The State of Luxury: Pricing strategies, iconic products and market shifts

The luxury industry enters at a pivotal moment. After more than a decade of uninterrupted growth, the market is recalibrating. According to Bain & Company, global personal luxury goods sales declined from €369 billion in 2023 to €364 billion in 2024, marking the sharpest slowdown in 15 years.

This shift is driven by price fatigue, evolving consumer expectations, and regional economic pressures. Retviews data reveals how leading brands are responding—with smarter pricing, streamlined assortments, and renewed focus on iconic products.

Luxury brands are rethinking their pricing strategies. Where double-digit price hikes once drove growth, most players now limit increases to low single digits. The pricing gap between Europe and China is narrowing, and brands are exploring new entry points to maintain accessibility.

Some, like Gucci, are absorbing tariff impacts by concentrating price increases in the U.S. Others, such as Bottega Veneta, are distributing costs globally—demonstrating a resilience strategy unique to luxury.

• Strategic assortment discipline: Brands are streamlining SKUs and phasing out low-margin options to reinforce exclusivity.
• Icons as margin anchors: Iconic bags justify sustained price increases and drive consumer trade-up.
• New entry points: Accessories like charms offer accessible luxury without diluting brand value.
• Global pricing agility: Tariff impacts and cost pressures are being redistributed to maintain competitiveness across markets.

Retviews by Lectra delivers AI-powered market intelligence to help fashion brands optimize pricing, assortment, and positioning. With real-time data and customizable dashboards, you gain a 360° view of your competitive landscape—so you can make confident, data-backed decisions.