Recent figures from luxury houses suggest growth rather than contraction. LVMH reported a rise in performance, contributing to a jump in Bernard Arnault’s net worth of around $19 billion. It is a striking contrast to the wider economic mood, where caution is the dominant note and brands across sectors are struggling to maintain connection with their audiences.
The natural question is who will continue to buy at full price as the landscape shifts. Luxury has historically positioned itself as insulated, yet even the strongest houses are not immune to structural change. Growth today may not reflect growth tomorrow.
Because by 2035, the most significant wealth transfer in modern history will have taken place. In the United States alone, an estimated $84 trillion will change hands, with similar shifts unfolding across Europe, Asia, and the Middle East. Wealth is moving. And with that movement comes a profound reshaping of who holds purchasing power and what they value.
According to McKinsey State of the consumer report 2025
“Younger cohorts are gaining spending power. GenZ spending is growing twice as fast as that of previous generations. It is expected to surpass Baby Boomer spending by 2029 fuelled by $15 trillion – $20 trillion in wealth transferred from baby boomers to millennials and Gen Z”
The old customer archetype
Many brands still operate through the lens of an older customer archetype, one who defined luxury through heritage, exclusivity and the reassurance of tradition. These values still matter, but they no longer stand alone.
The emerging luxury customer will be younger. They are different in too many ways to rely on old strategies. Their worldview has been shaped by digital immersion, economic volatility and a culture that rewrites itself in real time. They move fluidly between physical and virtual spaces, and their sense of identity is constructed through a combination of personal expression, community belonging, and narrative alignment.
They question more. They expect clarity. They seek alignment between values and behaviour. They are informed, globally aware and unwilling to be spoken to from a pedestal. They will invest, but only when they understand precisely what they are investing in.
It’s not just about status anymore
This is where many brands are struggling. Connection no longer emerges from status alone. It comes from depth, coherence and cultural awareness. Luxury cannot rely solely on archives and iconography. It must understand the psychology of a new customer whose relationship with value is shaped by entirely different conditions.
As I discuss this with colleagues and clients alike, we ask who will be agile enough to move with the wealth, and who will stay stuck in their ways?
When looking closer at the fashion industry in general, we notice the same patterns. The rise of dupe brands with the same quality as the big fashion houses but at a sliver of the price is hard to ignore, and why would the next generation pay more for the brand itself?
There is a question about who will buy luxury products in this wealth shift.
Will you stay stuck?
Planning ahead, listening, and leading with authenticity are essential not only for getting these customers to buy from you but also for gaining their acknowledgement. And it’s not about being the loudest (there’s enough noise going around), but it’s about making sense for them.
Here are some key strategies brands are implementing:
- Creative vision – a wave of new creative director appointments creates buzz.
- Range plan strategies: limiting the stock of certain items and creating hero products.
- Elevation – creating an immersive whole brand experience
- Diligence – supply chain excellence to gain customer trust
- Personalisation – use of AI to personalise and engage
I work with retail and fashion brands that understand the importance of business development and creating agile strategies that speak to their ideal customers.
If you are looking for expert or objective support, why not book a 90-minute structured session to identify your next move?
Because standing still is not an option.
Book a free introductory call – contact us here.
Joanne Yulan Jong is a Creative Strategist, Fashion Writer, and Author of the bestselling book THE FASHION SWITCH ‘The New Rules of the Fashion Business’. She has been invited to be a regular columnist for WWD magazine.
