By Jennifer Mathews
- U.S. luxury spending dropped 6% year-over-year, forcing brands to rethink who they’re designing for
- Gucci and Louis Vuitton now target middle-class shoppers with sub-$500 products amid trade turbulence
Luxury has always sold aspiration, but these days, aspiration looks a lot more like a $500 canvas bag than a $5,000 statement piece. As U.S. spending on luxury goods fell 6% year-over-year in 2024, the old playbook of exclusivity and extravagance is cracking under pressure. Brands like Gucci and Louis Vuitton (LVMH +1.54%) have responded by releasing more “accessible” items from crossbody bags, logo belts to perfume sets all priced just under the psychological $500 mark.
Why This Matters: If we’re being honest, the global luxury goods market isn’t going anywhere, it’s still expected to top $495 billion in 2025. But the way brands reach that number will look different. For Black and Brown communities, the cultural vanguard for everything from sneaker drops to scent trends and this moment feels personal. After years of exclusion, we’re being courted. But inclusion at the checkout line is not the same as inclusion in the boardroom.
The timing isn’t random. Trade war anxieties and softening demand in key markets have brands scrambling to recoup sales from a disappearing ultra-rich clientele. But in trying to win over the middle class, luxury houses are finally bumping up against the very cultural consumers they’ve long mined for style but rarely served.
Situational Awareness: The pivot to “affordable luxury” is a cultural litmus test. Will these brands just adjust price points, or will they finally invest in the people who make their products desirable? That means hiring Black and Brown creatives, funding community partnerships, and telling more than Eurocentric stories of wealth.
Because in a down market, belonging sells. And culture, our culture has always been luxury’s most valuable asset.
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