This Week's Obsessions: What's Next for Luxury Brands?

In 2025, the luxury goods sector faces a confluence of challenges that are reshaping the industry landscape. From negative publicity and geopolitical tensions to shifting consumer behaviours, iconic brands like Gucci, Louis Vuitton, and Hermès are navigating turbulent waters.

Negative Publicity and Ethical Concerns

Luxury brands have traditionally thrived on exclusivity and impeccable reputations. However, recent controversies—ranging from questionable advertising campaigns to environmental and labour concerns—have tarnished some of these images. For instance, Balenciaga faced backlash over its advertising content, while Gucci grappled with criticisms regarding its environmental impact. Such incidents have led consumers to question the ethical foundations of their favourite luxury labels.

Economic Pressures and Tariff Implications

The lingering effects of trade policies, particularly the tariffs introduced during the Trump administration, continue to impact the luxury sector. These tariffs have increased production costs and disrupted supply chains, prompting brands to reconsider their manufacturing and pricing strategies. The added financial strain has made it challenging for luxury houses to maintain their traditional profit margins without passing costs onto consumers.

Consumer Behaviour: A Shift Towards Conscious Consumption

Modern consumers, especially Millennials and Gen Z, are increasingly prioritising sustainability, transparency, and ethical practices. This shift has led to a decline in traditional luxury purchases, with many opting for second-hand items, rental services, or co-ownership models. Platforms like More Luxury Club cater to this new demand, offering shared access to luxury goods without the associated ethical and financial concerns.

Earnings Reports: A Glimpse into the Industry's Health

Recent financial disclosures from major luxury conglomerates highlight the sector's current challenges:

Kering: In Q1 2025, Kering reported a 14% decline in revenue, with its flagship brand Gucci experiencing a 25% drop in sales. The downturn is attributed to waning consumer interest and intensified competition.
LVMH: The conglomerate saw a 3% decrease in organic revenue in Q1 2025, with its fashion and leather goods division down by 5%. Economic uncertainties and reduced consumer spending, particularly in Asia, contributed to this decline.
Hermès: While Hermès reported a 7% year-on-year revenue growth in Q1 2025, this marked a slowdown compared to previous quarters. The brand's resilience is attributed to its commitment to quality and vertical integration.

The Rise of Transparency: TikTok Exposés

Adding to the industry's challenges, factory workers and insiders, particularly from Chinese manufacturing hubs, have taken to platforms like TikTok to share behind-the-scenes looks at luxury goods production. These videos has ignited debate over the origins of luxury handbags, with Chinese manufacturers claiming that high-end brands like Gucci, Prada, Louis Vuitton, and Dior produce a significant portion of their bags in China. These videos suggest that while final touches and branding may occur in Europe, much of the manufacturing process is outsourced to Chinese factories. Industry experts acknowledge that while components and initial assembly might take place in Asia, final assembly and quality control are often completed in Europe to meet "Made in Italy" or "Made in France" labeling standards. This revelation has prompted consumers to question the authenticity and pricing of luxury goods, highlighting the complexities of global supply chains and the importance of transparency in the fashion industry. (Are designer bags actually made in China?)

The Rise of Sustainable and Responsible Luxury

In response to shifting consumer attitudes, many forward-thinking luxury brands are embracing transparency, ethical sourcing, and sustainability as fundamental components of their business models—not merely as marketing tactics. These brands recognise that today’s consumers demand more than just prestige; they seek integrity, authenticity, and genuine accountability.

Stella McCartney remains a pioneer in ethical luxury, consistently advocating for cruelty-free production, sustainable materials, and responsible practices throughout its supply chain. The brand famously avoids using leather or fur, instead championing innovative, eco-friendly alternatives such as mushroom-based leather and recycled fabrics. McCartney’s transparent approach, detailing its processes and impacts openly, continues to earn trust and loyalty from conscious consumers.

Similarly, Gabriela Hearst has built its reputation around impeccable craftsmanship paired with sustainability and transparency. Known for setting ambitious environmental targets, Gabriela Hearst incorporates recycled and responsibly sourced materials into collections, prioritises low-impact production methods, and actively collaborates with NGOs and artisans to ensure ethical working conditions. The brand’s transparent communication around its sourcing, processes, and progress makes it a leader in sustainable luxury fashion.

The Row, renowned for minimalist elegance and exceptional quality, also aligns quietly with ethical luxury through its commitment to responsible sourcing and craftsmanship. Rather than emphasising explicit branding, The Row’s quiet luxury approach inherently promotes sustainable values through timeless designs, reduced waste, and a deliberate resistance to fleeting trends. Its careful selection of materials and trusted artisanal partners ensures each item is ethically produced and designed for longevity.

Other luxury labels making significant strides include Chloé, which became the first luxury brand to achieve B Corp certification, reflecting high standards of social and environmental performance. Likewise, Patagonia, although primarily known as an outdoor apparel brand, has deeply influenced luxury fashion by exemplifying how profitability and sustainability can coexist through total transparency, ethical sourcing, and environmental activism.

These brands are redefining what luxury means by placing equal importance on values and aesthetics. Their commitment to honesty, ethical standards, and transparent operations resonates powerfully with consumers who increasingly want their purchases to reflect their personal values and contribute positively to the world.

At More Luxury Club, we proudly support this transformative approach to luxury, emphasising sustainability, transparency, and authenticity—values that align perfectly with our mission to create a responsible, circular economy for luxury goods.

