Luxury’s pricing plateau: Why shoppers are turning away from the big names

For years, the luxury sector has defied economic gravity, ratcheting up prices season after season as status-conscious consumers eagerly pursued the logo-laden dream. But now, with Chanel flap bags surpassing the 11,000 euro threshold and Bottega Veneta’s once-2,450 euro Cabat bag now listed at 6,800 euros, according to Collector Square, the gravitational pull of consumer restraint is finally beginning to assert itself.

New data from UBS shows luxury brands raised prices by an average of just 3 per cent between January and May 2025, the slowest increase since 2019, the FT said. This isn’t simply a return to pre-pandemic inflation norms; it signals a deeper shift in the luxury psyche. After fuelling pandemic-era growth by banking on scarcity and aspiration, brands are now contending with price fatigue, macroeconomic uncertainty, and a growing class of buyers who are neither loyal nor impressed by another six-month markup.

While price hikes accounted for 80 per cent of luxury’s growth between 2019 and 2023 according to McKinsey, that well is running dry. Today’s consumer, even the wealthy ones, is reassessing value. They’re increasingly drawn to smaller, more agile fashion houses that offer exclusivity without ubiquity, and innovation without inflation. In effect, what used to be an industry of heritage and craft has, in parts, priced itself into a corner of its own making.

The result is a quiet but consequential migration. Those once loyal to marquee names are shifting their spending to less established, more “fashion forward” labels that offer uniqueness over mass recognition, a kind of quiet luxury with a conscience. Brands that once rode the wave of volume-through-pricing are now facing a reckoning: to maintain cachet, they may need to reconnect with craft, creativity, and real consumer connection.

Increasingly, discerning consumers are redirecting their spending power toward smaller, independent labels that offer craftsmanship, exclusivity, and storytelling, though not necessarily at bargain prices. Brands like Atelier Pegai, known for its high quality but affordable hand-finished leather, have built a loyal following among those disillusioned by the ubiquity and logo fatigue of major luxury houses. Others, such as Lemaire, Wales Bonner and Khaite, continue to benefit from this shift, offering understated design and a sense of creative authenticity. Even The Row, whose high prices often match or surpass the traditional maisons, appeals to a clientele seeking minimalist refinement over seasonal logo statements. Meanwhile, the vintage market remains a refuge for those seeking investment pieces with proven longevity: Hermès Birkins, Chanel’s flap bags and Cartier have all held their value, reinforcing the appeal of luxury grounded in heritage rather than hype. In a market where excess is under scrutiny and tariffs loom large, fashion’s future may belong less to the loudest logos and more to the labels that resist the urge to treat scarcity as justification for shock pricing.