Luxury as an experience gains momentum

Pictutre Credit: Louis Vuitton

Luxury brands are finding new ways to convince shoppers that their products justify increasingly expensive price tags. From exclusive workshops to museum-style exhibitions, companies such as Tiffany & Co., Chanel and Gucci are opening their doors to reveal the craftsmanship behind their products. The strategy comes as rising prices and changing consumer preferences put pressure on established luxury names.

At a recent event in New York, Tiffany & Co. invited visitors to its Jewelry Innovation & Design workshop, where they could watch artisans work on intricate jewellery pieces using traditional tools, some more than a century old. The experience offered customers a closer look at the time, skill and attention involved in creating luxury products. The workshop was part of LVMH's Les Journées Particulières, an initiative launched in 2011 to showcase the people and processes behind its brands.

The renewed focus on craftsmanship comes as the luxury market faces a challenging period. According to McKinsey, luxury prices increased by an average of 61% between 2019 and 2025. While brands benefited from strong spending during the pandemic, higher prices have pushed some younger and middle-income customers away. LVMH, which owns Tiffany & Co., reported a roughly 5% decline in revenue to $80.8 billion in 2025, marking its second consecutive year of falling revenue.

Other major brands are also investing in experiences to strengthen their connection with customers. Gucci has organised exhibitions highlighting its history, while Chanel established Galerie du 19M to showcase the artistry behind luxury goods. These initiatives aim to make luxury more accessible by allowing consumers to understand what goes into the products they are being asked to pay more for. Industry analysts believe this transparency could help brands rebuild trust, particularly among aspirational buyers who have increasingly turned to smaller, independent labels.

For luxury companies, the challenge is no longer simply selling exclusivity but demonstrating value.

Research suggests that learning about how products are made can increase customers' willingness to purchase them. As competition grows and consumers become more selective, craftsmanship and customer experiences are emerging as important ways for established brands to differentiate themselves. Whether these efforts can bring back price-sensitive shoppers remains to be seen, but the message is clear: luxury brands are realising that a prestigious name alone may no longer be enough to justify the price.