Are we approaching the peak of luxury?

EY’s research identified five key aspirational luxury customer segments, each with distinct preferences and spending habits. From high-spending “prestige” and “discerning” customers to “drifting” ones growing more price-sensitive, the segmentation reveals clear pathways for personalized engagement and targeted strategies. Importantly, even the most infrequent buyers show future growth potential if brands can deliver the right mix of quality, experience and innovation.

Quality still matters, but so does experience

The research found that 75% of aspirational customers prioritize quality above all else – even above exclusivity, price or celebrity endorsement. While luxury has long served as a symbol of status, customers are placing growing emphasis on craftsmanship, brand heritage and long-term inherent and perceived value, particularly in the context of economic uncertainty. At the same time, many feel disillusioned by more recent steep price hikes that seem disconnected from product value.

That said, luxury is no longer just about the item itself – it’s about the full brand experience. Customers particularly appreciate the human interaction and VIP treatment that in-store shopping offers, with 96% indicating that this channel offers the highest level of satisfaction compared with any other. For many consumers, brands and products must also be aligned with their values — especially around sustainability, which has become an important consideration in purchasing decisions.

While customers want access to exclusive products and a personalized service, the data shows that 66% of those spending under EUR 5,000 annually are not being offered meaningful brand experiences. This presents a massive missed opportunity, given that 83% of them say that such experiences would influence them to purchase from the brand again and 70% are even willing to pay for such unique experiences alongside their purchase.

New business models

Some luxury brands are finding growth opportunities by expanding into adjacent areas. Forerunners are finding strong customer appetite for services such as branded travel experiences, product rentals and certified pre-owned sales, which are set to become a strategic pillar of the future luxury ecosystem and reflect the growing importance of sustainability as a purchase driver. Although scepticism around authenticity persists in the pre-owned market, 54% would buy pre-owned items directly from a trusted maison. Similarly, 50% would consider renting for convenience or for special events. 

Subscription models for limited-edition products can also serve to engage customers consistently and build community around the brand, aside from unlocking steady revenue streams.