Where luxury fashion is heading: the slowdown, the new luxury consumer, purpose over price and the return of creativity.
By Shreya S · Last reviewed 31 October 2026
On this page: Where luxury stands · The new consumer · What comes next · The Ayerhs view
Where luxury stands
Is the luxury industry slowing down?
After a boom from 2021 to 2023, growth slowed sharply from 2024, as steep price rises put off aspirational shoppers and demand in China weakened. The response has been a wave of new creative directors, management changes and brand sales, and a renewed focus on the richest clients and on creativity.
Read on Ayerhs: Who designs what in 2026 · Who owns what
Has luxury become too commercial?
Many critics, including Ayerhs, argue it has: too many safe products, too many price rises and too little fantasy. The houses that are growing tend to be the ones offering something only they can make.
Read on Ayerhs: Is Luxury Fashion Becoming Too Commercial? · The Vanishing Magic of Luxury Fashion
The new consumer
What does the new luxury consumer want?
Meaning over noise: craft, longevity and a real story, plus experiences and a sense of belonging. Younger buyers in particular are more likely to buy pre-owned, question price rises and value brands with a clear point of view.
Read on Ayerhs: How the New Luxury Consumer Will Think in 2026 · The Business of Belonging · The Business of Taste
What does “purpose over price” mean in luxury?
The idea that a high price is no longer enough to justify luxury. Brands are expected to show why they matter, through craft, culture, sustainability or creativity.
Read on Ayerhs: The Future of Luxury in 2026: Purpose Over Price · 2026 and the Desire for Depth
What comes next
Can luxury be sustainable?
Luxury’s model of making fewer, better, longer-lasting things is closer to sustainability than fast fashion’s. The challenges are materials, supply chains and the pressure to produce more. Designers such as Stella McCartney, and the growth of resale, point the way.
Read on Ayerhs: 2026 Is the Year of Sustainable Desire · Stella McCartney · Luxury resale and vintage
Will luxury brands keep getting bigger?
Not necessarily. After years of chasing growth, some houses are rethinking scale: fewer stores, fewer products and a focus on depth over volume. Smaller, focused labels are also finding room again.
Read on Ayerhs: How Fashion Is Redefining Scale in a Post-Growth Era · The Return of Boutique Businesses
The Ayerhs view
What will luxury look like in the next decade?
Smaller in spirit, bolder in ideas. The new generation of designers now in place at almost every major house has a rare chance to bring fantasy and craft back to the centre, and the brands that do will define the next decade.
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