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Luxury Transformed: Adapting to Wealth Shifts and Generational Change
 

The bar for entry for those belonging to the luxury consumer market is swiftly increasing from millionaire to multi-millionaire with the amount of zeroes added to a purchase following suit. In fact, Ultra Rich families, with wealth valued at almost $50trn USD in 2023, are predicated by the Knight Frank Wealth Report to increase 30% in number by 2030. Added to this is an exploding global Middle Class who are newly accessing the lower end of the luxury market.

The blurring of the dividing line between luxury and mass market, forces the sector to re-position to retain premium desirability whilst continuing to deliver for those moving into the category at entry level.

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Image: Ziejel Luciano

At the same time, it is a fact that the completely different outlook of Gen Z from preceding generations is demanding massive change from the luxury sector, with some brands currently finding it difficult to work out relevant ways to engage them. Predicted by Bain & Co to form at least 30% of the luxury consumer cohort by 2030, from brand positioning to material choices, Luxury is having to adapt to a new set of rules enforced by a clientele which would rather buy elsewhere than compromise on their views. Understanding the standpoint of Gen Z is essential.

The focus for the future is on finding new ways to deliver spectacular products and experiences at very different levels, to very different audiences, via tangible and intangible assets. Even the very act of shopping must elevate in this market.

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Image: Rixo King's Road

As the luxury market recovers and refocuses from a slower year of growth, embracing these changes will be paramount for success.

Storytelling is all important, and most luxury brands have an incredible story to tell. We are privileged to work with the ultimate clients in the sector, weaving stories into material and form and translating heritage and skill into objects of desire.

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