Over the past six months, NorthStar Consulting conducted in-depth interviews with more than 700 consumers from AB classes in the UK, Europe and Asia, as well as with industry experts and stakeholders.

We wanted to gauge consumer sentiment towards luxury goods.

The results reveal a split sentiment, with some still valuing traditional luxury for its quality and craftsmanship, while others criticise the modern luxury market for inflated prices, declining quality, and an excessive focus on status symbols.

A Mixed View of Luxury: Diverging Levels of Sentiment

“Many [interviewees] advocate for a more discerning approach to consumption, prioritising quality, craftsmanship, and personal values over brand names and perceived status. This suggests a potential evolution in the definition of luxury, with a greater emphasis on experiences, sustainability, and personal fulfilment.”

Carlos Mosca, CEO and Head of Reputation Management NorthStar

 

Price Inflation vs Quality Decline

Some consumers still appreciate luxury goods for their craftsmanship, design, and quality. However, consumer sentiment is shifting.

Many are now sceptical of luxury trends like inflated prices, declining quality, and an over-focus on status symbols. Instead, they call for a more mindful approach to luxury, focusing on sustainable luxury and real value over brand names.

Our research into luxury goods shows that price inflation and diminishing craftsmanship are major concerns.

Many consumers, in fact, notice a growing gap between rising prices and actual quality, especially with well-established brands. Some feel that certain luxury names are hiking prices while quality declines. This suggests a shift toward profit-driven motives and image, rather than true craftsmanship.

The frustration is clear.

“Does this price reflect a similar increase in quality?”

Consumer, Interview number: NS090

Moreover, many consumers find similar quality from lesser-known brands or independent artisans, often at a much lower cost. They urge others to research alternatives and embrace sustainable luxury.

The focus is now on timeless quality, not just flashy logos.

Status Symbols & Marketing-Driven Value

Western consumers highlighted that many buyers of luxury goods are motivated by the desire to project wealth and social status rather than a genuine appreciation for quality or craftsmanship.

This, in their minds, causes conspicuous consumption and is seen as a key driver of inflated prices in the luxury market.

Luxury goods are increasingly viewed as status symbols rather than products of genuine value.

“[ some buyers ] go into debt just to show off their wealth with branded clothing; I am not buying the same as people that are in debt!”

Consumer, Interview number: NS017

 

Alongside these ideas, there is also a widespread belief that the luxury market relies heavily on marketing to create a perceived value that may not be reflected in the actual product.

This perceived value is often associated with brand prestige, exclusivity, and image, leading some to argue that marketing and advertising persuade people into believing that luxury goods are by definition superior.

The role of marketing in inflating perceived value has drawn scepticism.

Our qualitative analysis reiterated a profound shift in consumers’ attitudes and expectations.

While not explicit, there was enough sentiment indicating that a shift in consumer values is taking place. In particular, younger generations, such as Millennials and Gen Z, are less impressed by traditional status symbols and more interested in ethical sourcing, sustainability, and unique experiences.

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