2025 is quickly proving to be one of the toughest years for the luxury goods industry (2020 aside). Department stores, our favorite luxury brands, and consumers feel it, too, as the overall attitude towards luxury has dramatically shifted.
Forbes reported that the market faces a sharp decline of up to 5% this year. The industry hasn’t faced challenges of this significance since the 2008 financial crisis and, later, the COVID-19 pandemic of the early 2020s.
So what’s changed?
From Post-Pandemic Boom to Buyer Fatigue
For starters, luxury price increases seem never-ending, but this is nothing new. Following an increase in demand after the COVID slump, luxury brands began to capitalize on the demand, and prices soared. Later, they soared further as brands scrambled to renew a sense of exclusivity.
In 2025, US tariffs caused goods to reach astronomical prices. Couple that with an unstable economy, monumental designer shakeups in the luxury world, and a sense of declining quality, and it seems that many shoppers have major luxury fatigue.
As we look towards the fall, we aim to cover newer brands as well as contemporary brands, along with the brands we know and love, we want to know. Are you shopping for luxury more mindfully this season, less, or not at all?
Bought one this year (Dior backpack) and I have buyers remorse. Love the bag and can afford it but the price felt stupid. Definitely have fatigue and would rather spend money on travel and even jewellery which, despite the crazy price of gold, feels like better value. There are now way too many collections and celebrities pushing the new bags that everything feels like it’s dating super quickly. I have also sworn off stores like Chanel because I feel like there is a strategy of “let’s push the prices as far as we can to see what idiots are prepared to tolerate.”
I agree stick to Classic more affordable bags and greater quality.
Looked at a Chanel and it was $8,000!!!
See my above post on Balanciaga bags!
Hermes has gone through the roof, too! My SA offered me a 25cm Birkin Ostrich and it was $24,600 ($26,900 with tax)! She said they had one price increase in January and then, due to the tariffs, another significant increase in May. These bags, at least for me, are completely out of reach.
I agree with your comment.
I have Everything Fatigue. Consumerism, politics, environmental change, pollution, economics, career instability, tech innovation (& also its negatives) – the speed and enormity of it all is Just Too Much. Even the design houses could be called “fast fashion” these days because nothing is in style for more than a few years. It used to be decades that had a style attached to them (1920s, 50s, 80s…) and now it’s “That’s so 2018”. I’ve reached bag peace via over-saturation. It’s unlogo’d simple classics for me & that’s it.
I get it! For me it’s consumerism! I am more into pre-loved bags
Thank you so much for this comment. Feel less lonely.
I feel this.
I am, but mainly second hand. For one I prefer older styles, the current collections feel like iterations of past seasons. Seconds the prices are getting ridiculous. Houses take old models, add a clasp here or there, cheapen the materials and double the price. My impression.
You know how there is a snack you would eat every day and then one day, you realise you don’t like it any more? That is how I am with designer bag shopping. For quite a while, I was focused on building a designer bag collection and now… it just doesn’t seem like a priority. I have plenty of great bags for a variety of occasions. Do I really need, or even want, more? My last bag purchase was a Longchamp Pliage (before that a Saint Laurent 4.3 Jamie shopping bag). If I get another bag, it will probably be a Borbonese tote costing about 500 euros. But mostly I’ve pushed the pause button on products from premium designers.
The snack analogy is perfect. I’ve pretty much satisfied my appetite for designer bags but I still enjoy this site for the interesting and insightful commentary.
I’m absolutely done. After two moves in just two years, I’ve come to a hard truth that I own way too many shoes and bags, most of which have been collecting dust. Honestly, I feel embarrassed. Overconsumption has taken a toll on me and shopping no longer brings me the joy it once did. It’s taken me 46 years, but I’ve finally awakened. I’d much rather spend my money spreading joy to others. It’s wild how kindness feels like it’s becoming rare but I’m determined to be part of the change.
Cheers to you!!!
I am also feeling the weight of buyer’s fatigue. It’s as if we’re living through a quiet global recession, where even “luxury” no longer carries the same allure.
