As the luxury sector adjusts to a new normal, consumers may find relief in the prospect of moderated price increases for luxury goods in 2024. After years of steep hikes, industry experts predict a shift towards more reasonable pricing strategies.

Jonathan Siboni, founder & CEO of Luxurynsight, suggests that another big reason behind the steep increase in pricing is thebig brands’ push for uniform, international rates.

“If you want to keep prices at a uniform level internationally, you cannot decrease them. You can only level up,” said Siboni, adding that some brands don’t want consumers gambling on exchange rates, taking advantage of pricing discrepancies in various markets, or scouring the globe for deals.

Despite the pricing adjustments, the luxury market remains resilient. Brands like Dior and Cartier are adapting by offering enhanced services and experiences to cater to high-end consumers.

As the industry recalibrates, margins are expected to expand at a slower pace, prompting brands to reconsider their pricing structures and product mix to accommodate a diverse range of customers.

Dive deeper into the evolving landscape of luxury pricing and consumer dynamics by reading the full article on WWD, authored by Samantha Conti.