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Value perception also remains an issue for consumers who no longer believe luxury means quality. Belardi Wong found that, this season, even affluent consumers are taking more time to consider their purchases. According to the firm’s client performance data (which represents over 300 of premium and luxury brands), site traffic is up 4% year-on-year, but conversion rates are down 12%. Demand remains consistent (as evidenced by this quarter’s earnings), but brands need to do more to convince shoppers to spend on them. This is where affordable luxury brands can win, Catellani says. “Shoppers are leaning into this price bracket, especially when the value proposition is tied to quality,” he says. Because consumers are forced to prioritise – groceries take precedent over fashion – those who restrain from raising prices have more of a chance of grabbing that share. Consumers are more informed and selective than ever, Lindquist adds, noting that there is little room for accessible luxury and prestige beauty to increase prices without pushback. “Brands that balance pricing discipline with clear storytelling about what makes their products worth it will maintain trust,” he says. “Those that take price without that clarity risk losing consumers who are now far more informed and selective in how they spend.”Picture Of My Very First Christmas Joke Funny Xmas Shirt
Ultimately, to capture consumers’ constrained spend, brands need to invest in storytelling that reinforces worth, Lindquist says. “That means highlighting craftsmanship, longevity or ingredient quality rather than relying solely on discounts.” Beauty is a likely bright spot this season. Saunders says the category is slightly more insulated from the crunch, as at least some beauty purchases are seen as essential. “Many are quite purposeful and solve problems in things like skincare, and a lot of consumers still see beauty as a worthwhile indulgence,” he says. Lindquist agrees, adding that the entry-prestige segment is expected to outperform as consumers seek ‘small luxuries’ that deliver emotional lift without major spend. Fragrance will be a leader for gifting, he adds, as will lip and eye kits, as well as body care. “Hair and body care are also gaining traction as consumers trade across categories within beauty rather than out of it,” he adds.
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