As demand for high-end luxury items wanes, iconic brands are pivoting to broaden their appeal. Companies like Louis Vuitton, Gucci, and Burberry are emphasizing entry-level products like wallets, scarves, and home goods priced under $500. This strategy seeks to attract aspirational middle-class consumers while maintaining their brand identity.

Jonathan Siboni, CEO of Luxurynsight, notes, “Kering and Cartier’s Richemont are bringing perfumes and cosmetics back in-house, while LVMH develops cafes and entertainment.” Luxurynsight's data reveals a shift, with smaller leather goods under €500 increasing in proportion to full-size handbags, reflecting brands' efforts to stay relevant amidst changing consumer priorities.

As luxury leaders tread carefully to preserve exclusivity, profit margins could face pressure due to these adjustments.

Find out more in Japan Times.