The Meaning of Luxury Has Fundamentally Changed

The luxury sector is undergoing significant changes as consumer attitudes challenge the worth of premium products. The haute couture season for Fall/Winter 2025-26 showcased 27 collections, highlighting a crisis within the luxury industry. Beauty divisions, which were once reliable, are now experiencing instability. In 2020, Hermès introduced a beauty division that generated €15.2 billion in 2024, accounting for 3.5% of its overall revenue, though its entry into couture remains uncertain. Brands like L'Oréal, Estée Lauder, and Puig are facing difficulties with ineffective cross-marketing. Shoppers are increasingly focused on affordability, sustainability, and ethical practices. Gen Z and Millennials lean towards TikTok for research and enjoy experiential pop-ups. Sustainability efforts include Chanel's Neverold initiative and H&M Group's partnership with Renewcell. Meanwhile, ultra-fast fashion brands Shein and Temu are growing in Europe, merging fashion categories.