As sales slow, high-end labels invest in storytelling to convince consumers their products are worth the premium.
Luxury brands are raising prices to unprecedented levels—and they’re working harder than ever to explain why. From glossy coffee-table books showcasing artisans in immaculate workshops to viral marketing campaigns dissecting leather stitching techniques, companies like Ferragamo, Tod’s, and Bottega Veneta are emphasizing heritage and craftsmanship to justify eye-watering price tags.
Yet skepticism is growing. The personal luxury goods market reached €363 billion ($415 billion) in 2024, up from €223 billion a decade ago, but growth is slowing. Prices in Europe now sit 52% above 2019 levels, according to HSBC, outpacing any discernible improvement in quality.
“It’s outrageous,” said David Fischer, CEO of youth culture platform Highsnobiety. “The quality hasn’t gotten 52% better. Prices have skyrocketed, and consumers are noticing.” Online forums like Reddit’s Handbags community echo the sentiment, with users calling some markups “wild” and questioning whether luxury purchases still deliver value.
The Craftsmanship Playbook
Facing pushback, brands are leaning into storytelling. Italian label Ferragamo recently partnered with Tanner Leatherstein, a TikTok-famous leather analyst, to deconstruct its €2,400 Hug bag in a sponsored video. The campaign—which earned the bag a rare “perfect 5” rating—exemplifies the industry’s bid to rebuild trust through transparency.
Other tactics include:
Heritage Publishing: Santoni and Tod’s released lavish books chronicling their artisanal legacies.
Cultural Stewardship: Brands like Fendi and Bulgari fund restorations of landmarks (e.g., Rome’s Trevi Fountain).
Celebrity Endorsements: Bottega Veneta’s “Craft Is Our Language” campaign features Julianne Moore and Zadie Smith praising handmade leatherwork.
Cracks in the Facade
The narrative isn’t bulletproof. Last year, Italian authorities investigated Armani and Dior (owned by LVMH) over alleged labor exploitation. Valentino faced similar scrutiny in 2025. While brands denied wrongdoing, the scandals highlighted contradictions between luxury’s glamorous image and supply-chain realities.
Meanwhile, social media has amplified skepticism. Viral TikTok videos from Chinese manufacturers claiming to produce luxury goods “sold as Italian” have muddied perceptions. “Consumers are waking up,” said Audrey Dahmen of TwentyFirstCenturyBrand. “They’re asking why a bag costing €35 to make sells for $2,000.”
A Shifting Landscape
With new creative directors at Chanel, Gucci, and Balenciaga debuting collections this fall, the industry faces added uncertainty. Fischer notes that rapid leadership changes risk alienating loyal customers: “When ‘luxury’ starts feeling gimmicky, trust erodes.”
Yet for brands like Loewe—which awards an annual craft prize and avoids celebrity-laden runways—the focus on tangible artistry may offer a path forward. As Bain’s Claudia D’Arpizio observed, “In an era of inflated prices, luxury must return to what made it meaningful: savoir-faire, not just logos.”
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