With brands like Chanel pushing to such astronomical price points, I’ve simply found myself disinclined to make a purchase.
I bought my last chanel in Dec. 2019 before that in 2017 and if i every decide to buy another, it will be a well researched pre-loved
It appears that greed outweighs keeping the market strong, which may cause extinction.
If brands find the right balance, it’s a correction of the market. In the long run, it’s better for a luxury brand to sell 1 bag for $10,000 than 10 bags for $1,000.
Except that luxury brands do not work like this. Most of their profits are made through aspirational buying (perfumes, make-up, woc). If they alienate themselves from the middle-class, they won’t survive. And to keep the middle-class dreaming, they need to still be (remotely) accessible.
They will keep selling perfumes, make-up, and small leather goods for the middle class. But for bags and other more substantial items, the middle class can no longer afford them.
Not necessarily
It’s not affordability for me ( in the upper .5%) but I’m weary of being treated as an easy target by greedy design houses. Minor inflation nor labor costs nor cow hides nor fabric increases justify these repeated price increases coupled with no extra value (creativity) for the price. This has become a game that I won’t play until sensibility returns. Maybe we should boycott purse buying for a solid year to send a message.
This is the first year in the last 15 years or so that I haven’t bought a designer handbag. I definitely feel luxury fatigue and also a sense of diminished joy when out shopping. Even the SAs I meet don’t seem like they’re having any fun. However, I’m looking forward to more posts about contemporary or new brands!
So right! Do love old Loewe tho
I sold my luxury bags and am going back to coach. Sticking to contemporary.
I am going to make sure my bag collection never goes over 20. Recently I bought the Coach Teri hobo bag from the Outlet and Polene bags secondhand.
Keeping my 60 bags plus designer bag collection, to remind how silly it was to invest thousands of dollars into bags! I will be dusting off my vintage bags as lots are making a comeback. As an older woman and retired, travel and trying to maintain good health are my priorities.
Slim, I am like you. I am 65 and have 60 plus designer bags and the majority are Gucci. I have not seen anything lately that I like. Not only are the prices extremely high, but I find the materials they use not to be that great and almost every designer has the same type of bag. Plus they are getting smaller. My hubby bought me a LV never full in leather not the coated canvas. It’s like a cream color. He tends to buy all my luxury bags and they have to meet his standards. We would rather spend the money on traveling.
Slim, you’re right 👍I am in my 80s pick up bags when travel I’m, Barcelona, Milan Cape Town … better prices.. but have a Kelly that’s not even fun to use. I have plenty oh it bags , but what’s the point? I recently had a terrible experience on the Real Real bought a pristine channel bag for over $3000. It arrived : ugly , too large and not as represented. Sent it right back to resell and saw it on for 1500. Asked fro it returned as might as well use it… and they “ lost it” … buyer beware!
I also had a not so pleasant experience with The Real Real, their descriptions are inaccurate and photos need improvement.
I also have had a bad experience with the Real Real. One purse smelled musty. Used it once and put it in my local consignment. Then the next one had a horrible cleaning product smell. Like those horrible Glade floral plug ins. Thank goodness I bought the insurance to get a refund. Also did not have a good experience with selling my LV which was like new. Will never buy from them again. I am cautious about buying from the online consignment sites.
I have been a faithful Louis Vuitton buyer for 30 year! I used to like going to the stores and have fun. Now there is some pressure I feel that to get an average LV bag you have to spend $3000.00 + and I did it a couple of times. Now I realize how much I can get elsewhere with that kind of money, not just buying bags (which I did 4 times this Summer in more affordable leather French brands) but also think of all you can buy and feel free, nobody looks at you since you are not a brand advertisement! Here is an idea : my husband and I took a 23 days transatlantic cuise From Miami to Marseille this Spring and the cost for a balcony cabin was under $4000.00! ha ha!
Good for you!!
Not shopping for luxury because I already have a pretty nice collection of luxury bags that I am happy with and current prices are too high for me. Unless the bag is really special, I don’t foresee getting a new bag anytime soon.
