Up to 40% of Designer Goods Sold at Knockdown Prices Due to Intense Price Increases

Luxury brands faced a tough 2025 as discounting surged, with up to 40% of goods sold at reduced prices, according to Bain and Altagamma. Margins fell to their lowest in 15 years, excluding the pandemic, as consumers questioned the value of designer products after years of steep price hikes. 

Prices are High, But Sold at 80% Discount

Prices are now 1.5 to 1.7 times higher than in 2019, but fewer “hero products” have emerged to justify the cost. Shoppers increasingly turned to outlets and contemporary labels, while giants like LVMH, Chanel, and Kering cut costs and scaled back operations. Analysts say experiences and emotions, not shopping sprees, now drive luxury growth.