What's happened
U.S. credit card spending on luxury goods has declined in early 2025, with a notable drop in categories like handbags. However, luxury jewelry and watches have seen increased sales, driven by consumer perceptions of value and rising gold prices. Mark Zuckerberg's evolving fashion choices reflect this trend, showcasing high-end timepieces and accessories.
What's behind the headline?
Shifting Consumer Preferences
- Luxury Jewelry and Watches: Despite a general decline in luxury spending, jewelry sales rose over 10% in May 2025 compared to the previous year. This suggests consumers are prioritizing items they view as long-term investments.
- Economic Influences: Rising gold prices and tariffs on imports may be influencing purchasing decisions. As noted by Citi analyst Thomas Chauvet, jewelry offers intrinsic and emotional value, making it a preferred choice for consumers with disposable income.
- Cultural Shifts: Mark Zuckerberg's transition from casual attire to luxury fashion highlights a broader cultural shift among tech executives. His choice of high-end watches signals a growing acceptance of luxury in the tech industry, aligning with consumer trends towards investment pieces.
- Market Outlook: The luxury market may continue to see polarization, with certain segments thriving while others struggle. Brands that adapt to consumer perceptions of value and investment potential will likely perform better in the current economic climate.
What the papers say
According to The Independent, U.S. credit card spending on luxury goods has dropped, but luxury jewelry sales have increased significantly, with a 10% rise in May 2025 compared to the previous year. CNBC highlights that consumers are viewing jewelry as a long-term investment, a sentiment echoed by Citi analyst Thomas Chauvet. Meanwhile, Business Insider UK discusses Mark Zuckerberg's shift in fashion, showcasing luxury watches and accessories, indicating a trend among tech leaders towards embracing high-end fashion. The South China Morning Post notes the appeal of unique timepieces, such as jump-hour watches, which cater to collectors seeking distinct craftsmanship. This reflects a broader trend in luxury where consumers are drawn to items that offer both aesthetic and intrinsic value.
How we got here
The luxury market has faced challenges in 2025, with overall spending down due to economic factors and tariffs. However, specific segments like jewelry and watches have bucked the trend, indicating a shift in consumer preferences towards items perceived as investments.
Go deeper
- What are the latest trends in luxury jewelry?
- How are tariffs affecting luxury spending?
- What does Zuckerberg's style shift mean for tech fashion?
Common question
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How has Mark Zuckerberg's fashion evolved over the years?
Mark Zuckerberg, the co-founder of Facebook, has undergone a remarkable transformation in his fashion choices. Once synonymous with casual hoodies and jeans, his recent shift towards luxury fashion raises questions about his evolving public persona and the implications of these changes in the tech industry. Below, we explore the nuances of Zuckerberg's style evolution and what it signifies.
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What is Causing the US Dollar's Decline and How is it Impacting Luxury Spending?
The US dollar is facing significant challenges, marking its worst performance in decades. This decline is not just a financial statistic; it has real implications for consumer behavior, particularly in the luxury goods market. As the dollar weakens, how are consumers adjusting their spending habits? Below, we explore the factors behind the dollar's decline and its effects on luxury spending.
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