Why luxury brands need to reinvent themselves in a declining market

After a record year, the luxury goods market is stagnating: the Chinese market is under pressure and Generation Z is putting off luxury spending. Brands face a dilemma: keep serving top customers or reach new audiences. Five trends are emerging.

1. Experiences over goods

The global luxury market exceeded a record 1.5 trillion euros in 2023. That growth was partly due to a resurgence in the luxury travel market. But the first quarter of 2024 saw a slowdown under macroeconomic pressure in most regions. The personal luxury goods market experienced a slight decline of an estimated one to three per cent, although there are wide variations between brands and regions.