Shift in Consumer Values and Uniqueness

For years, European luxury brands set the pace in fashion, while American labels were often dismissed as overly commercial and too broadly distributed to compete at the highest end of the market. 

But that balance is shifting. As many European luxury houses struggle with slowing demand, price resistance and creative inconsistency, a group of American brands is seeing renewed momentum. 

On the episode, Diana Pearl joins Sheena Butler-Young and Brian Baskin to unpack what those brands are getting right, and why their recent success may offer a useful playbook for the rest of the industry.

Key Insights:

• Pearl argues that part of the shift comes down to timing. American brands like Coach, Ralph Lauren and Tory Burch went through their overexposure phase years ago and were forced to correct course, while European luxury brands are only now grappling with the consequences of aggressive growth. “European brands maybe got a little cocky,” she says. “They raised prices too much and maybe let the creative slide a little. I think as those businesses have grown, it just became more about sales and less about focusing on the core of the business.” By contrast, American brands “really had to recalibrate, pull back, think about who is our core customer and laser in on that message.”
• Pearl presents Coach as the clearest example of how this American reset has worked. Instead of chasing quick expansion, the brand spent years refining its identity, sharpening its offer and building around a defined consumer. “They want to be that first luxury bag purchase that someone makes when they’re in high school, when they get their first job and save up to buy a nice bag,” she says. That focus shapes everything from product to casting to marketing tone. Just as importantly, Coach stopped cycling through products too quickly. Rather than dropping a hit bag and moving on, “when they see these silhouettes start to pop off, they find ways to iterate them,” Pearl says, pointing to the Tabby and the Brooklyn as examples.

• Pearl says European luxury’s current problems are not just about price, but about value and treatment. Consumers have become more sensitive to whether products feel worth the money and whether the shopping experience feels inviting. “People don’t want to spend their money at a place where they feel like they’re being mistreated,” she says, referring to growing frustration with intimidating store environments, long queues and rigid service hierarchies. She also argues that “cachet can only get you so far,” especially when shoppers no longer feel that the biggest European brands are producing the most desirable or practical items.

• Another theme in Pearl’s reporting is consistency. Several American brands now doing well are still shaped by founder-led or founder-adjacent creative visions, and she suggests that stability matters. “Even if consumers don’t necessarily know that creative directors are changing, they see it in how a brand feels inconsistent from season to season,” she says. With Tory Burch, Ralph Lauren and Khaite, the creative point of view feels legible and sustained. That makes it easier to build a coherent world around the brand and evolve it gradually, rather than asking consumers to reset every few years with a new designer era.

Additional Resources:

• What European Luxury Can Learn From American Fashion | BoF 
• The Great Fashion Reset | How to Fix Luxury’s Trust Issues | BoF 
• The Great Fashion Reset: Can Designer Debuts Revive Luxury? | The Debrief | BoF 

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