Luxury and Fashion Our global industry experts explore the key trends shaping consumer preferences that drive fashion and luxury, using timely insights to stay one step ahead of the latest innovations and business strategies.

The New Luxury Consumer: Experience Over Materialism

2/11/2019
Euromonitor International Profile Picture
Euromonitor International Bio
Share:

The last five years have seen some of the toughest trading conditions for the luxury industry. Demographic changes, currency fluctuations and shifts in consumer expectations are having the biggest impact. Despite these challenges, global sales grew by almost 4 percent in 2018, with a similar growth rate expected for 2019.

The global luxury industry is currently worth more than US$1 trillion, driven by very strong performances in Asia Pacific. Whereas Asia Pacific leads in global sales, China’s luxury goods spending makes up 68% of Asia Pacific sales.

Global Ultra-High-Net-Worth Individuals (UHNWI), High-Net-Worth Individuals (HNWI) and affluent consumers are the top three segments, representing half of world’s wealth. The HNWI market, although small, is an important driver of wealth generation and investment trends. This makes them a highly profitable consumer segment for the luxury goods industry. The US stands out as the country with the highest concentration of HNWI and wealth, making the US unquestionably the most significant high net worth market.

The growing importance of unique and mindful experiences for luxury consumers has been supported by redefined consumer values and healthy living trends. Consumers want more conscious, nutritious alternatives and are willing to pay for products to achieve this. Brands and businesses can appeal to and attract HNWIs by offering opportunities for consumers to indulge in experiences that promise to boost their health and well-being.

In addition to this, luxury brands need to adopt a seamless omnichannel approach to create a better and more convenient shopping experience to meet the ever-changing demands of high net-worth consumers.

To learn more about the strategies to win over the HNWIs, download our white paper, Meeting the Demands of High Net-Worth Individuals.

Shop Our Reports

Sportswear in Western Europe

Sportswear in Western Europe continues to outperform the wider Apparel and Footwear market, but the category needs to evolve to keep its value proposition as…

View Report

Shopper Loyalty: The Evolution of Customer Needs

This report examines how consumers engage with loyalty programmes in a context shaped by disruptive technologies, changing priorities, and shifting…

View Report

Business of Wellness and Longevity: Key Expansion and Growth Levers

As wellness transitions from aspiration to business infrastructure and continues to converge with technology and healthcare, brands are propelled by innovations…

View Report
Passport Our solution covers your every research need, providing context around your business for a deeper market view. Learn More