By Enrico Campochiaro*
For years, the luxury industry has remained as a symbol of aspiration, exclusivity and sustained growth. However, today we are observing a phenomenon that is worth analyzing carefully: A global deceleration in the consumption of luxury goodswith clear signs that the economic, social and cultural context is reconfiguring the priorities of consumers.
Far from being a dramatic decline, what we see is A complex transition: The market is still relevant, but is facing unpublished pressures. In markets such as the United States, Japan and Europe, consumption has moderated. Meanwhile, emerging countries like India show signals of dynamism, but even with a lower relative weight.
What is happening with luxury consumers?
The change in behavior is clear. Generation Z, for example, has become a key actor, with a more fluid relationship with luxury: they want marks with purpose, hyperpersonalized experiences and values aligned with their identity. The logo or brand inheritance is no longer enough; Today an authentic, coherent and sensitive narrative is required.
In addition, the economic context has changed. Inflation, geopolitical uncertainty and the slowdown in growth in China – one of the key engines of the sector – are causing a break in purchase decisions, even among high purchasing power consumers.
The ‘new luxury’: beyond the product
Another trend that we are observing is the expansion of the concept of luxury towards experience, sustainability and innovation. Brands that previously based their attractiveness on their products, today are looking to connect emotionally with their audiences through content, services and communities.
Technological sophistication is also evident: the use of AI for personalization, digital channels as an aspirational space, and the exploration of new formats (such as gaming or metachos) are marking the rhythm of change. But this digital jump requires not only investment, but a strategic review of the brand’s DNA.
What should luxury brands do?
In this context, the recommendation is not to be alarmed, but adapt. Luxury is not in crisis; this evolving. And those who understand this transformation as an opportunity, not as a threat, may maintain their long -term relevance.
Some keys:
- Actively listen to new generations without losing the essence.
- Bet on hybrid models that integrate digital and physical with coherence.
- Maintain high quality standards, but open space to cultural flexibility.
- Invest in narratives, not only in campaigns.
We are witnessing a paradigm shift. One that does not erase the value of luxury, but that does require a more sensitive, strategic and proactive reading of the environment. We share this analysis not as a alarm signal, but as an invitation to think together the future of luxury. Because, if something has demonstrated this industry over time, it knows how to reinvent itself.
About the author:
*Enrico Campochiaro, Global Company Lead en Human Connections Media
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
Follow business information and today in Forbes Mexico
