The New Luxury Equation: Achieving Long-Term Growth in Luxury

For decades, luxury benefited from powerful structural tailwinds: rising global wealth, geographic expansion and a growing aspirational client base. That era is changing.

The personal luxury market is maturing, clients are becoming more selective and there is no obvious next ‘big bet’ to replicate the growth previously provided by geographic expansion and price increases. At the same time, luxury spend is becoming increasingly concentrated: top clients now account for almost 50% of luxury spend, compared with around 30% in 2019.

Luxury is therefore entering a new growth paradigm. Winning will be less about expanding reach and more about earning a greater share of desire and trust from the clients within it.

In The New Luxury Equation, we explore four priorities for luxury brands navigating this changing environment, alongside reflections from industry leaders on what it will take to deliver against them: greater clarity and simplicity, finding the right balance across competing priorities, and maintaining human connection as technology becomes more prevalent.

Download the article to explore The New Luxury Equation and the implications for luxury leadership teams.