Looking Ahead: Adapting to a New Luxury Landscape

The luxury industry's future hinges on its ability to adapt to these multifaceted challenges. Brands must prioritise ethical practices, transparency, and sustainability to regain consumer trust. Embracing innovative models like co-ownership and resale can also cater to the evolving preferences of modern consumers.

At More Luxury Club, we champion a more conscious approach to luxury, offering members the opportunity to enjoy premium goods responsibly. By staying attuned to industry shifts and consumer values, we aim to redefine what luxury means in today's world.

More Luxury - Buy better, Pay less

Designer Spotlight - Why Gabriela Hearst is on our Designer Radar and Why She Should be on Yours.

In a world of fleeting trends and fast fashion, Gabriela Hearst stands apart—blending sustainable values with timeless design to create luxury handbags that are as refined as they are responsible. Since launching her eponymous label in 2015, Hearst has redefined modern elegance, crafting pieces that are built to last, made to be loved, and designed to be passed down.

Her handbags aren’t just accessories—they’re heirlooms in the making.

Heirloom-Quality Craftsmanship

Gabriela Hearst’s handbags are known for their structured silhouettes, rich materials, and a meticulous attention to detail that echoes the artisanal traditions of old-world luxury. Each piece is handcrafted in Italy using responsibly sourced materials—often vegetable-tanned leather, repurposed deadstock fabrics, or upcycled elements from previous collections.

The result? A collection of bags that’s quietly powerful, deeply elegant, and unashamedly sustainable.

The It Bags: Nina and Demi

At the heart of Hearst’s success are her signature pieces: the Nina and Demi bags.

The Nina Bag (below in Gold), named after activist and singer Nina Simone, debuted in 2016 and became an instant cult favourite. With its distinctive top handle and gathered structure, it merges architectural flair with vintage inspiration. The Demi, its smaller sister, offers the same sculptural aesthetic in a more compact form—perfect for day-to-night elegance.

Both have been spotted on royals, celebrities, and tastemakers, and regularly appear on resale sites with high retention value—proving that style and sustainability can be a powerful pairing.

A Personal Passion: Vintage Handbags and Sustainability

Hearst’s passion for handbags goes beyond her own label—she’s a lifelong vintage collector herself. Her deep knowledge of archival design informs every piece she creates. From subtle nods to mid-century silhouettes to the luxurious simplicity of 1970s accessories, her aesthetic always whispers, never shouts.

This vintage sensibility is more than just stylistic—it’s a philosophy. Hearst believes in investing in pieces that last, that tell a story, and that hold emotional as well as financial value. Her designs are intended to be treasured—and eventually passed on. The photo above is a one-of-a-kind vintage bag, click the photo to learn more.

Why Gabriela Hearst Belongs in Your Collection

For members of More Luxury Club, Gabriela Hearst’s handbags represent everything we stand for: thoughtful design, enduring value, and responsible luxury. Whether you’re drawn to her sculptural silhouettes, her ethical ethos, or her vintage flair, her bags are the kind you co-own with pride—and wear with purpose.

Would you like to co-own a Gabriela Hearst handbag? Vote for your favourite on our Fab5 page and shape next month’s collection.

Love It or 'Hate' It - The Bottega Veneta Ciao Ciao

Bottega Veneta has done it again—launching a bag that’s equal parts bold, minimalist, and just weird enough to become a cult favourite. The Ciao Ciao is here, and it’s already dividing fashion fans like a zip on a pouch. Is it an Italian dream of soft structure and quiet luxury… or does it look a little too much like your chicest dopp kit?

Let’s unpack it—pun intended.

Why People Love It

The Ciao Ciao is Bottega at its best: sumptuous leather, a clean, architectural shape, and just the right amount of logo-free mystery. With its dual-zip top (the reason for the name) and signature Intrecciato weave or smooth finishes, it whispers “I know fashion” to those in the know.

It’s also ultra-wearable—perfectly sized to carry your essentials without bulking up your silhouette. Think: quiet luxury with an edge, ideal for those who want the look of effortlessness without sacrificing design detail.

And let’s be honest: saying “Ciao Ciao” as you sling your bag over your shoulder feels deeply satisfying.

Why It Might Not Be Your Bag (Literally)

Of course, some are less than charmed. Critics argue that the double-zip opening is aesthetically interesting but fiddly in practice, especially when you’re in a rush. Others say the shape veers dangerously close to “upscale toiletries pouch”—the kind of thing you'd see in a very glamorous airport lounge, not necessarily an everyday fashion staple.

And while minimalism is the point, some shoppers want a little more personality, especially from a bag with Bottega’s price tag.

Verdict: Bellissima or Baffling?

The Ciao Ciao Bag is undoubtedly chic, but it sits in that love-it-or-leave-it lane where the best Bottega pieces tend to live. If you're a fan of clever design, artisanal leather, and a dash of under-the-radar luxe, it might just become your new favourite. But if you like your bags with a bit more flash (or just a single zipper), this one might leave you waving ciao before checkout. If we were going to invest, we would prefer the Andiamo to the Ciao Ciao, but that's just our PoV. Again, this is what makes More Luxury Club such genius for bag lovers.

Co-owning a bold style like this is the perfect way to experiment—without committing to a full-time relationship.

Would you co-own the Bottega Veneta Ciao Ciao?

Whats App us and let us know.