With holiday spending expected to dip, consumers are turning to ‘smart luxury’ by prioritising craftsmanship, versatility, and lasting value over flash.
As economic uncertainty shapes this year’s holiday season, a new Deloitte survey shows U.S. spending is expected to fall by 10%. Yet even as budgets tighten, 44% of shoppers still plan to buy luxury gifts, many choosing pre-owned or timeless items that deliver enduring quality.
According to Luxury Fashion Expert Roza Francken of Aurélien, this year’s buyers are embracing a ‘“’smart luxury’”’ mindset. They are seeking lasting quality over status and favouring pieces that emphasize craftsmanship and versatility rather than short-lived trends.
Luxury in a Time of Restraint
After years of indulgent spending and logo-heavy collections, consumers are reassessing what luxury really means. With rising living costs and pervasive economic uncertainty, even high-income shoppers have become more selective. Many are looking for value that extends beyond price tags, seeking products that feel worth the investment over time.
- Inflation and rising costs: With everyday expenses climbing, even affluent shoppers are more cautious about how they spend. Luxury purchases are being weighed more carefully, with buyers looking for pieces that promise durability and timeless appeal.
- Shift in priorities: Flashy logos and statement items are losing traction as consumers favour subtle sophistication. The focus is shifting to versatility, comfort, and materials that age beautifully.
- Selective indulgence: Consumers are still treating themselves, but with more intent. Instead of multiple seasonal buys, they’re choosing a few investment pieces that feel meaningful and enduring.
The Smart Luxury Mindset
As spending habits evolve, a new kind of luxury consumer is emerging. Value-driven buyers are proving that elegance and restraint can coexist.
- The “lipstick effect”: Even in uncertain times, small luxuries hold emotional power. Consumers are indulging in attainable treats such as fine accessories or small leather goods that deliver joy without stretching budgets.
- Secondhand sophistication: Pre-owned luxury is now firmly established in the mainstream. Shoppers are turning to trusted consignment and resale platforms to access premium craftsmanship at lower prices, extending the lifespan of timeless pieces.
- Strategic shopping: Instead of spontaneous purchases, consumers are planning ahead. Many wait for seasonal promotions or buy off-season to maximise value while maintaining quality.
- Needs over novelty: Today’s buyers prioritise functionality and versatility. They invest in neutral tones, classic silhouettes and high-quality materials that transcend seasons and pair effortlessly across wardrobes.
“This season, people are rethinking what it means to give something special. It is less about the price tag and more about thoughtfulness, about finding gifts that last and carry meaning. Luxury gifting has become more intentional, where value comes from the story, the craftsmanship, and the connection behind the piece.
Luxury, when done right, feels personal. A timeless item that is made to endure becomes part of someone’s life rather than just their wardrobe. It might be a beautifully made accessory, a pair of shoes that go with everything, or a piece that feels like it could be passed down. These are the gifts that speak quietly but stay with the person who receives them.
More than ever, shoppers are choosing fewer, better gifts that reflect care and intention. They are moving away from quick purchases and towards meaningful ones that show love, thought, and an appreciation for lasting beauty. For brands, it is a reminder that true elegance does not rely on excess. It endures through craftsmanship, authenticity, and the ability to create pieces that stand the test of time.
– Roza Francken, Luxury Fashion Expert, Aurélien.
