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How Quiet and Loud Luxury Relate to Economic Cycles
Decoding the impact of the macroeconomic landscape and consumer sentiment on luxury consumption patterns and brand strategies. An observation.
During the current complex and turbulent marketscape, quiet luxury brands like Brunello Cucinelli and Hermès are thriving. Interestingly, history seems to repeat itself when it comes to luxury consumption patterns across contrasting economic cycles. Let’s explore how and why, and what Hermès is doing differently.
While quiet luxury can be a style preference and a mark of social distinction for the discerning eye, it also reflects the Zeitgeist. In times of macroeconomic turbulence, the shame of wearing ostentatious luxury symbols (known as luxury shame; Wang, 2024) seems to increase and calls for more quiet luxury codes. This phenomenon was already present during the Great Recession from 2007 to 2009, when the pendulum swung toward a more discreet expression of luxury (Passariello, 2009; Williams, 2008). During such times, wearing logomania and expressive luxury products increasingly misaligns with the prevailing consumer sentiment (Boncompagni, 2012). First, given the context, affluent clients may find it inappropriate to wear recognizable and expressive styles, making them more inclined to invest in experiential and subtle forms of luxury–such as well-being or (hidden) connoisseur brands. Second, disposable income is more limited for aspirants and certain client groups who would have opted for more visible luxury consumption. Generally, the context of culture and geographical luxury epicenters (e.g., Dubai, Monaco) needs to be considered–along with other overarching macro-level factors like economics and politics.
However, generally, when the macroeconomic situation stabilizes, consumption shifts toward louder expressions in public with a more visible signaling effect, which could be called luxury flaunting (see figure 1). This shift can manifest in different style expressions in the product portfolio like more flashy colors, extravagant styles and patterns, and more logo (like Alessandro Michele introduced Gucci’s maximalist aesthetic), and is known as loud luxury or conspicuous consumption. This does not only apply to luxury brands that are per se more loud like Louis Vuitton, but also applies to the degree of loudness for more quiet luxury brands. Furthermore, loud luxury often serves as a means of signaling status, a deep-rooted ancestral motive, wherefore entry-level products (that often ostentatiously feature a logo–like the Heure H from Hermès) are especially sought after by aspiring luxury clients. In times of stability or growth, more disposable income is available–especially for the aspiring and entry-level luxury clients, which is often expressed in luxury indulgence via products. Furthermore, after times of minimalism, the wish for colorful expression rises.
Figure 1: The luxury economic cycles related to quiet and loud luxury. A simplified illustration.
What also needs to be taken into consideration in this new context is first, the emergence of dupes, such as the Wirkin–a look-alike Birkin Bag sold by Walmart in December 2024 for only a two-digit price tag. On the one hand, this phenomenon shows the appeal of iconic luxury brands and the desire of many to buy into that feeling and lifestyle. On the other hand, it also reflects the growing unattainability (and sometimes unattractiveness) of these items due to constantly rising prices for luxury products. Second, social media has given rise to recognizable, iconic luxury shapes like the Alhambra collection by Van Cleef & Arpels, the Saint Louis tote by Goyard, and the Kelly and Birkin bags by Hermès. These former symbols of old money have transformed into loud luxury items. Not only have they become somewhat ubiquitous due to dupe culture, but they have also become increasingly unattractive to their former core clients, who prefer hidden luxury brands (cf. Snob effect), which focus on core luxury principles like craftsmanship, aesthetic design, and quality.
While quiet luxury opens the avenue and desire for duplicates, craftsmanship and creativity cannot be faked. Ultimately, it comes down to being a connoisseur as a client and following a connoisseurship strategy as a brand. This is what Hermès, as an independently owned brand, can rely on and what proves to be their formula for success: the highest quality, affluent (and loyal) clients, timeless designs that align with core values, and long-term investment in the brand, employees, and clients (Hermès, 2025). Additionally, Hermès never embraced full logomania, has always stayed true to its brand essence, and adjusted their brand expression and codes to the prevalent times, always going with the time without falling out of it.
So, what can you take from this article? While fashion comes in cycles, luxury does too. As a luxury client, reflect on your purchasing and styling behavior, and utilize this article to better understand your actions and shop more consciously. Does it fit the Zeitgeist? And even more–does it fit your personality? If so, why?
As a brand, stay true to your core despite economic cycles, and avoid offsetting your clients with actions that do not align with the current sentiment or your brand DNA. Luxury brand management is always a balancing act, best done when understanding the underlying rationales and applying a suitable diversification of the brand codes.
Written by: Dr. Julia Riedmeier
Published: February, 19, 2025
References
Boncompagni, T. (2012, February 7). An Hermès Bag Gallops to the Fore. The New York Times. https://www.nytimes.com/2012/02/09/fashion/the-hermes-evelyne-bag-surges-in-popularity.html.
Hermès (2025, February 14). 2024 Full-Year Results. https://assets-finance.hermes.com/s3fs-public/node/pdf_file/2025-02/1739475049/hermes_20250214_pr_2024fullyearresults_va.pdf?VersionId=qQriZY_1BlBwpp2OmhmriU1k0MRVbUjd.
Passariello, C. (2009, October 30). Fighting Back Against Shoppers’ Guilt. The Wall Street Journal. https://www.wsj.com/articles/SB10001424052748704597704574487342734060448.
Wang, J. (2024, August 26). How ‘luxury shame’ will shape sales in China for the rest of 2024. Vogue Business. https://www.voguebusiness.com/story/consumers/how-luxury-shame-will-shape-sales-in-china-for-the-rest-of-2024.
Williams, A. (2008, November 16). Conspicuous consumption goes out of style. The New
York Times. https://www.nytimes.com/2008/11/16/style/16iht-16consumption.17856408.html.
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