The topic of growth – or, rather, its apparent unattainability – has been a major concern for high-end labels lately. While the global luxury sector was estimated to have generated revenue of €364 billion in 2024, this was slightly short of the €369 billion seen the previous year.

Some observers have suggested the slowdown demonstrates the limits of a business model based on the leading players constantly putting up their prices.

However, at least one thing is evident: those players are looking again at their strategies to consider what changes they can make to preserve their appeal and margins. This is a key finding of a study by the technology company Lectra, referencing its AI-powered data analysis platform, Retviews.

The luxury market is strategically redefining itself – out of necessity, not just choice.

It has been tricky for many prestige brands to persist with their long-favoured strategy of sustained price increases. Our present era is, after all, largely defined by economic sluggishness and the fading purchasing power of certain customers.

As a consequence, luxury labels are not merely shifting their approaches as a way of wrongfooting the opposition – they have been forced to adopt a fresh perspective.

To put it in the words of Lectra’s president EMEA, Antonella Capelli: “The current luxury-market slowdown is a turning point for labels. They must now rethink their strategies, which had until now been price-centred”.

Certain trends are emerging as high-end brands adapt to the new reality

In fact, Lectra discovered that the strategies many luxury labels have been adopting for the present more growth-stagnant conditions, can be divided into two broad approaches.

Some labels were devoting their energies to the ultra-luxury segment, attempting to capture a highly specific audience that isn’t as vulnerable to economic turbulence.

There was, however, another group of brands – including such names as Louis Vuitton, Prada, and Miu Miu – for which the emphasis was instead on luring a new clientele through the tweaking of entry-level items’ pricing.

Leather goods and handbag charms are playing fundamental roles

On a backdrop of relative uncertainty, luxury brands have been making the most of the continued attractiveness of leather goods for an extensive clientele.

In relation to this, Lectra found some brands were exiting the market models that were similar but less expensive, as a way of prompting consumers to choose their pricier equivalent products. This has seemingly led to luxury leather goods becoming even costlier to buy.

Amid the rebalancing of the handbag market, handbag charms are gaining stature as a new accessories trend. They may be very small, but these particular leather goods are acting as a gateway into the luxury sphere for more cost-constrained shoppers.

The Retviews data confirmed this phenomenon, a remarkable 51% expansion having been seen from 2024 to 2025 in the presence of handbag charms and keyrings in luxury brands’ ranges. This contrasts markedly with the decreases recorded for other accessories categories.

Partnering with digital experts could be key to navigating your brand through the storm

All in all, prestige brands are clearly making moves to rejig and shore up their positions, at a time calling for greater strategic and creative ingenuity than they may have needed in years past.

With over 50 years of combined experience in the luxury sector, Skywire have been a trusted strategic partner in growth for luxury brands, and can blend bespoke strategy, ecommerce and technology services tailored to your needs.

For a wide-ranging discussion about how we can give your own business a growth advantage through our services as a leading marketing agency for luxury brands, please enquire to the Skywire team today.

Source:

• https://ww.fashionnetwork.com/news/Luxury-lectra-study-shows-sector-seeking-new-growth-strategies,1778476.html