How can European luxury brands capitalize on America's wealth?

While China and Europe suffer from crises, fashion houses are changing the map: Dior, Gucci and Moncler are opening stores in Texas and Arizona to sell bags for $10,000 to programmers and investors from Silicon Valley. Why “American upstarts” became the main hope of LVMH and Hermès is in the material.

European fashion houses have changed course, writes xrust. While tourists from China are saving money, and the Middle East is rocked by the war with Iran (which began at the end of February this year), the most expensive boutiques on the planet are moving to the outback of the United States. Their target is freshly minted billionaires from the world of artificial intelligence.

According to Savills, North America accounted for 27% of all new luxury stores in the world in 2025. For the first time on record (since 2016), the region overtook Europe (26%) and China (19%). Why? The answer is simple: in the United States there are fewer boutiques per super-rich consumer than in the Middle Kingdom. Savills' Todd Siegel calls the market «virgin land.»

The geography is expanding beyond Manhattan and Beverly Hills. Hermès opened in Nashville, Tennessee, and Scottsdale, Arizona, last year. This summer — the Chicago suburb of Wilmette, and in September — Brooklyn Williamsburg. Moncler has already entered the Aspen ski resort, and will next launch the world's largest flagship on Fifth Avenue in New York, as well as locations in Dallas and California's Valley Fair.

Why the USA? Marcus Morris-Eyton from AllianceBernstein explains: the American premium consumer has proven to be more resilient than the European one. Salaries are rising, and the AI ​​boom is creating a new wave of wealthy people who don’t mind €10 thousand for a bag. Dior and Gucci have already shown cruise collections in the States, Zegna will present the summer 2027 line in Los Angeles on June 5.

The numbers confirm the shift. Richemont (Cartier) reported its 18th first-quarter sales growth in the Americas, its ninth consecutive double-digit quarter. American Ralph Lauren and Tapestry (Coach) are also ahead of their competitors. “Our core customers are loyal and do not change their habits even in turbulent times,” said a top manager at Ralph Lauren.

However, analysts warn: you won’t be satisfied with the United States alone. Americans account for only 20-22% of global luxury spending. For a full recovery of the industry, China is needed, which is still stalled due to deflation and the real estate crisis. But now luxury brands are playing by the rules of a “two-speed world”: the United States and parts of Asia are growing, while Europe and the Middle East are suffering losses. And no one will cancel the hunt for AI millionaires from Silicon Valley.

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Xrust How can luxury brands in Europe make money on rich America?