Luxury brands, once considered recession-proof, may not be as immune to economic downturns as previously thought. 

Luxury brands, once considered recession-proof, may not be as immune to economic downturns as previously thought. Recent struggles for companies like Farfetch—which saw a decline in demand and required a last-minute rescue—serve as a cautionary tale for the luxury sector. Between changing consumer preferences, tightening budgets, and the rise of fast fashion brands like SHEIN, there’s uncertainty in the luxury market among young shoppers especially. As luxury brands reevaluate their strategies to make up for it, they’re focusing on selling directly to customers rather than wholesale to retailers and expanding their product offerings—like within video games—to diversify revenue streams. YPulse’s Luxury report shows young people still want to purchase high-quality luxury items when they can afford it, but their budgets and flexible definition of luxury made “dupes” one of the biggest trends in 2023. (Modern Retail)