It is possible that I may buy a luxury handbag this year. There is a but…I cringe when I think of paying so many thousands of dollars for a handbag.
…many brands are recently out of my budget
Go to Ebay and Vestiare
Be careful with Vestiaire. I bought a Hermes Victoria and it was an obvious fake. It even smelled like stinky plastic and it had damage that didn’t even match the sellers description. It took weeks of arguing and then a dispute with my CC company to get my money back. Their “authenticators” are a joke…both here and in France (which is where my claim got escalated to).
Does shopping secondhand count? I have a wishlist of things that I would like to own most of which were around while I was raising my two children. Some have fallen off of my list because my preferences in bags has changed. The Chloe Paddington is one that has fallen off. But, I recently purchased a Louis Vuitton Wilshire PM which I am loving.
I still shop in department stores. I rarely go to free standing boutiques. I feel like I’m being followed. My husband and I are planning a trip to Japan in December to visit my son. So, this bag will probably be my last luxury purchase for a while. I’m in desperate need of a new suitcase.
I have a PM Wilshire that I never carry. I’ve thought about selling it, but the resale prices are really low and mine is in great condition.
Mine was in vernis. Still had the receipt 2007! It was a bday gift from my mom. Had to sell it since it was starting to discolor. 1 of the 5 bags i sold to fund my constance.
No interest in designer. My common sense kicks in whenever I see the price tag. I also find myself carrying a full size purse less and less so the bags I have are primarily in my closet.
Now days being retired my go to bag is my wallet when leaving the house. I have so many designer totes that weigh me down, while out and about.
I have a few LV’s and a beautiful Burberry that I bought years ago at Nordstorms. I won’t part with it and pull it out in the winter. I have never seen it on the re sale sites. I love my Longchamp Le Pliage totes. They are affordable and great for traveling.
I too am not loving the high prices of luxury brands. I am holding out for the Speedy 30 and then that’s it. It is a classic.
Also I hate seeing so many LV’s and wondering where did all these LV’s come from since everyone is carrying them. Even the young ladies, High School and College age. I was 50 before I got my first luxury LV bag.
I stopped buying a long time ago. I have an excellent collection of bags that I no longer use. These will go to my daughters, so they don’t need to buy. At this point in my life, I wear fewer luxury items. I have more freedom and no need to worry about ruining a piece.
I am slowing down but that’s because I treated myself quite a bit these past few years as I was going through a difficult personal experience and enjoyed matching bags to outfits as a fun diversion.
One experience that is making me reconsider luxury bags, however, has nothing to do with prices, although that’s a big consideration, is something that happened to me earlier this summer when I was walking the streets of Philly and my stilettos got caught on the uneven sidewalk and I went flying. I was so worried about my new Chanel mini that I somehow landed on my side and miraculously avoided scraping the bag on the pavement. I think subconsciously I was was thinking about protecting the bag in the moment. LOL. I did skin my knee pretty bad but happily that was all. I would have been really upset if I had damaged the bag, and of course, been injured more seriously.
Anyway, it did make me wonder about investing in luxury bags. I would have been bummed, for instance, if a Tory Burch bag had scraped the pavement but it would have been less devastating than a C/D/H brand. So, I am wondering if a still nice brand but not super luxury is more practical for the unexpected.
Oh dear, what part of Philadelphia? The cobblestones of Society Hill or in Chestnut Hill where the tree roots under the sidewalks make every stroll an adventure?
It would give me pause to think that in a moment of danger I placed a thing above my own health and wellbeing.
The mini (that thankfully still looks the same) on an earlier trip to NYC.
I’m so sorry you took a spill but am glad you came out of it with scratches. When I broke my second knee and my LV went crashing to the ground even through the pain I was like omgthebag. It took months to rehab after surgery…and longer before I could stomach looking at the bag. Glad you are ok!
