It appears that even in the present era that is seeing major shifts in consumer values, the luxury industry is still finding effective ways to bolster its durability and maintain its relevance. 

The Dissonance, Résonance & Nouveau(x) Luxe(s) conference at the Sorbonne in Paris saw the global market research company Ipsos present the findings of a study carried out among 1,500 people across the United States, France, and China. 

The survey participants were drawn from the most affluent populations in those jurisdictions. This enables the typical client of a luxury digital marketing consultancy like Skywire London to have confidence in the veracity of what the research discovered. 

What, then, were the principal insights gained from the survey? 

Ipsos ultimately found from its polling that despite the uncertain global economic picture marked by geopolitical friction, there is still plenty of reason to anticipate a bright future for the world’s high-end brands. 

In the words of FashionNetwork, which reported the study findings: “Luxury remains a social and symbolic marker that continues to appeal to new generations of consumers.” 

The study findings indicated that the desirability of luxury brands’ offerings seemed to remain particularly great for respondents aged under 34. Some 39% of people within this cohort in China, as well as 47% in France and 65% in the United States, claimed they had an increased interest in acquiring luxury goods. 

Such numbers suggest that when it comes to the consumption habits of affluent individuals, luxury continues to be deeply entrenched. 

This situation might reassure a lot of the key decision-makers for today’s prestige brands. However, it is also crucial for such players to acknowledge the significant shifts that are being brought about by luxury-market customers during the 2020s. 

From recent price increases to the rise of experiential luxury, a lot is changing in the sector 

The top-ranked luxury analyst Erwan Rambourg has noted a 50% average increase in the price of leather goods over the past four years. Sure enough, it is fair to say such steep rises haven’t gone unnoticed by the affluent populations that have particular thirst for luxury. 

Indeed, Ipsos found through its study that in the view of 73% of Americans and 70% of French participants, prices had become excessive relative to the perceived quality. Intriguingly, though, the equivalent percentage among the Chinese respondents was just 43%, which mirrors the still-buoyant – albeit slowing – market in that part of the world. 

Another major discovery to emerge from the global market research specialist’s survey, was that experiential luxury was gaining ground over ownership-focused luxury. 

Respondents were asked, “between a bag or luggage from a major luxury brand and a stay with your loved ones in an exceptional place, which would you choose?” Almost nine in 10 (86%) survey participants in both the United States and France opted for the experience. 

The proactive industry for high-end goods and services is showing its ability to adapt 

What is apparent from all these poll findings is that even at a time characterised by so much turbulence for other sectors around the world, the luxury space is managing to thrive and continues to be a very attractive market. 

Recent years may have been slower growth than might have been the case if the pandemic, inflation woes, and geopolitical tensions hadn’t exerted their respective effects. 

Still, luxury is clearly continuing to transform and reinvent itself, at the same time as preserving its fundamental appeal to purchasers and investors alike. 

Skywire London can be at the ready to support your prestige brand’s growth ambitions 

Would you like to put your high-end brand in the optimal position to lure affluent audiences and maximise its all-round digital effectiveness over the months and years to come? 

If so, please don’t hesitate to request a conversation with the experts at our London-based, but globally minded luxury digital marketing consultancy. 

Photo by Simon L on Unsplash