Loud Luxury Trends Return to High-End Brands
Table of Contents
fashion houses are recalibrating thier strategies as consumers push back against pandemic-era price increases and seek value alongside prestige. Brands are focusing on image adaptability and more moderate pricing to appeal to a broader audience and regain market share.
The Pursuit of Adaptability
Luxury brands are increasingly recognizing the need to project a versatile image to resonate wiht modern consumers. Prada, for exmaple, recently highlighted its ability to embody diverse aesthetics.
“WhatS beautiful about Prada is that it can be sporty, it can be glamorous.This is one of the few brands that can allow us to play three or four games at the same time,” group CEO Andrea Guerra said on an earnings call last month. This adaptability is becoming a key differentiator in a market where consumers desire brands that align with multiple facets of their lifestyles.
The Big Divide: Price Sensitivity and Brand Perception
Fashion houses are hoping that image overhauls can help inspire waning interest from consumers who became disillusioned with brands after significant pandemic-era price hikes failed to reflect product innovation.
According to UBS’s Evidence Lab, the price of luxury goods rose by a record 8% on average in 2022, well above the pre-Covid rate of 1% and the 3% recorded this year to May. this surge in pricing has led to increased scrutiny from consumers, who are now demanding greater value and justification for premium costs.
Only top-end brands Hermes, Rolex and Richemont-owned Cartier have been able to sustain significant price rises in 2025 – though many more have warned that tariffs may force their hand. Gucci,Burberry and Prada,meanwhile,have raised prices,but to a smaller extent.This disparity is creating a clear divide in the luxury market.
The Rise of “Quiet Luxury” and Affordable Alternatives
That’s likely to propel a further divide between quiet ultra-luxe brands and relatively more affordable labels. The success of brands like Loro Piana, known for understated elegance and high-quality materials, exemplifies this trend.
Marcus Morris, portfolio manager for European and global growth equities at Alliance Bernstein, told CNBC last week that higher prices could now only be justified by the “right brands, the right brand management and the right marketing of those brands.” Brands must demonstrate a clear connection between price and value, whether through extraordinary craftsmanship, innovative design, or a compelling brand narrative.
Moderate Pricing as a Strategy for Growth
Nevertheless, more modest pricing strategies may be what’s needed for troubled brands seeking to regain market share and compel a broader consumer base.
Luca Solca, sector head for global luxury goods at Bernstein, told CNBC.”Brands with a more moderate pricing approach [are] doing well… perhaps going to benefit from this middle ground.” this suggests that accessibility, without sacrificing quality or brand identity, can be a powerful driver of growth.
In a landscape increasingly defined by “loud luxury,” a more subtle approach can be advantageous.
“It might very well be less of an issue to show off this product, as it is indeed still a bit more affordable, let’s say, compared to some other brands,” explained analyst Ana Andjelic, known as Madjo. Consumers may feel more cozy showcasing products that offer a balance between prestige and practicality.