The luxury market is polarising between the aspirational customer and the experience customer

A new report, published jointly by Altagamma and the Boston Consulting Group (BCG), reveals how the luxury consumer is evolving and highlights the growing polarization between aspirational and ultra-exclusive customers. The 11th edition of the True-Luxury Global Consumer Insight, recently presented in Milan, offers a comprehensive analysis of how wealth is diversifying, shifting geographically, and transforming consumption dynamics in the global luxury market.

Sustained growth in luxury: More customers, but with more polarized profiles

The number of high-net-worth individuals (HNWIs), i.e., those with assets exceeding $1 million, has surpassed 940,000 globally. This figure is expected to increase at an annual rate of 9% in terms of the number of people and 8% in terms of assets under management until 2030.

While North America remains the epicenter of luxury, new regions such as India and Southeast Asia are emerging as key growth hotspots. This phenomenon reflects the globalization of luxury goods consumption, generating numerous opportunities, but also new strategic challenges for brands.

The aspirational consumer: The fragile face of the luxury market

But to better analyze this scenario, let’s start with the so-called “aspirational customer,” who spends less than €5,000 per year on luxury goods and services. They represent 74% of the total market value but face a progressive loss of purchasing power. Although they still constitute 61% of the market volume, this figure has fallen by 13% since 2013, due to factors such as inflation, economic uncertainty, and geopolitical tensions.

The regions most affected by this contraction in luxury consumption are:

• China: with a 45% drop
• Europe and the United States: 30% drop

Ultra-luxury customers now lead the market.

And at the other end of the spectrum are high-end customers, who spend more than €50,000 annually. Although they represent only 0.1% of consumers, they generate 37% of total luxury spending.

This consumer spends on average:

• €360,000 annually on personal luxury, hospitality, design, wines, and spirits.
• Up to €500,000 annually if spending on luxury cars, wellness, mental and spiritual balance, and longevity treatments is included.

A trend to keep in mind: “Health is the new wealth”

This group increasingly prioritizes experiential luxury, with a special focus on mental and spiritual well-being, personal aesthetics, and longevity. Spending on these types of experiences is estimated to grow by 10% over the next 18 months, consolidating this trend as one of the fundamental pillars of contemporary luxury.

New communication codes: less noise and more emotional connection

Today’s luxury consumer demands a more intimate, personalized, and purposeful relationship. 60% say they feel overwhelmed by excessive and impersonal marketing. On average, this customer profile interacts with 57 brands and receives between 40 and 50 communications per month.

The keys to connecting with the luxury consumer

• True personalization: strategies must be based on a deep understanding of the customer.
• Trust and shared values: an essential pillar for building lasting relationships.
• Quality as a priority: 90% place this attribute as a determining factor in purchasing.

Matteo Lunelli, president of Altagamma, sums it up this way: “The high-end customer profile is constantly evolving. Brands must develop more targeted, authentic, and highly personalized strategies.”

Luxury retail: A sector in need of reinvention

The report also analyzes the structural challenges facing retail, especially the multi-brand model, both physical and digital. Unlike single-brand stores, which have grown exponentially over the last 15 years, multi-brand retail is facing a truly critical phase.

These are the main challenges of the multi-brand channel:

• Loss of relevance compared to flagships and own-brand stores.
• Difficulties in discovering emerging brands on online platforms.
• Unsustainable models, such as the case of Farfetch, have failed in their attempt to generate sustainable value.

According to Luca Solca, analyst at Bernstein: “The reduction in supply and the lack of accessible channels for small brands are major challenges. The internet, paradoxically, is not

Emerging models shaping luxury retail

Despite the challenges, some success stories stand out for their hyper-specialized approach and scalability. According to the report, these are:

• Sephora in cosmetics.
• EssilorLuxottica in luxury optics.
• Level Shoes in a premium footwear brand.

New players to watch in this field

The report also highlights a series of brands and platforms that, in its opinion, can play an important role shortly in defining a new business model and connection between brands and consumers. These are:

• Hybrid retailers such as Amazon + Saks or Rebag
• E-commerce giants such as Google, Shein, and Temu
• Japanese department stores with new experience formats
• Inditex/Zara successfully entered the premium segment

The future of luxury is selective, human, and digitally intelligent.

The luxury sector is entering a new era where excellence, proximity, and extreme personalization are the keys to connecting with a more demanding and polarized consumer. Brands that understand this change and evolve toward a model based on values, innovation, and craftsmanship will be the ones to lead the next chapter of global luxury.

As Guia Ricci, managing director of BCG, emphasizes: “Recovering what made luxury extraordinary in its beginnings—human connection, trust, quality—will be key. Technology, used intelligently, can help rebuild this essence.”

The full report is available at this link.