Luxury Priced Itself Out. Now It’s Paying for It.
Luxury fashion has a problem, a problem that it created entirely by itself — and the numbers have stopped being polite about it. Between 2022 and 2025, the global luxury consumer base shrank by roughly 70 million people, according to Bain & Company. That’s not because people suddenly stopped caring about quality or stopped wanting nice things. But because they looked at the price tags, looked at their bank accounts, looked at what the cost of living had become — and quietly walked away. This isn’t about rich people cutting back. The ultra-wealthy ones are actually fine. The top 0.1% of luxury shoppers account for 23% of all luxury sales, and brands like Hermès that grew in the opposite direction by 17% in 2025 alone prove that — and these people are not going anywhere. The thing is about everyone else: the aspirational buyers, the people who saved up for one good piece, the ones who treated a purchase as an event rather than a habit. That group got priced out — and it’s luxury that...