The State of Fashion - Luxury Report: Connecting to the Luxury Eyewear Sector

The past half-decade has seen the global luxury industry achieve remarkable growth, with personal luxury goods expanding at a compound annual growth rate (CAGR) of 5% from 2019 to 20231. 

Entering 2025, the luxury sector is experiencing a slowdown that is expected to continue past 2027, influenced by economic challenges and changing consumer preferences, as detailed in the State of Fashion: Luxury report by McKinsey & Company and The Business of Fashion. 

These macroeconomic challenges are not unknown to the luxury eyewear segment, however, after years of explosive growth, it may seem like a hard pill to swallow. Luxury eyewear must adapt to thrive.

Background On “The State of Fashion - Luxury” Report

The luxury market’s growth was driven primarily by price increases, which accounted for 80% of gains, rather than volume. Iconic leather goods and fine jewelry led this trend, with China driving 40% of global growth.

However, overexposure and weakened exclusivity have affected luxury brand desirability. 

Economic Outlook and Market Realities

Luxury market growth is forecasted to slow to 1% to 3% annually from 2024 to 2027. The U.S. shows promise with rising disposable incomes and a growing ultra-high-net-worth individual (UHNWI) population.

Sustainability and ethics are continuing concerns, with reports of labor exploitation and environmental harm having undermined trust in key growth audience segments, resulting in a stronger demand for responsible consumerism. 

Technology and Digital Integration

Omnichannel retail—where 80% of luxury sales are digitally influenced—is crucial. Brands should consider investing in immersive e-commerce platforms and AI-driven personalization. Seamless online-to-offline experiences and virtual consultations will enhance customer interactions without compromising luxury’s personalized essence.

Luxury’s Value Proposition Has Been Lost

The perception of exclusivity is the promise that luxury has lost. Naturally, high-net-worth individuals (HNWI) and UHNWI are looking to invest into products they perceive only they can have. 80% of UHNWI state they want to discover new, niche brands that can continue to drive this exclusive appeal.

Combining this promise with brand experiences is a critical juncture, as brands must build capabilities and evolve their operating to appease both new and long-term clients. 80% of HNWI are even expected to shift part of their spending to exclusive experiences. What’s worse, 36% of luxury customers have expressed that in-store experiences have worsened - a direct offense to what the consumer is demanding.

Five Strategic Imperatives for the Luxury Sector

While evaluating both consumer and brand market research, the teams at The Business of Fashion and McKinsey & Company have pulled together these 5 core strategic insights on what luxury brands should focus on in the coming years.

1. Strategic Reset: Brands must refine core values and differentiate their offerings. Clear brand storytelling and experiential retail can enhance perceived value.

2. Product Excellence: Investment in iconic designs that balance heritage and innovation is essential. Vertical integration—controlling supply chains—ensures superior quality.

3. Customer Engagement: Younger consumers prioritize experiences over possessions. Creating bespoke in-store, or rather in-practice, experiences will deepen brand loyalty.

4. Bridging the Talent Gap: Attracting creative and technical expertise is vital. Data-driven customer insights can refine personalization and acquisition strategies, enhancing engagement and retention.

5. Futureproofing Portfolios: Diversifying into adjacencies broadens revenue streams, while the curation of limited collections and collaborations fuels immediate revenue goals.

   
   

Connection to the Luxury Eyewear Market

While Kering is a directly reported party of interest within the report, these insights can be synthesized and diffused within the entire luxury eyewear market. Brands must shift focus to offering their clients - i.e. Optometrists, Opticians, Optical Practice Owners - as well as consumers experiences that are unique to the brand’s identity.

Consumer shifts in discretionary spending will directly impact the multi-purchase appeal and upselling opportunities. Brands will need to keep this in mind as they continue exploring ways to differentiate.

Finally, pricing strategies need to be adjusted to accommodate inflationary pressures. 2019 - 2023 saw rapid growth fueled by increases in prices, with some luxury brands showing 50% to 100% increases in price. Entering 2025, customers don’t feel prices are justified by the quality or innovation that brands continue to taunt, with 41% of social media luxury conversations expressing frustrations over poor quality.

