Brands Adjust Strategies as Consumers Trim Luxury Spending

During one outlet Business on Luxury conference, Nespresso’s U.S. marketing chief Jessica Padula warned that higher gas prices are squeezing consumer budgets, causing a shift from premium coffee makers to more affordable drip brews. She argued that brands should market these cheaper choices as fast, easy, and still luxurious. Meanwhile, Lisa Sequino, who leads Estée Lauder’s makeup brands, observed that shoppers increasingly demand lipsticks that not only look good but also smell and taste pleasant, turning a purchase into a small indulgence.

Sequino referenced Leonard Lauder’s lipstick index, noting that lipstick sales typically climb when the economy slows, as people seek affordable luxuries. Both executives emphasized the need to adapt messaging to a market that is consciously scaling back on high-priced goods while still craving a sense of treat.