Why are you blocking your face? We can see the photo of your face next to your name, and you look lovely, btw. 😊
The pointy shoes that got me in trouble. They got a bit scuffed in the front but better than the bag! 🙂
I bought the Louis Vuitton Vagabond bag last month and a pair of Prada shoes. That’s it for a while. Closets are not expandable!
pics or it didn’t happen!
I really enjoy the Monogram Archive releases.
Fabulous, thank you for sharing!
Men get the best bags!!
I would buy this bag, love the style! I wonder if there’s a vintage bag that looks like this?
I don’t think so. At least it’s not directly inspired by an older model. I think the “Monogram Archive” name for the line comes from the fact that it is using monogram canvas and pre-tanned vachetta leather.
I have an extensive collection of perfect vintage balanciagas!
Just purchased a new Work bag at $3200
wow
and my husband bought me a new city in the Army green $2,900
What happened is that I had not been buying for years but after seeing these high prices I began new searches and there are incredible beautiful bags on Ebay available for really good prices!
I bought a new 2011 orange work and an excellent condition Navy City 2017 ($450)
and an excellent anthracite Work RGHW
for $670
(these older bags are such quality leather it is not
even close to the new so expensive new ones!)
How do you verify the authenticity of bags off eBay? I’m genuinely curious because I feel like vintage is such a good option right now and I would love to start exploring that avenue. Any advice would be much appreciated.
Check out The Purse Blog forums – https://forum.purseblog.com/forums/-/list.
I can’t speak for other designers, but there is an authentication thread on the Coach forum, which I use whenever looking at their beautiful old school leather bags on online markets (eBay, Etsy, Poshmark, etc).
On EBay, first eliminate anything where tge price us too good. Then read description carefully and compare to other sites. Check seller’s reputation. Then make sure your are getting authentication. Even if you have to pay for it. Don’t buy anything without it.
Also, their return policy is very telling. If they have a moneyback guarantee, then it sounds like they stand behind their item. Also, if it sounds too good to be true, it probably is!
Funny how people in 2011 and 2017 were complaining that the quality was crap compared to their older bags. 🤣
Why was my comment just deleted?
In my view, the major problem is that the designs lack sparks. Let’s face it, what has been that enticing in recent years?
Amen. I really miss the old Moynat — they used to offer a variety of styles in great colors, all superbly made. Delvaux is slowly starting to go the same way.
Uuummmmm…….what about those price increase every time you turn around???
I was a Chanel Camellia client for decades a, legacy status from my mom. I stopped buying Chanel bags when they started using bonded leather. Their RTW is garbage now too.
This blog post is so on the nose that it’s scary. I’ve felt this way since 2018 and it gets worse every day.
I’m loving discovering or rediscovering brands that are understated, no logo and great quality.
What is “bonded leather”?
Bonded leather is a process where a high end leather is split to be the base, and then treated and processed and stamped. It can have as little as 1% actual leather
The leather on the Coco handle, Chanel 19, and Chanel 22, at least in part, reacts like and smells like bonded leather. Chanel has not responded to customer concerns.
For at least 5 years I have stayed away from luxury handbag brands. I had 50 or more designer handbags. Finally, I faced a reality check and wondered why I had purchased all of them. Sold many and lost a lot of money but at least someone was going to enjoy them. Thought about purchasing one recently and was put off by the ridiculous price. I am not saying I will never buy another one but as of now I find the increase in the goods too much. I am satisfied with the few classic bags I have left. I no longer want to have buyers remorse for spending an excessive amount of money for something that is beautiful that I really don’t need.
While I enjoy “window shopping” luxury, I’m investing in exceptionally crafted bags for modest prices with great aesthetics and practical use. Kaai has stood out as my #1, go to, cannot wait for an opportunity to add to rotation. Next on the list: pre-order for the Horizon in suede espresso. Whoohoo!
Shopping lux more mindfully this season for sure, by either shopping less or not buying at all! Enjoying the comments I’m reading on here, as great minds think alike!
I feel like I just have so much already, and there isn’t a lot that screams “MUST HAVE” at me like in the past. Maybe those two things are related + getting older.
