Over the past year, the luxury fashion industry has confronted headwinds that have challenged its yearslong growth. To help offset the broader slowdown in the market, top luxury houses have raised prices and courted top clients.
While price increases and a focus on the wealthiest consumers may help buoy revenues in the short term, these strategies may impede growth in the long term if pursued in a vacuum. Instead, luxury fashion businesses should simultaneously focus their efforts on building relationships with aspirational luxury consumers (ALCs)—that is, those who spend a moderate amount on luxury goods—a market segment that is often misunderstood.
State of Fashion: Trends that matter in 2025 webinar
The global fashion industry teeters between hope and upheaval in 2025. The post-pandemic high has slowed, leaving a business landscape riddled with challenges—economic uncertainty, a climate crisis that demands action, and increasingly discerning consumers.
Join Gemma D'Auria and Anita Balchandani on Tuesday, February 18 at 10:00 a.m. EST / 4:00 p.m. CET for a discussion following 2025 New York Fashion Week about how fashion and luxury brands can thrive in this complex environment.
Recent interviews with industry leaders and the results of a global consumer survey suggest that although luxury fashion executives believe ALCs are an important consumer segment, their understanding of ALCs may be at odds with how those consumers view the luxury market themselves. Believing myths about ALCs may be a costly mistake, considering that the segment accounts for 18 percent of the total fashion market value—and 50 percent of the luxury market’s value.
In this article, we dispel myths about ALCs and identify five ALC communities to help luxury executives better understand and target these consumers.
To read the full article, download the PDF here.
