumers say they’ve increased their luxury fashion spend in the past year (compared to just over a fifth of older consumers), as mentioned, they’re not buying at full price.
Some 28% have been buying at sample or archive sales and an even bigger 52% have bought secondhand. For the over-35s, the percentages are just 11% and 40%, respectively.
But 46% of all age groups are more interested in buying secondhand than they were this time last year, with affordability the top reason.
The survey also showed under-35s are more likely to shop for luxury when travelling abroad. That’s worrying for the UK luxury sector given the removal of the VAT-free shopping perk for visitors. Those US consumers could well prefer to buy their luxury goods in mainland Europe and it also means UK consumers may be saving some of their cash to spend there too, instead of at home.
As mentioned, ethical concerns also come into the equation and while previous years have seen consumers assuming that luxury goods are more ethically produced, they’re now questioning that assumption. Many respondents said they’d seen reports showing poor working conditions in the luxury supply chain and this is a turn-off.
German retail sales rose in 2024, but growth should be more modest this year due to the high level of uncertainty, according to retail association HDE.
Last year, retail sales rose 1.1% compared to the previous year in inflation-adjusted terms, official data showed on Friday. The HDE forecasts 0.5% growth in real terms this year.
“Consumption and the retail sector in Germany will not really gain momentum in 2025 either,” said HDE managing director Stefan Genth. “There is simply too much uncertainty,” he said. “Wars, high energy costs and overall economic stagnation are a toxic cocktail for consumption.”
In nominal terms, retail sales rose by 2.5% in 2024 and are expected to grow by 2.0% in 2025, according to HDE’s forecast.
The latest HDE survey with 700 retailers shows that 22% of respondents expect sales to increase this year, while almost half of them expect results to be below the previous year’s level.
In December, retail sales fell by 1.6% compared with the previous month, official data showed. Analysts had predicted a 0.2% increase.
Many big names in UK retail had a good Christmas season — despite the sector being generally sluggish — but it seems John Lewis Partnership (JLP) may not have been one of them.
The retailer — which operates its eponymous department stores and webstore, plus Waitrose supermarkets — has missed its profit target after a disappointing festive season.
It hasn’t shared any info officially but internal documents seen by The Telegraph suggest bad news to come when it does release its results.
Those internal documents have only been shared with staff so far with the company saying that sales have fallen short of expectations and it’s unlikely to achieve its hoped-for £131 million full-year profit.
The company is said to have blamed “lower consumer confidence and weaker than expected market confidence” for the sales miss in the month to 21 December, although also the fact that key trading days fell outside the period.
Sales targets were missed at both of the firm’s chains, although the newspaper said it still claimed it outperformed rivals and staff should be “proud of our performance”.
It will be interesting therefore to see exactly what its figures were as a number of rivals have actually reported a good Christmas. If its stores have beaten other supermarkets and chains like M&S, perhaps its targets were too ambitious in the first place.
We won’t know for a while, but we do know that with M&S resurgent, JLP’s supermarkets and department stores have lost some of their lustre as the destination of choice for Britain’s middle classes.
So what were the firm’s benchmarks? Back in September it had said it was seeing strong demand and expected a significant rise in profits for the year to January. The prior year’s pre-tax profit had been £56 million and the year before that it made a loss.
It had also talked about its turnaround efforts paying off and that it was seeing a “considerable improvement” in performance, with the John Lewis chain in particular expected to benefit from a buoyant second half.
It’s been rumoured for some time that he would exit the label but it’s not yet known what his next step will be.
Jones has been widely praised for his work at Dior with his latest men’s collection shown this month being hailed as a success.
He’s been a key creative at LVMH having also designed its Fendi women’s collections. And he helmed Louis Vuitton’s menswear before he joined Dior.
The company said it “wishes to express its deepest gratitude” to the designer “who has accelerated the development of Men’s collections internationally and has greatly contributed to the worldwide influence of the House by creating an inspiring wardrobe that is both classic and contemporary, and connected to some artists of our time”.
And Delphine Arnault, who’s chairman and CEO of Christian Dior Couture,added: “I am extremely grateful for the remarkable work done by Kim Jones, his studio, and the ateliers. With all his talent and creativity, he has constantly reinterpreted the House’s heritage with genuine freedom of tone and surprising, highly desirable artistic collaborations.”
Jones meanwhile called it a “true honour to have been able to create my collections within the House of Dior, a symbol of absolute excellence. I express my deep gratitude to my studio and the ateliers who have accompanied me on this wonderful journey. They have brought my creations to life. I would also like to take this opportunity to thank the artists and friends I have met through my collaborations. Lastly, I feel sincere gratitude towards Bernard and Delphine Arnault, who have given me their full support.”
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