Luxury and Fashion: What to Expect in 2026 and Beyond

·24 min·2 clips

Jessica from Euromonitor reveals how luxury is weathering crises like Trump tariffs and cost of living, but a shift is coming.

The episode begins by setting the macroeconomic context, noting challenges such as new Trump tariffs, geopolitical issues, and the cost of living crisis. It contrasts this with luxury's historical performance, which has often outpaced GDP growth, even during COVID-19 in regions like China. However, a slowdown began around 2021-2022, prompting brands to make bolder strategic decisions. Consumers are increasingly questioning value, shifting from materialism towards experientialism. Market data shows luxury grew 3% to $1.5 trillion last year, but forecasts indicate low single-digit growth ahead. The fashion industry, particularly apparel and footwear, faces similar headwinds, with flat growth expected from 2026 to 2030. Bright spots include emerging markets, with APAC accounting for 30% of global growth and regions like Latin America and the Middle East adding $34 billion in sales. The discussion then delves into value redefinition, emphasizing wellness, sustainability, and deeper personal connections. Examples include Louis Vuitton's ice cream kiosk in Italy, which uses nostalgia to create affordable luxury experiences. In fashion, Hoka's growth is attributed to functionality and community events like run clubs. The experience economy is highlighted, with 77% of consumers valuing real-world experiences, illustrated by Zara's travel mode app that offers shopping delivery and travel guides. Luxury brands are integrating experiences, such as the Tiffany Blue Box Cafe in Mexico City, which celebrates local culture. Wellness is becoming a status symbol, with high-income consumers prioritizing health and travel. Brands like Viore expand globally by partnering with local influencers and gyms. Collaborations, like Dolce & Gabbana with a Sicilian hotel, blur industry lines. Sustainability is reframed as a value driver, with data showing 28% of consumers willing to repair clothing. Brands like Louis Vuitton launch repair apps, while Uniqlo adapts to EU regulations with transparency initiatives. Winning strategies involve emotional storytelling, balancing digital and human connections, and targeting diverse demographics, including the wealthier 60-plus generation.

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Luxury and fashion are tested against tariffs, tighter wallets, and changing ideas of value.

The episode ties luxury and fashion to Trump tariffs, geopolitical strain, and the cost of living crisis, while Jessica from Euromonitor argues that the sector has historically absorbed shocks better than GDP or other industries.

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You want a straight read on where luxury and fashion may be headed in 2026.

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