Luxury brands have retreated back to the safe space of exclusivity, learning new ways to conquer customers during COVID. The only problem is to win and save the next generation of buyers, they should marry their need to remain elusive with the consumer who wants to share everyone on the Internet.
These companies have no time spending. According to Spring Bain & Co, the industry loses speed.
A study published on Thursday shows that the sector value was 1.5 trillion. The euro ($ 1.7 trillion) in 2024, although according to the Q1 2025 in a 3% reduction compared to last year.
Even last year, Personal luxury goods It was one of the categories that noted the most noticeable slowdown, knocking from 369 billion euros in 2023 to 364 billion euros in 2024. This noted the first reduction for 15 years – a noticeable exception of the pandemic.
And the gap between the winners and the losers in the luxury sector is also growing, added authors Claudia D’Arpysio and Federico Levato.
The gap between the upper 75 -Percedil and the lower 25 percentile performer increased 1.5 times in a quarter of 2025 compared to a year earlier, and market leaders continued to pay forward, and the lower 20% to 30% of the sector continued to report on growth decrease.
The part of the problem is that consumers are struggling with what Bain & Co characterizes as a “value equation” – in the bass, whether it is enough – whether it is experience, social and cultural kudo or work – purchases at an increased price they pay?
For a long period luxury brands tried to increase their customer base to be more inclusive, reports d’Arpizio Wealth. It was really intensified in some categories with “entry elements, such as street clothing, sneakers and even beauty – all categories that could be more relevant for young people, but also with people with less discrete costs.”
This “Pra edge” strategy added when the brands are overly relied on a sign or experience, reducing the pace of innovation and thus forcing consumers to doubt If their costs are really worth it.
“So, last year we had a great loss of customers – 50 million customers who buy a luxury product, in particular the younger generation, and a great drop in customer propaganda,” D’Arpizio continued. “What is happening now when brands are trying to fix it and trying to reconsider this relationship with these customers without losing exclusivity.”
EXCLUSION IN THE ONEPOPH
Switching back to exclusivity is more difficult to ask if young consumers are known as social media generation for their inclination to publish online.
There were days of voice without cameras, design rear back number without allowed shots: all this is available on the page for you for the end of the end.
“The luxury has always talked about the demonstration,” the continuation, “d’Arpizio”, which leads the leading Bain & Co for global fashion, “Luxury Foods Vertical”. “The previous generation demonstrated wealth and demonstrated achievements in life, now it is more demonstrating your identity Either your ability to choose your aestheticsYour quality of life.
“There is a great need, in particular, in Gen Z for exchange. This exchange means expressing their personality … but also the desire of compliance. It is two forces that are contrary, but are actually a great driver for luxury consumption because luxury brands can provide this matching, but then in a luxurious brand, mixing and comparing, choosing their style.
It continued: “Social media provided a huge impetus to luxurious consumption, as the potential of sharing with a greater audience created as more clients, but also in increasing their communication strategies, and therefore they have a wider achievement.
“Yes, yes they want to be exclusive, but they know the power of social media.”
