by Maura Carlin, Editor
Financial and fashion news is full of stories and data about luxury consumer demand dropping and lagging. The underlying assumption is that topsy-turvy economic times are to blame: consumers, particularly the so-called “aspirational” ones, are refraining from purchases. According to reports, the ultra-wealthy similarly are taking a step back and questioning, delaying, or reducing their luxury expenditures.
Image courtesy: @kseniamyasnikova via @hermes.addict
And while this is no doubt true, let’s consider whether and to what extent the problem stems from the luxury brands themselves, starting with the uncertainty. Labels have been engaged in a high-stakes game of fashion creative director musical chairs, giving fashionistas whiplash while wondering who’s in, who’s out, and who will be designing for these labels. For the last year, Chanel has operated without a head creative, only recently announcing Matthieu Blazy as Creative Director, with his first collection to appear in the Fall. For someone now in the market for a new Chanel bag, it poses a fashion-forward dilemma. Do you want a recent style from no-named Chanel’s design studio, or might you want to hold off to see what Blazy produces and nab a bag from his first grouping? He could be the next Karl Lagerfeld, and you don’t want to miss out on a coveted item, especially if your budget allows only limited bag purchases.
Image courtesy: @thefashionbugblog
It works in reverse too. Blazy has left Bottega Veneta, which has had a years-long run with hot bags, like the Sardine, Andiamo, and Cassette. With Blazy’s departure though, some wonder whether those bags quickly will be “out” as his successor, Louise Trotter, surely will want to make her mark on the brand.
This scenario is playing out across the luxury landscape. Do you want to be stuck holding the bag (pun intended) when Loewe dumps its popular Flamenco and Puzzle bags brought out by Jonathan Anderson in favor of the designs by his successors, Proenza and Scholer, formerly of their eponymous brand? The same is true for Anderson’s takeover of Dior from Maria Chiuri Grazia. And long before Michael Rider was selected to replace Hedi Slimane at Celine, even loyal Celine fans had expressed ennui about the emphasis on the archival Triomphe logo, suggesting the design may be passé. Fashion-forward folks do tend to gravitate to the newest and latest unless it’s vintage.
Image courtesy: @estherjunelife
Hermès, for now, has avoided this carousel of design and has seemingly managed to sustain higher demand than other brands. However, that doesn’t mean it is out of the woods when it comes to consumer sentiment. Its reputation as the “pinnacle of luxury” depends upon a calculated tactic of excellent craftsmanship and exclusivity. The emphasis on the latter is beginning to turn off some of its long-standing clientele, who are finding it more difficult to access desired items. Constant refrains of “sorry there are no bags” – implying ‘nothing for you’ but maybe others – after years of dutiful purchasing, can be a disincentive to continue working on your so-called, albeit well-established, profile. Making matters worse, in many instances, products other than handbags are perpetually unavailable. Don’t believe it? Just try purchasing a Farandole necklace, a belt, or even a double strap for the Hermès Apple Watch, and you’ll find yourself waiting for months.
As celebrities and prominent influencers have gravitated to Hermès, they have been embraced by the Maison. No doubt Hermès appreciates the free advertising and marketing (since Hermès claims not to have a marketing department).
Being squeezed out of Hermès are the dedicated “old-timers,” many of whom are getting older, which brings us to another issue. The focus on youth is part of the reason many feel ignored as the brand shifts to engage increasingly with Gen Z and Gen Alpha. Of course, developing new generations of consumers is important. The question is whether Hermès (and others) have gone too far. They could be alienating their greatest avenue for financial success yet.
Image courtesy: @lesliebibb
Much has been written recently about the impending “Great Transfer” of wealth that will hit Gen X, Millennials, and older Gen Z as they begin inheriting potentially life-changing amounts from the Silent Generation and Boomers. That includes transfers within a generation to women, as their male spouses pass and they gain full control of formerly shared spousal assets. It is estimated that $54 trillion (yes, with a tr) of assets will be transferred between spouses by 2048. While that wealth eventually will trickle down to their children, for some period, women in their 40s, 50s, 60s, and beyond, will likely be in charge.
When you think of it in those terms, it may not be wise for brands to reject the loyal and soon-to-be wealthiest clients, in favor of the young, famous, and flashy. Put another way, following the money could be a better strategy for brands, as it often is in investigations.
What do you think? Have your spending habits and desires changed?
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Updated: June 30th, 2025
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