Globally recognized luxury brands and major fashion houses are experiencing massive sales declines as most aspiring luxury customers find it difficult to justify their purchases of premium products, with some turning to SH products while others are willing to rent them.
32% of respondents said they purchase luxury items as a status symbol
This conclusion is a signal for the big luxury houses to go back to the basics to identify effective ways to transform themselves, according to the EY Luxury Client Index 2025 study.
The study focuses on the purchase drivers of aspiring luxury customers across five spending segments to help brands manage current market apathy and find effective levers to win back customers.
Half of the respondents would buy SH products
54% of customer respondents would buy a second-hand product directly from a luxury brand. Similarly, 50% would consider renting over purchasing the product, both for convenience reasons and compatibility with specific events, which gives brands the chance for repeat sales and customer loyalty.
Customers are willing to pay for the most valuable experiences
70% of customers (and 47% of consumers spending less than $5,815 per year) say that if a luxury brand doesn't offer them a free experience with the purchase, such as access to new products, store openings or VIP parties, they would still be willing to pay for such an experience. The percentage of those who agreed with this statement is notably higher among Gen Z (79%) and Mainland Chinese customers (84%).
Product quality above all
The study found that the essential feature of luxury products is their exceptional quality, but the status it confers also remains a decisive factor. 71% of customers said they are primarily motivated by the desire to own high-quality products, and 32% said they purchase luxury items as a status symbol.
The study bucks the quiet luxury trend and shows that the existence of a brand label is still a significant attraction for all customers, with 26% of them ranking it in their top five purchasing factors, compared to only 12% who prefer its absence.
Having a high-quality product is more important than exclusivity, celebrity endorsement, customization or even price, the study found. However, luxury customers who aspire to a certain prestige (the high-value purchase segment) (42%) and discerning luxury customers (who regularly make high-value purchases) (34%) are much more status-motivated than other segments. This trend is most pronounced among aspiring luxury customers in mainland China (44%).
Sustainability, including supply chain traceability and transparency, is also a significant factor, closely related to product quality, influencing purchasing decisions. Almost a third of respondents (31%) placed sustainability in the top five factors influencing the purchase, being as important as price (30%). Among the top initiatives driving customers towards sustainability are eco-friendly packaging (53%) and innovative materials (45%), suggesting they increasingly value sustainable innovation and long-term value. Customers in the UK (43%) and mainland China (37%) place the greatest emphasis on sustainability.
The price-quality gap
The study found that the discrepancy between quality and price drives customers away from luxury products. 62% of respondents said they considered purchasing a luxury product in the past year, but decided against it, with price being the main reason. 46% of customers said they would postpone the purchase until they had saved enough to buy the desired product or until the brand offered a discount or the product was sold in an outlet (29% of respondents).
Gen X customers are the most likely to abandon a purchase, citing cost as the reason (38%). More than half of customers in Japan (60%) and the UK (53%) would prefer to delay their purchase. In mainland China, instead of waiting, customers are looking for flexible payment options (50%) and high-quality alternative products such as knockoffs, products that copy the design of a luxury product but without the brand's logo (25%).
Shopping in physical stores remains dominant
For luxury customers, purchasing from brick-and-mortar stores remains the preferred option. 75% of them most recently bought a luxury item in a brick-and-mortar store, despite the rise of omnichannel shopping. However, 33% prefer a combination of visiting physical stores and brands' websites. In markets such as the UAE, omnichannel is the primary method of purchase for 55% of respondents, but satisfaction falls significantly compared to purchasing in brick-and-mortar stores, underscoring the growing importance of an easy omnichannel experience that reflects premium product quality and service exclusivity.
Established luxury customers (the wealthiest segment included in the study) visit brand websites only to access international brands (20%) or to take advantage of a wider range of products (20%). Younger generations prefer online channels: 17% of Gen Z compared to 10% of Baby Boomers. 41% of Gen Z prefer a mix of online and offline channels, compared to 24% of Baby Boomers.
“The exceptional quality of luxury products remains the essential feature that guides consumers, and status continues to be an important factor. In recent years, the resale market for luxury goods has grown significantly, although large luxury brands avoid reselling their own products to maintain exclusivity. Thus, given that luxury does not always translate into high prices, understanding customer expectations becomes essential for luxury brands. They must create personalized and relevant experiences to drive brand loyalty“said Adriana Tabac, director of EY Romania.
