The luxury sector is demonstrating resilience through transformation, according to a study by Ipsos presented at the “Dissonances, résonance et nouveau(x) luxe(s)” conference at the Sorbonne. The survey, conducted among 1,500 affluent individuals across the United States, France, and China, indicates that despite global economic uncertainty and geopolitical tensions, luxury maintains a strong appeal.
The study finds that luxury continues to serve as a social and symbolic marker, particularly among younger consumers. Among respondents under 34, 39% in China, 47% in France, and 65% in the United States reported an increased desire to acquire luxury goods. Ipsos noted that while this demand reassures industry players, shifting consumer expectations are reshaping the sector.
Price increases are a growing point of scrutiny. Analyst Erwan Rambourg highlighted that leather goods prices have risen by an average of 50% over the past four years. The Ipsos survey found that 73% of American and 70% of French respondents view luxury prices as excessive relative to perceived quality, compared with 43% in China, where the market remains buoyant but is slowing. In response, some luxury houses have abandoned discount strategies, focusing instead on rarity and prestige to regain legitimacy in China, which now accounts for 20% of global sales, down from 30% in recent years.
Ethical and social considerations remain a marginal factor in luxury purchasing decisions, despite recent exploitation scandals affecting brands such as Loro Piana, Dior, and Valentino. Consumers are also increasingly questioning the utility of luxury goods, with concerns over purchasing power and evolving personal values influencing decisions.
A notable shift is the growing preference for experiential over ownership-focused luxury. Ipsos reported that when asked to choose between a luxury bag or luggage and a shared experience in an exceptional location, 86% of respondents in France and the United States opted for the experience. The trend aligns with investments by luxury groups, including LVMH, in hospitality and related sectors.
Despite economic turbulence, the luxury sector remains attractive to investors. Deloitte’s “Fashion & Luxury Private Equity and Investors Survey 2025” found that nine out of ten investors remain willing to commit capital to the industry.
Overall, Ipsos concluded that luxury retains its status and demonstrates an ability to reinvent itself while maintaining its fundamental appeal to both buyers and investors.
