Fragrances and cosmetics drive growth as luxury fashion activations slow in 2025.

A new survey from Luxurynsight indicates a slowdown in fashion brand retail initiatives globally during the first half of 2025. By contrast, the report highlights strong momentum within the fragrances and cosmetics sectors. While fashion activations declined, watches and jewellery held steady in terms of commercial activity. The study analyzed the retail strategies of 25 major international brands, including high-fashion houses like Gucci, Hermès, and Saint Laurent, alongside beauty and accessories brands such as Jo Malone, Burberry, Pucci, and Loewe.

Based on data collected from January to August, Luxurynsight identified 391 retail activations for fashion and leather goods. These activations include store openings, pop-ups, shop-in-shops, and service areas. This figure marks a 9-point decline compared to the first half of 2024. Although China, Europe, and North America maintained stable levels of activity, the report indicates sustained commercial momentum in the APAC region (Asia-Pacific) and the MENA region (Middle East and North Africa).

Conversely, the fragrances and cosmetics sectors experienced significant growth, with activations rising by 13 points to reach 148 initiatives during the period. Similar to fashion, growth in this sector was primarily driven by the APAC and MENA regions. However, the study points to Japan as an outlier, where commercial initiatives for major brands saw a notable decline across both fashion and beauty categories.

The watches and jewellery market generated 91 notable activations over the period, representing a minor contraction of 5 points. Regionally, this sector saw strong growth in Europe and Japan. By contrast, the study reveals a decline in activity within the Chinese, APAC, and MENA markets for watches and jewellery during the period.

When analyzing all sectors combined, China remains the dominant retail market, accounting for 34% of total activations. Europe follows in second place with 20%, ahead of APAC (16%) and North America (10%). For permanent store openings alone, activity is heavily concentrated in China (33%), Europe (20%), APAC (16%), and North America (12%).

In terms of specific brands for permanent store openings, Coach, Loewe, Louis Vuitton, Prada, and Chanel were identified as the most active in fashion. In the beauty segment, Diptyque, Jo Malone, and Acqua di Parma were particularly prominent in opening new permanent locations.

For temporary pop-up store openings, the regional distribution closely mirrored that of permanent boutiques. The cities most targeted for these initiatives included Tokyo, Shanghai, London, New York, and Taiwan. The most active fashion brands in the pop-up space were Dior, Loewe, Louis Vuitton, Prada, and Burberry. In watchmaking, Bulgari, Van Cleef & Arpels, Tiffany, and Cartier were noted as the most prominent brands utilizing pop-up strategies.