For the primary time in over a decade—pandemic apart—the non-public luxurious market is experiencing a slowdown in development, in response to the eleventh version of the True-Luxurious International Client Insights report by BCG and Altagamma. The report explores the important thing drivers behind latest shifts within the sector and gives insights into the traits that can form its future.
This yr’s report delivers insights from 7,000+ luxurious customers primarily based on quantitative surveys, focus teams and in-depth interviews. To analyse shopper spending and behavior with optimum focus and accuracy, the report additionally leverages Altrata’s Wealth-X database of greater than 150,000 excessive internet price particular person (HNWI) profiles, plus interviews with business CEOs, executives, consumer advisors, specialists, and companions.
This yr’s True-Luxurious International Client Insights dives deep into the historical past of luxurious, trying again to its roots within the 1800s when it was the area of the really prosperous. Over time, the market expanded into ready-to-wear, magnificence traces, international flagships, social media, and extra, serving to it to scale brilliantly—till now. This democratisation introduced huge development, with aspirational customers finally accounting for over 70 per cent of market quantity. However in a race for scale, a few of the soul of luxurious was misplaced, as a lot of the business traded exclusivity for attain, exchanging stability for volatility.
The non-public luxurious market is stagnating as aspirational customers—as soon as 70 per cent of quantity—minimize spending as a consequence of monetary pressure, with 35 per cent lowering or pausing purchases.
Manufacturers reliant on them are underperforming, whereas these targeted on top-tier shoppers are thriving.
Customers demand personalised, high-touch experiences, worth craftsmanship over mass manufacturing, and search exclusivity.
As a consequence, the phase that beforehand fuelled development is now revealing its fragility: aspirational customers have declined by 13 share factors in market share since 2013 as affordability issues proceed to predominate. Prior to now yr alone, round 35 per cent of those customers both diminished or paused their luxurious spending, diverting it to financial savings and funding, wellness, and second-hand purchases specifically. Round 50 per cent of those prospects now really feel financially weak.
At the moment, manufacturers with a consumer base comprised of greater than 50 per cent aspirational customers are seeing the steepest declines, underperforming sharply over the previous 12 months. Against this, manufacturers which have stayed loyal to core top-tier shoppers aren’t simply weathering the storm—they’re thriving.
Analysis reveals that shoppers interact with as much as 57 manufacturers and obtain 40–60 outreach messages month-to-month, typically missing private relevance, leaving 65 per cent feeling overwhelmed and disengaged. They worth personalised, context-driven interactions over generic outreach. Moreover, 80 per cent desire unique, non-public areas with high-touch service, in search of intimacy over crowded environments. Product excellence issues deeply, with 89 per cent prioritising craftsmanship over mass manufacturing. Furthermore, 70 per cent of potential top-tier shoppers are neglected as a consequence of inflexible segmentation standards.
