The luxury market stands at a crossroads. Despite global challenges and a modest outlook, the U.S. remains a key driver of growth, projected to increase 4-6% from 2025 to 2026 due to favorable economic conditions. However, the future impact of tariffs, exchange rates, and the potential evolution of aspirational consumer behavior remain uncertain.*
The question isn’t whether luxury will recover — it will. But the real issue is the lack of creative disruption, compounded by the carousel of designers and fashion houses. I can’t keep track of who’s designing for which brand anymore, and it’s creating so much uncertainty for me as a consumer. Do I follow the designer, or do I follow the brand? The constant turnover has made it hard to know where to look for inspiration — and harder still to know what I want to buy and from whom. The new crop of designers has failed to excite, and the lack of fresh, fun voices leaves many of us feeling disconnected. This instability, along with the tension between accessibility and exclusivity, is eroding the specialness of luxury, leaving brands struggling to retain that magic allure.
With over 20 years in luxury marketing and now as an agency partner, I’ve witnessed firsthand where brands connect deeply with consumers — and where they fall short. The luxury market faces a paradox: as we balance accessibility with exclusivity, the ability to make luxury feel truly special is fading. This is the opportunity.
At CHANEL, I learned to focus on brand image, knowing sales would follow. I witnessed firsthand how luxury clients sought meaning, authenticity, and exclusivity. They invested in the essence of the brand, not just the product. True inspiration and connection come from building relationships, not just transactions.
But today, there’s a creativity crisis. Brands are playing musical chairs with creative directors, battling dupe and resale competition, and quality is coming into question with sky high leather good pricing. Fashion shows are broadcast simultaneously on social media, stripping away the exclusivity. The industry has lost its edge, and the awe and mystery that once defined luxury has diminished.
Americans are nostalgic. We crave creativity and want to feel something when engaging with a luxury brand. Yet when was the last time a collection made our hearts race? The crisis is clear: brand identities are diluted, and even the most devoted fashion lovers are losing interest. In the automotive world, luxury car brands — once icons of craftsmanship — now look almost identical, with similar silhouettes from the side and back. Where is the distinctiveness leveraging the brand’s DNA beyond the affixed logo on the grille? Where is the modern boldness?
As consumers shift from acquiring products to creating memories, luxury brands must evolve. Post-pandemic, consumers seek experiences — bespoke travel, unique adventures, and moments that last a lifetime. Luxury is no longer just about owning; it’s about living.
Experiential retail has made strides, integrating culture and art into activations, from pop-ups to exclusive partnerships and events. But this is just the beginning. The aspirational shopper is craving joy again. Remember when shopping was about feeling something, not just acquiring? We need to bring that back.
Luxury brands must reignite that spark. Heritage alone won’t suffice — it must be refreshed, reinterpreted, and innovated. Luxury is cyclical, but it will only return if we fuel it with creativity, boldness, and a deeper connection to human desire.
Now is the time to shift the narrative and elevate the luxury experience. It’s not just about owning an item; it’s about dreaming, creating memories, and offering the extraordinary. Let’s make luxury fun again — for the top-tier shopper and the aspirational consumer who is yearning for something to believe in. The world is ready to be wowed. It’s up to us to show them how.
*McKinsey The State of Luxury Report 2025
