Consumers Drop by 70 Million in Three Years, Historic Luxury Fashion Brands Face Billions in Lost Profits
Consumers have fallen from 400 million to 330 million, and historic brands are now seeking new strategies to reignite their momentum.
A walk through the famous Quadrilatero della Moda in the heart of Milan and along iconic streets like Via Monte Napoleone, Via Alessandro Manzoni, and Via della Spiga is enough to understand what “haute couture” truly means.
Store windows resembling works of art, renowned fashion houses, sparkling Fashion Weeks, and museums dedicated to the history and art of style—all create an environment where fashion intersects with aesthetics, history, architecture, and culture.
It’s no coincidence that Italy’s fashion capital attracts millions of visitors every year eager to experience the authenticity of Made in Italy firsthand.
Until a few years ago, tourists patiently queuing outside luxury boutiques was common, especially during sales periods. However, the luxury sector has recently seen a declining trend, with the middle class buying less and companies facing a crisis.
Consumers are becoming more selective, paying greater attention to their purchases, and the “arte di vivere” (art of living) is now a rare experience, reserved for a privileged few. In the universe of Milan, which until recently seemed like an endless fashion show, the reality is changing. The city must now adapt to an era where excess and waste have no place, purchasing power is shrinking, and consumer habits are evolving.
The Market Is Changing
According to a report by the Italian newspaper Corriere della Sera, luxury goods consumers have fallen from 400 million to 330 million in just three years, mainly due to pressures on the middle class. This change directly impacts the fashion industry, with more and more brands facing financial difficulties and needing to redefine their strategies.
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A study by consultancy Bain & Company and the Italian luxury brand foundation Altagamma shows that from 2022 to 2025, the number of luxury goods consumers dropped by 70 million.
The reason? As average incomes lose purchasing power, many consumers are buying less frequently or choosing more affordable products. At the same time, spending distribution has shifted: the proportion of “high spenders” in the total luxury market increased from 30% in 2019 to 46–47% in 2025.
As reported, some companies continue to attract high-income groups and therefore not only survive but thrive. Conversely, many mid-tier brands are seeing declining sales and difficulty covering fixed costs. Overall sector profits have fallen significantly, with many companies returning to levels similar to 2009.
Affected Companies
According to the Italian newspaper, the decline in luxury market demand has hit mid-tier brands particularly hard. Some of these companies have turned to the negotiated settlement procedure (CNC)—a preventive resolution mechanism introduced in 2021—to reach agreements with creditors and develop a recovery plan.
Brands such as Pinko and Furla have used this mechanism and now appear to have emerged from the emergency phase.
Recently, Aeffe, which owns brands like Alberta Ferretti, Moschino, and Pollini, filed to activate the CNC procedure for Aeffe and Pollini, requesting protective measures and the appointment of an independent expert to manage the financial crisis they face.
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Versace Sale
For other historic brands, acquisition seems to be the solution. The most notable example is Versace, which Prada is preparing to buy from the American group Capri Holdings.
“It’s a strategic choice; we feel no anxiety,” commented Lorenzo Bertelli, who will take over as Versace’s CEO.
Despite global luxury market challenges, the house remains firmly among the top five international brands and “has revenue much higher than today.”
Similarly, the historic house Trussardi was purchased by the Miroglio family, which integrated it into its industrial ecosystem, regaining momentum. Woolrich, a historic Anglo-Saxon brand recently bought by BasicNet (owned by the Boglione family) for €90 million, has also returned to the hands of an industry dynasty. Even smaller luxury houses, less powerful than the major industry groups, are seeking ownership changes to regain momentum.
This is the case with Valextra, a Milanese company with revenues of around €70 million, owned by the fund Neo Investment Partners. The company has appointed Rothschild as advisor to identify the right buyer.
It is confirmed that the crisis is affecting not only major luxury brands but also the fashion industry in general. Some may be able to withstand it, but affordable luxury and mid-tier companies face significant pressure.
It remains to be seen whether the general public will support them, whether the right strategies will be implemented, and whether these brands will adapt to the new market reality.