Luxury is changing—in generations and in geographies

Millennials and Gen Z’ers were responsible for all the luxury market’s growth in 2022, buying everything from Gucci sneakers to Canada Goose puffer jackets.

Beyond China—Asia is becoming wealthier and new worlds of luxury are on the map (looking at you India). The very definition of luxury is increasingly nuanced. And the reliance on technology is deepening in view of the Web3 era.

Every year, January brings a long list of must-reads that perhaps shine brighter than the new year’s resolutions: luxury trends for the year ahead. Many of us are hoping to gain some insights into the future of luxury in a rapidly changing world. And if the global search trends are anything to go by, it is clear that many of us are thinking more deeply about what we truly value in our lives, including the brands we shop from.

Luxury is constantly evolving—in geographies and in generations. Younger and younger luxury consumers continue to rewrite the industry rulebook. New worlds of luxury are on the map. The very definition of luxury is increasingly nuanced. And the reliance on technology is deepening in view of the Web3 era. Luxury has once again proven its resilience driven particularly by Luxury Personal Goods.

French luxury group LMVH—which owns 75 major brands across wines and spirits, fashion and leather, perfumes and cosmetics, watches and jewelry, and selective retailing—recorded 20% growth in revenue in the first 9 months of 2022 vs 2021. [2]

And this wasn’t just the case for the largest luxury groups. 95% of luxury brands enjoyed a positive compound annual growth rate in 2022.

And this wasn’t just the case for the largest luxury groups. 95% of luxury brands enjoyed a positive compound annual growth rate in 2022. And despite economic headwinds and global recession fears, the luxury industry is set to grow—albeit more slowly—in 2023 as wealthy shoppers continue to travel and spend. 

The luxury futurescape is far from smooth sailing, however, with a new wave of consciousness, changes, and challenges. We believe Betterment in the Youniverse will be one of the key themes in 2023 and beyond. Affluent consumers are increasingly pursuing positive changes in their lives and are expecting luxury brands to do better—by the people and by the planet. So, luxury brands will need to continue to redefine themselves as elevated enablers of social change in order to remain relevant.

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Source: Luxe Digital, Jan 2023