EY Luxury Client Index – Luxury industry at a crossroads all over the world

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• Swiss luxury market growth muted (3.5%). Significant slowdown identifiable across the world.
• Considerably fewer purchases of luxury goods in bricks-and-mortar brand stores in Switzerland (53%) than in other countries, where three-quarters (75%) of those surveyed made their most recent luxury purchases.
• Nine out of ten Generation Z respondents in Switzerland are willing to pay for an exclusive sales experience – more than anywhere else in the world.
• Sustainability is a key purchasing factor for around a quarter of luxury buyers in Switzerland (26%).
• Internationally, quality takes precedence over price when buying luxury goods.

Zurich, 29 July 2025 – After decades of double-digit growth, the global luxury market – worth around EUR 363 billion – is experiencing a significant slowdown. A weaker economic situation and reduced spending in key regions such as China led to a fall in the value of European luxury stocks of around USD 240 billion and profit warnings across the industry.

By contrast, the luxury market in Switzerland grew by 3.5% in 2024 to reach CHF 5.4 billion. However, luxury fashion and leather goods declined by 1.7% and 2.9%, respectively, in 2024 (Statista 2025).

Quality, sustainability and brand experience are among the key purchasing criteria in the luxury goods segment. But purchasing behavior is changing. In view of declining sales figures and rising prices in the global luxury market, questions are being asked about the consumer behavior of different generations. What do they expect – and what do luxury brands need to offer in order to remain relevant?

In its latest Luxury Client Index, EY sheds light on the changes in consumer behavior in the luxury segment. More than 1,600 “aspirational luxury clients” were polled in the international survey conducted in spring 2025, including over 100 from Switzerland. The results provide differentiated insights into their values, expectations and priorities.

Commenting on what the results of the report mean for Switzerland, Fabian Wehren, EY Consumer Products Sector Leader EY Switzerland & Global Account Leader, said: “Quality remains crucial for the luxury sector in Switzerland and around the world. The increasing tendency towards online luxury shopping and the question of what action the luxury sector needs to take in response are of particular interest in the case of Switzerland.”

Quality matters most

More than two-thirds of consumers (71%) surveyed worldwide – 66% in Switzerland – cite quality as the primary motivation for owning luxury goods. Owning something of quality is more important to respondents than exclusivity, prominence, personalization and even price. But sustainability is also gaining importance. Around a third (31%) of global respondents consider sustainability to be one of the five most important purchasing criteria – in Switzerland, the proportion is 26%.

At the same time, customers are increasingly feeling that the quality of luxury goods does not match the price. Almost two-thirds (62%) of those surveyed internationally – 60% in Switzerland – say that they have refrained from buying a luxury product in the past 12 months. The main reason for this is that the price is too high. In this context, flexible payment options and certified alternatives are becoming increasingly important.

Young people in Switzerland want an “experience”

Despite high expectations of a comprehensive luxury experience, shoppers in the lower luxury price segment in particular are often neglected. For example, 59% of those surveyed internationally (63% in Switzerland) who spend less than EUR 5,000 per year report that they have not had a single “brand experience” in the past 12 months. And this despite the fact that 83% of all respondents worldwide (Switzerland: 65%) stated that such an experience would motivate them to buy again. Furthermore, a comparatively high proportion in Switzerland (23%) take a “neutral” position – globally, it is just 11%.

A clear majority – 70% – of respondents (Switzerland: 66%) would in principle be willing to pay for an exclusive brand experience. This trend is particularly pronounced in China (84%) and among Generation Z (worldwide: 79%). There is also a high level of agreement among this age group in Switzerland, with almost nine out of ten respondents (89%) from Generation Z.

Future potential through new business models

The market for certified second-hand luxury products has great potential around the world. This also applies to Switzerland, albeit to a lesser extent. For example, 54% of those surveyed internationally would buy second-hand luxury items directly from a brand or an official retailer (“maison”) – provided there were guarantees of authenticity and quality. In Switzerland, just under half (46%) would also be willing to do so.

Alternative models such as renting or subscribing to limited editions are also attracting growing interest. Both globally and in Switzerland, around half of those surveyed (42%) can see themselves making use of such services occasionally.

Digital opportunities: AI strengthening customer loyalty

While the purchase of luxury goods in bricks-and-mortar brand stores continues to dominate the world – 75% of recent purchases were made in-store – and still plays an important role in Switzerland (53%), digital interfaces are becoming increasingly important. AI-supported functions in particular, such as personalized product recommendations and virtual product previews, are seen as key drivers of added value in online shopping both in Switzerland and internationally.

Fabian Wehren from EY Switzerland concludes: “The results of the survey clearly show how central the brand experience has become for consumers. Particularly in Switzerland, where luxury goods are bought online at an above-average rate, there is still room for improvement in the digital customer experience. To remain successful in the long term, the industry must invest more in innovative technologies such as AI-powered shopping experiences and new business models.”

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