Apparently high-end consumers are slowing it down with luxury shopping.
According to a Bernstein report based on a survey by Agility Research and Strategy, luxury consumers are taking a step back from extravagant shopping habits.
Since the end of the pandemic, high-end customers were holding up the economy with their luxury shopping, while aspirational clientele were keeping it more low-key with their spending habits. But due to the dooming recession, Trump’s trade policy and the general economic instability, even the most ultra-wealthy shopper is toning it down, according to Agility’s data.
“Notably, HNWI (high net worth individual) panellists are now less optimistic than ‘affluent’, or less wealthy peers, a contrast to prior surveys where they were consistently above. We would expect this to translate to slower luxury spending growth in the near-term,” Bernstein reported. US consumers will have it the worst, Bernstein said.
And the brands are prepping for the hard times: Hermès is lowering the level of demand growth in leather inventories. But, Hermès is keeping it strong. Demand is still exceeding supply for Birkin and Kelly bags, and the French house is also producing ready-to-wear and jewellery to build future growth, according to Bernstein.
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