Bain & Co has sharply downgraded its luxury market forecast, now projecting a 2-5% decline in worldwide sales for 2025, compared to its previous estimate of 0-4% growth. The consultancy cited “more complex turbulence” including economic pressures and price fatigue in Q1. This follows the sector’s 1% drop in 2024. Major houses including Gucci, Chanel, and Dior have appointed new designers amid the worst industry downturn in years, with China’s property crisis and U.S. economic uncertainty affecting performance. While 75% of luxury shoppers said tariffs wouldn’t affect their purchasing, half of those who reduced spending cited price increases as the reason.