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Though it’s high, this anxiety – about rising price increases for essential items and concern about still-to-come price hikes due to tariffs – is slightly more muted than last year, per BCG, which found smaller net spending reductions in categories including jewelry, clothing and furniture. “The general consumer economy isn’t terrible, so folks are still spending money – even if they are doing it more carefully,” Saunders says. Consumers tend to exhibit resilience during this period, and after a soft fall season, there’ll be pent up demand going into the holidays, adds Polly Wong, president of marketing firm Belardi Wong. BCG managing director and partner Jeff Lindquist calls sentiment “cautious but far from pessimistic”, noting increased comfort in spending on beauty and fashion. “What we are seeing is a more intentional consumer rather than a restrained one: people are planning earlier, comparing prices carefully, yet still choosing to spend on things that feel rewarding.” Brands need to be smart about how they market this season, experts say, for shoppers are willing to spend – but wallets are tight.Riley And Landon Deodorant Matters Equipthepits Shirt
Brands should be wary about raising their prices too steeply, experts caution. Consumers are mindful of tariff-induced price hikes; 81% are concerned about the impact of tariffs on their holiday spending, according to Credit Karma. Across categories, prices are increasing, according to recent data from intelligence platform Competitoor. Affordable luxury handbag prices are up 12%, while luxury handbag prices have increased 7% for the year ended 30 October. CEO Maurizio Catellani puts these increases largely down to tariff-related operating cost increases, and expects that consumers will be more selective as a result. Some suggest that brands should hold off on increasing prices until the new year, so as not to put consumers off during what, for many, is the most important quarter of the year. “Brands that add value can justify some modestly higher prices, but there is still sensitivity as there is a fine balance between a modest price increase and tipping into the territory of being seen as unreasonably priced,” Saunders says. In his view, the fact that luxury prices spiked already gives accessible luxury a little more flexibility in its ability to modestly raise prices, given the consumer reference point is often to look at the relative price to high-end luxury.
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