In fashion and accessories, Gucci—symbol of the industry’s ability to reinvent aesthetic codes—also operates on rougher terrain. The young consumer, a post-pandemic engine, now buys with more calculation: seeking value, authentic storytelling, circularity, and experiences, while also comparing, waiting for promotions, and switching brands quickly. The slowdown in China—a key market—and the saturation of logo-driven products have weighed on traffic and conversion, forcing a rethink of assortments, pricing, and the cadence of newness. This isn’t an isolated label’s problem: it’s a headwind that affects the whole sector, as 2025 reports suggest a contraction of the personal luxury goods market of between 2% and 5% this year—the first significant decline (excluding the pandemic) in more than fifteen years.
Why are those 50 million leaving? Partly because of the “price shock” that pushed out entry clients; partly due to spending normalization after the excesses of “revenge shopping”; and partly because of a tougher macro context: tepid growth, high interest rates, and volatile confidence. Add to that a shift in spending toward leisure, travel, and technology, and an unprecedented reputational scrutiny: social and environmental coherence is no longer optional. In parallel, high-value clients (HNW) now concentrate roughly half of sector spending, partially shielding revenues but exposing the fragility of the aspirational rung that fueled volume and visibility. For brands, the takeaway is twofold: reinforce the core without losing the pipeline.
Financial markets have reacted harshly. Long-term targets that are less ambitious or clouded by technological uncertainty are punished instantly; any sign that growth will depend less on average ticket and more on volume in a cooler demand environment raises questions about margins and capex. On this board, luxury autos and high-priced leather goods share dilemmas: how far to raise prices without breaking demand, how to dose scarcity, and how to integrate the energy transition or circularity without diluting the aura. Ferrari, for instance, maintains that current technology still can’t deliver a 100% electric supercar that fulfills its experiential promise, and is resetting its roadmap with hybrids as a bridge; top-tier fashion, for its part, is exploring more accessible lines, watches, and small leather goods to win back those who left—without trivializing the emblem.
Brands with disciplined identities and tight distribution control will use this moment to clean up channels, reduce reliance on discounts, and elevate perceived service quality. In product, expect a stronger bet on timeless icons over frenetic drops; in pricing, micro-segmentation and perks for repeat purchase (repair, buy-back, personalization). And in retail, less noise and more theater: stores as relationship spaces, data in service of the experience, and omnichannel models that don’t compete with themselves. Winning back the wavering aspirational client means restoring the promise of longevity (quality and resale), offering cultural reasons to belong, and proving—through actions—that exclusivity and responsibility can coexist. Luxury isn’t disappearing; it’s becoming more selective. And in that arena, Ferrari, Gucci and company must show that the summit remains their natural habitat, even as the path narrows.
