The Secret Forces Reshaping Luxury: What Every Brand Needs to Know in 2025

A comprehensive report published by CXG, a leading consulting and solutions firm specialising in enhancing brand performance through innovative customer and employee experience strategies, has unveiled the key forces transforming the luxury landscape.

Titled “Key Themes Driving the Future Luxury Market: 2025 and Beyond,” the research provides valuable insights into shifting consumer behaviours, emerging markets, evolving technologies, and prevailing trends that are reshaping the industry and redefining the path to success.

Consumer Trends Shaping the Luxury Market

CXG has identified several influential trends poised to significantly impact the luxury market, with shifting consumer preferences at the core of its analysis.

• Curation Over Choice: Unlimited options are out; bespoke experiences and personalised selections are in. Today’s luxury consumers value tailored product offerings delivered to their own space over extensive, unrefined ranges. For instance, Mytheresa reported a 39% year-on-year increase in the uptake of its curated personal shopping service. Similarly, Brunello Cucinelli’s intimate “Casa Cucinelli” shopping experience and Moda Operandi’s online “Trunkshow”, which compiles personalised collections for shoppers, have seen notable success.

• Polarisation and Attainable Luxury: As the spending gap between ultra-high-net-worth individuals and aspirational consumers widens, brands must understand and cater to all areas of the spectrum. Approximately 40% of luxury revenue comes from the top 2% of clients, driving the development of sophisticated VIP programmes to foster exclusivity for the wealthiest customers. Conversely, the growing popularity of high-low dressing and accessible price points, evidenced by the success of brands like The Frankie Shop, Totême, and Favorite Daughter, means companies must carefully consider their value proposition across all market tiers.  

• Resale and Rental: Traditional ownership models are being challenged as access to luxury goods expands through innovative rental and resale initiatives. Established and emerging players are driving growth in the rental market via platforms such as Switch, Armoire, Vivrelle, and CaaStle. Meanwhile, third-party providers like Vestiaire Collective, Fashionphile, The RealReal, and Vinted are carving out a niche in luxury resale, alongside brand-owned channels such as Canada Goose and Sandro. As sustainability increasingly influences shopping habits, controlling secondary markets will be crucial for revenue maximisation.

• Experience-Led Sales: Advances in technology and data-driven approaches are enabling luxury hospitality providers to offer more personalised customer experiences. There is a growing emphasis on experiential rather than destination-driven travel, creating opportunities to develop products and services around themes such as wellness and sports. This trend is also attracting brands into the hospitality sector, as seen in LVMH’s partnership with Accor on Orient Express trains, Fendi’s private suites at the Crans-Montana ski resort, and L Catterton’s investment in AmaWaterways cruises. Beyond travel, luxury branded residences are expanding rapidly, particularly in hotspots like Miami and Dubai.

 
Evolving Thematic, Demographic, and Geographical Patterns

Beyond consumer trends, other factors shaping the luxury market include the expansion of the health and wellness sector beyond fitness into longevity, with premium services offering science-based care through membership schemes and exclusive clubs. Direct-to-consumer brands are responding to demands for experiential services by reinvigorating physical retail spaces, leveraging technologies such as augmented reality, virtual reality, and artificial intelligence, and enhancing personal interactions with highly skilled brand ambassadors.

Demographically, successful brands must cater to the divergent demands of Gen-Z (under 30s) and the Silver Generation (over 50s). The former continues to champion sustainable and innovation-led luxury, while the latter prioritises quality, functionality, and expertise. Geographically, the global centre of gravity is shifting eastward, driven by markets in Saudi Arabia, the UAE, India, China, and Vietnam. Meanwhile, in the USA, California’s influence is growing, particularly in the realms of sustainability and casual luxury.

Balancing Demands and Leading Trends

“It’s clear from our research that embracing new technologies will be a key driver for success in the luxury space of the near future,” notes Christophe Caïs, Founder and CEO of CXG. “Catering to the differing demands of Gen-Z and the Silver Generation, while navigating shifting preferences between digital and physical spaces, will present challenges. However, tomorrow’s winners will be those who seize the unprecedented opportunities this creates.”

The trends identified in the CXG report offer a comprehensive view of the evolving luxury landscape. Success in this space will require balancing the complexity of changing consumer demands with the opportunities presented by an evolving environment, all while maintaining an authentic connection with the luxury industry’s target demographics.

Last Updated on 19 hours by News Desk 1