I am, just fewer items than years past. I make a list of things I am interested in, I can purchase a couple of the items each season. I am speaking of designer items in general, no way I can buy two bags each season!
I continue to buy as normal, one bag a year. Just brought the LV hideaway bag yesterday
I have scaled back my indulgences. Keep all my CHANEL, Gucci and LV bags in my late husband‘s gun case.
One day, I looked at everything and asked myself, “Do I really need anything more, I hardly use what I’ve got….?” I still get tempted but spending on other things like house deferred maintenance and investing in stock market. Recently, I got tempted to purchase an Hermes belt, but the $800 price tag turned me off.
The end I began with was to curate a classic luxury bag collection that I enjoy. My favorites are LV, Chanel and Dior. Now that I have done that, similar to other posters, I’m mostly done. I picked up a pink My Dior mini bag and a Chanel card holder this year but the prices, quality concerns, and labor practices are a real turn off. I’m spending a month in Paris and I look forward to seeing what lower end and vintage have to offer.
I would buy an Hermes B or K if offered. But I would be sorely tempted to sell it for profit right away. I see other bags I like, but then realize I already have all of my needs covered with bags I already own. With every potential purchase now I ask myself what I already have that the new item would replace. And realize I have enough!
And there are so many fakes. I live in an affluent neighborhood But even here I know women that buy fakes. They can definitely afford to buy real, but does the “stupid” price puts them off?
Just like the first comment said , I can afford to spend that much but you really start feeling “stupid” paying that price.
I am curious what is the mark up on these bags. And has the increase in prices translates, to some extend, to employee pay/benefits increase? Can we have an investigative reporting on this issue here? That’s when the “stupid” feeling might truly sink in.
Haven’t bought luxury for awhile, and have been trying to stay with a lower price point after almost two decades of going down lots of designer rabbit holes buying, reselling, and repeating in the 4-figure market. My collection currently includes a few Coach reissued designs (Dinky, Duffle and Patricia Legacy in two colors each), and the rest are from smaller or independent designers (Graf Lantz (their Hana Hobo is awesome!), Nisolo, WP Standard, Hyer Goods and AllSaints). Been otherwise putting what money I have into my home and have been finding a lot of joy in that. I don’t think I currently own a single bag that was more than $600 retail, and the majority are under $300 retail. To each their own in finding what works best for them and brings them joy!
The boutique/retail prices are such a joke–only it’s the labels laughing all the way to the bank. They’re making a mockery of us, their customers. I was having lunch with a friend today at RL (surrounded by the bags we talk about here) discussing just this thing. She is obsessed with a Goyard backpack but is planning not to spend the $4k on the bag and instead pick up a fake in NY. This saddened me greatly and I said so…we know what counterfeits fund…she didn’t really care. I don’t buy fakes, never will. And for now, I’ll be sticking with what I have. No idea how many–it’s a lot…plenty. If I add anything “new” it will be via resale.
Yes, I’m only into special orders/ hard to find SLGs/ bags.
A lot of comments about how buyers feel priced out, but I think that’s exactly the strategy these brands adopted. The market is saturated after two decades of unlimited growth. Raising prices weeds out a certain clientele, which makes the bags more desirable.
True but I’m not sure that was the plan given how desperate my SA’s seem. There is an invitation almost every week to see the new arrivals, visit store etc.
I used to buy 2 bags a year, one in spring and one in the fall. I now buy 1 bag every two years. I still love a good designer bag, but not at the current prices. My collection of 30 bags is good for now and I would rather, as others have said, spend my money on travel and jewelry as both feel like a much better value long term.
In a word, no. I bought a trove of bags in the early aughts and have felt uncomfortable with adding to that for several reasons. My lifestyle changed after Covid and I simply do not need to buy very expensive bags for myself. If I want to carry Chanel, Prada, Gucci, LV, I have them. I also feel silly paying so much for a diminishing amount of satisfaction. Additionally, I haven’t really seen anything that really grabbed me. That being said, this summer I did buy myself a Loewe small font tote in raffia with embroidered flowers and I have loved everything about it.