For decades, luxury followed a simple equation: people paid more when they felt they were getting more—more craft, more story, more status. Recently, that equation has come under pressure. After the post-pandemic boom, the market cooled, and consumers began doing something unusual in luxury: asking questions. “Can I afford it?” quickly turned into “Is it worth it?”
In 2024, the global market declined for the first time since the financial crisis (excluding Covid), with 50 million consumers exiting the category. While 2025 showed signs of stabilization, the rules of engagement have permanently shifted; the "unforgiving market" of the previous two years has left us with a consumer who prizes provenance over logos.
This is not a rejection of the major luxury houses. Many remain highly profitable, with the ultra-wealthy continuing to drive a significant share of sales. But in a market shaped by intense marketing and rapid scaling, luxury needs to feel deliberate again. Craftsmanship, service, and credibility matter more—and storytelling only works when it’s backed by substance.
At the same time, the reset is opening new space. Smaller players are seeing more opportunities to conquer niches. Independent brands, limited production, and founder-led businesses are benefiting from renewed interest in provenance, longevity, and authenticity. For entrepreneurs and newcomers, this is a rare opportunity—not to compete on scale, but to take a slice of the market that was previously dominated by established brands.
At the Luxury Summit 2026 in Zurich, co-hosted by Forbes and FACES, leaders from established maisons will meet entrepreneurs, creators, and investors to discuss how luxury moves forward—from brand positioning and value creation to craftsmanship, growth, and new opportunities at the edges of the market.
