current
Sustained Luxury Demand
Despite economic challenges, demand for luxury goods remains steady, with continued growth expected across various categories.
Timeframe
near-term
Subcategories
Impact areas
Detailed Analysis
The luxury market demonstrates resilience despite economic uncertainties. "6 IN 10 (61%) Luxury shoppers claim they will spend more on Luxury categories in the next 12 months compared to the previous 12 months." This sustained demand is observed across various categories, including fashion, beauty, accessories, and watches/jewelry. While aspirational shoppers also express interest in luxury purchases, their spending power may be more sensitive to economic fluctuations. Luxury brands should focus on building strong connections and long-term loyalty to navigate potential economic headwinds.
Context Signals
Fashion is the most popular luxury category.
Aspirational shoppers represent a potential growth segment.
Economic challenges may impact spending patterns.
Edge
Luxury brands can offer accessible entry-level products or experiences to attract aspirational shoppers.
Focusing on value and long-term customer relationships can mitigate the impact of economic downturns.
