Insights from luxury industry leaders reveal a shifting landscape in the market for 2024. From the impact of the 'Richession' to the rise of experiential travel and eco-friendly design, we tapped the experts to learn their predictions and the trends that will shape the world of luxury in the coming year.
The ‘Richession’
“The one big one that hits me is that luxury brands are seeing American aspirational luxury consumers are hitting the brakes on high-end fashion and leather goods – as evident in recent quarterly sales reports from LVMH, Richemont, Capri Holdings, Canada Goose, and others. Adding to evidence that a strong, months-long, post-pandemic splurge may be ending.
European luxury labels have been riding a wave of strong demand from Americans, who emerged from lockdowns with savings and a desire to splash out on designer labels. But it looks like inflation, geo-political turmoil and the tightening of monetary policy have dampened consumer sentiment."
Silvertone Consulting
"Other evidence to support it is recent credit card data from Citi released showed that U.S. luxury spending declined to the lowest monthly rate in nearly three years, down 18% as fewer people splashed out on high-end goods. Even The RealReal recently said people are trading down to more affordable brands within resale in order to find more value within luxury.
Another interesting phenomenon is what the Wall Street Journal coined as the "richcession", which describes an economic slump that hits the rich harder. That the downturn disproportionately impacts some of the country's wealthiest people from high-paying sectors that experienced big layoffs in the first half of the year. I'm not buying into that as much as I see the top 1% ignoring economic factors and keeping the luxury goods market buoyant. We're already seeing many luxury brands rechanneling their efforts to cater to the very upper echelons of global wealth.
It will be interesting to see if this is a hint at a first step to normalization after the post-pandemic euphoria, or if the US will experience a harder landing the second half of the year.”-Scott Kerr, Founder & President, Silvertone Consulting
Quality over quantity
"We’re seeing a renewed and increased focus on truly intimate, bespoke, in-person events throughout the luxury space. With the current focus on stealth wealth and quiet luxury, creating meaningful experiences to showcase craftsmanship with a backdrop of storytelling are more important than ever to effectively communicate our brands’ messaging. Quality is all that matters right now. There is less emphasis placed on celebrity and hype right now. We expect this to continue on well into 2024.
It’s exciting to see that younger generations will continue to assert their position as critical growth levers for the luxury sector. Gen Z and Gen Alpha’s luxury spending is expected to grow three times faster than other generations. Gen Z shoppers are buying luxury items up to five years earlier than their millennial predecessors. This trend is especially apparent for Gen Z’ers in beauty, and more specifically, in skincare. They are more aware than any previous generation about the importance of taking care of their skin, and will pay for it. Therefore, luxury brands must adapt to market to these next generations via digital and social media platforms." -Sarah Gargano, President & CEO of Sarah Gargano Communications
The 'Great Wealth Transfer'
“We are at the beginning of a 20-30-year Great Wealth Transfer resulting in an explosion of a new, younger audience of collectors. Typically, only a tiny fraction of any category is traded in any given year, but increasingly we are seeing younger generations buy high quality objects, particularly in luxury, with a willingness and intention to resell within a short to medium time frame. Younger generations are entering the high-end resale markets inspired by craftsmanship and provenance and looking to buy high quality objects with lasting value and investment performance. This is being fueled by a mindset of ‘fewer but better,’ and desire for objects which not only demonstrate self-expression, but are also environmentally sustainable.” - Eléonore Dethier, Vice President, Global Head of Partnerships, Sotheby's
Multisensory dining
“Fine dining undergoing a profound transformation, where it's no longer just about exceptional cuisine. Diners today are on a quest for more than just good food; they yearn for unforgettable, multisensory experiences. This shift is redefining the fine dining landscape, with an emphasis on immersive events and experiences that engage every sense. Beyond delicious dishes, fine dining establishments are incorporating entertainment elements seamlessly into the dining experience. Whether it's live performances, interactive art, or thematic storytelling, these touchpoints add layers of excitement and engagement. Moreover, fine dining is increasingly becoming a platform for change. Many events hosted by upscale restaurants are designed to raise awareness and support various causes, from sustainability to social issues. This blending of extraordinary flavors with purposeful encounters marks the future of fine dining—a fusion of taste, sensory immersion, and meaningful impact.” Philip Camino, Founder of The Best Of
The Best Of c/o SingleThread
Small group travel
“Small luxury group travel is trending upwards, with travelers seeking the value of shared experiences, and making new memories, with those who matter most. Time off from work may be ephemeral, but with increased flexibility, we’ve seen a pronounced increase in groups of friends looking to travel together in 2023 and 2024, whether a grand reunion, or setting the stage for something perennial, especially given the diaspora post-pandemic with friends moving and working from new places, often further afield. We’ve seen bookings from multi-generational families to large groups of friends increase 35% in 2022 vs 2019, and groups (of 8 people +) now account for 25% of all BT bookings in 2023.
Many clients, and of them increasingly multiple family units, are now seeking to tap into the joy of traveling together, with friends from near or far, to unearth and share rare moments together, be it a sunset on the Nile in Egypt aboard an antique dahabiya, or a sensorial hike to Tiger’s Nest in Bhutan. Different from the standard plug and play group trips on offer with strangers (even like-minded ones) they are looking for inherent flexibility and a tailored approach to individual itineraries that also allow for break-away experiences that tap into particular passion points.” - Brendan Drewniany, Director of PR & Communications, Black Tomato
Experiential travel
"I think we are going to see an increase in experiential luxury travel in 2024. Luxury experiences will gain popularity, with travelers seeking exclusive, one-of-a-kind trips such as yacht charters, private jet tours, bespoke culinary-focused trips and personalized health and wellness retreats." -Caitlyn Chase, Founder, Caviar & Cashmere
Eco-friendly design
“In the luxury design and lifestyle industry, we're thrilled about our clients' upcoming projects in 2024, which will showcase rich color palettes, intriguing metal accents, and a notable emphasis on materials such as glass. With a growing focus on sustainability and eco-friendliness, there has been a rise in the use of responsibly sourced materials, as well as a growing interest in unique, vintage, and antique pieces. There is a noticeable shift towards a ‘repurpose’ mindset. Curvaceous furniture remains a beloved centerpiece in luxury interiors. Its soft lines and organic forms continue to be a symbol of warmth and comfort. Additionally, we're excited to witness a rise in whimsical interiors, as individuals become more adventurous in expressing their personalities. We can expect a year of daring creativity and sustainability!” -Sarah Gaudar, Communications Director, A Design Partnership
