Yahoo Lifestyle The Outside View: Could Luxury Help Lead a Moral Renaissance in the U.S.?
Luxury brands searching for Eldorado as growth stalls in China are looking toward the U.S. — home to the world’s wealthiest and nearly crisis-proof elite.
But navigating the American luxury landscape could prove more complex than breaking into what was once seen as “terra incognita” in China for fashion’s European brands.
More from WWD
White House Dress Code Controversy Didn't Start With Ukraine's President Zelensky or Elon Musk
President Trump Goes Italian and Politicians in Pink: Analyzing Capitol Hill Fashion
That’s because the current luxury crisis goes beyond any economic downturn in China and exposes deeper cracks in the industry’s core promise.
Luxury’s Existential Crisis
In societies where inequality is soaring, materialism increasingly questioned and younger generations prioritize values over status, luxury must be redefined.
Years of relentless price hikes have frustrated consumers, yes, but the real challenge runs deeper: What is the value of luxury today?
The next generation of buyers isn’t chasing status symbols — they’re searching for escapism, belonging, meaning and spirituality. This shift is accelerating in the U.S., where political polarization has turned consumption into a reflection of personal values and identity.
It is a transformation being amplified by demographics.
By 2026, Millennials and Gen Z, who lean toward progressive ideals, will represent 75 percent of luxury buyers.
With the U.S. set to become a majority-minority nation by 2045 and nearly 30 percent of Gen Z identifying as LGBTQIA+ — no matter who is in the White House currently — brands that fail to embrace diversity risk losing cultural relevance and consumer loyalty. Only a sincere and tangible commitment to values can reconcile luxury’s tension between a pure logic of distinction and new consumer ideals.
The Societal Reaction
Consumption is inherently political in the U.S.
A staggering 83 percent of Millennials prefer brands aligned with their values. As government policies on diversity, equity, inclusion and sustainability are rolled back, celebrities are stepping in.
Kendrick Lamar’s Super Bowl halftime show, with Samuel L. Jackson as Uncle Sam and an all-Black dance troupe in red, white and blue, dramatized America’s fragmentation. And when Selena Gomez came to tears condemning the deportation of undocumented immigrants, she sparked national debate.
In a different setting, the 2025 Met Gala’s tribute to Black Dandyism reinforces how high fashion has become a platform for social discourse, especially since the industry is still lacking diversity in creative leadership.
And consumers are also protesting with their wallets.
Tesla shares have dropped significantly, reflecting, in part, worries about a consumer backlash to Elon Musk’s efforts to take a chainsaw to the federal government with the backing of President Donald Trump. Stickers like “Not a fascist supporter, just a Tesla driver” highlight how quickly luxury brands can fall out of favor.
Once a symbol of innovation, Tesla now faces protests and vandalism, driven by Musk’s divisive rhetoric.
A Hush in the Luxury World
While some big businesses and billionaires have sought to forge ties with the Trump world — LVMH Moët Hennessy Louis Vuitton titan Bernard Arnault attended the inauguration — luxury fashion has largely remained silent.
This includes on issues the industry has in the past addressed passionately, like diversity, equity and inclusion.
Meanwhile, beauty retailers like Ulta Beauty, Sephora, Sally Beauty and E.l.f. have reaffirmed their commitments — with Sephora maintaining the Fifteen Percent Pledge, dedicating 15 percent of shelf space to Black-owned brands.
Hispanic consumers now drive 17 percent of beauty spending, while Black Americans account for 12.5 percent, proving that diversity is not just a social issue but a business imperative.
Symbolic gestures are no longer enough in this climate.
Brands must embed their values at the core of their identity. E.l.f., led by an Indian American chairman, boasts a leadership team that is 75 percent women and 40 percent people of color, making diversity integral to its DNA.
Some brands are taking bolder steps.
Jaguar’s rebranding campaign, “Copy Nothing,” embraced inclusivity, high fashion and queer aesthetics, breaking from its conservative roots. Despite alienating some older consumers, the campaign garnered 160 million YouTube views, successfully positioning Jaguar for a younger, progressive market. Ethical audacity, it seems, is essential for reconnecting with the youth.
On the Necessary Moral Elevation of Luxury
Beyond business strategy, embracing diversity and inclusion can reignite creativity and reshape luxury’s cultural relevance.
Pharrell Williams’ leadership at Louis Vuitton epitomizes this evolution. His fusion of Americana, Black culture, Native American influences and Japanese underground style offers a fresh, hybridized perspective, making luxury feel relevant to younger audiences.
That’s more than a creative revival — it’s the kind of moral elevation that can restore luxury’s soul. The scope of ethical responsibility is expanding and now encompasses data privacy, AI ethics, neurodiversity, mental health and intergenerational equity.
For luxury brands, values must become an inherent and consistent part of their identity — to become the core value of future luxury.
The political chaos today is a wake-up call for European luxury brands to make sure they are recognizing cultural diversity as a core value — and a rare chance to be on the right side of history.
Laurence Lim is the founder and managing director of Cherry Blossoms Intercultural Branding, an intercultural branding agency based in Hong Kong and New York City.
Best of WWD
Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