US Forecast to Be Luxury’s Growth Engine

Due to favorable economic conditions, the luxury sector is expected to exceed global growth, with the US forecast at 4% to 6%. This becomes a key growth driver for luxury eyewear brands as they seek pockets of revenue. With the highest forecast increase in HNWI and UHNWI across the globe, 5% annually now through 2028, the US must be a focus market.

This growth is coupled with a new audience appetite: the aspirational luxurist. The middle-class individual’s focus on discretionary spend has shifted. With decreasing economic uncertainty in the US post-election, coupled with decreased inflation, the middle-class is looking forward to investing in the luxury market.

Volume Increases with Quality Drive Growth

Consolidation and innovation of manufacturing processes during the 2019 to 2023 was step 1. Step 2 is increasing the quality of the product to match the innovation and consolidation efforts.

Step 2 is the focus for 2025. It’s imperative that brands ensure the quality of their products and boast this message in their marketing. Volume increases will work to ensure growth for brands, but do not sacrifice quality for volume.

Responsible consumerism has also taken hold of individuals, with buyers wanting to be ethically and morally conscious not only in purchase, but in the processes of the brands they are purchasing. Greenwashing of environmental consciousness will no longer be tolerated.

Approaching the Luxury Slowdown for Luxury Eyewear

Now is the time to sharpen your core proposition, invest in new experiences, and explore differentiated avenues of opportunity.

Put a renewed emphasis on product excellence, focusing on artisanal craftsmanship and improved quality. Remember quantity is key in 2025, but standards cannot falter. Consider your manufacturing practices as well; do they align with your sustainable vision? 56% of US luxury consumers demand it.

Optical practice owners, Optometrists, and Opticians are humans; they make purchasing decisions just like consumers. These are luxury eyewear’s consumers, and the same old events and experiences won’t cut it. Consider investing into new shows such as The Frame Affair that allow you to explore ways to position your brand differently while maintaining your core proposition. 

Portfolio diversification will position your brand for the long-term, crafting a community of loyalists with increased lifetime value (LTV). This could mean new products or venturing into adjacent industries. Look for the nuggets of opportunity and put a strategy to capitalize on them.

Revisited: Five Strategic Imperatives for Luxury Eyewear

Now is the time to take bold risks, rebuild connections with clients and invest in the critical areas of your business — even if the returns may not be immediate. 

1. Strategic Reset: Think about how you're communicating your brand story and the purchase path. Augment to include both online and offline activations that provide a better value for your customers.

2. Product Excellence: Maintain the quality of your eyewear while focusing on volume maximization. Almost half of all luxury buyers have noticed quality decreases from major brands. Do not follow this trend.

3. Customer Engagement: Think of where and how you’re engaging your end customer. The same events and experiences don’t bring the excitement and collaborative atmosphere clients demand. Invest in bespoke experiences such as The Frame Affair that will excite your clients and deepen brand loyalty.

4. Bridging the Talent Gap: It’s time to understand your data and begin pulling behavioral insights to understand what your clients want. Then utilize that data as a way to attract exceptional expertise.

5. Futureproofing Portfolios: Define immediate revenue goals and focus on how  collaborations, limited editions, and new collections can fuel this. Simultaneously, diversify your portfolio into adjacent products, offerings, and event industries.

The global luxury market stands at a pivotal crossroads. After 5 years of rapid expansion and incredible growth, the luxury market is facing a severe slowdown.

For luxury eyewear, aligning with the five strategic imperatives—strategic reset, product excellence, customer engagement, talent optimization, and portfolio diversification—is essential to sustaining growth and facing the slowdown head-on. 

Brands must prioritize craftsmanship, personalized experiences, and ethical practices to meet evolving consumer demands. The U.S. market, projected to grow between 4% and 6% through 2027, offers significant opportunities, particularly as the aspirational middle-class consumer base expands. 

By embracing technological advancements and enhancing their value propositions, luxury eyewear brands can navigate market complexities, maintain exclusivity, and drive long-term success.

About The Frame Affair Luxury Eyewear Show

The Frame Affair, March 13-15, 2025 in NYC, is the quintessential premium, luxury, and ultra-luxury eyewear show, elevating the industry by creating a space where independent designers and visionary artisans converge to showcase the finest in eyewear craftsmanship. Experience the peak of excellence as guests enjoy immersive storytelling, new activations such as the Art Gallery and Luxury Fashion Show, and connect with brands as they take you on a journey ripe with passion.