When a jewelry house now reserves its capsule collections for fewer than two hundred carefully selected clients, we realize how much the luxury sector has shifted in 2024. The market has not just slowed down: it has reconfigured around a more limited, more demanding, and significantly more spendthrift clientele. Understanding these movements is key to grasping what will structure the industry for the coming years.
Polarization of Luxury Clients: The End of the Aspirational Consumer
The standout fact of 2024 is the reshaping of the customer base. According to the Bain-Altagamma study, around 50 million consumers have left the luxury market over the past two years, whether by choice or necessity. This primarily concerns aspirational profiles, those whose annual spending remained modest.
At the same time, the wealthiest buyers have never held as much weight. Top-tier clients now account for nearly a quarter of global spending, compared to about 14% ten years earlier according to BCG. Very Important Customers represent over 40% of the revenue of major houses. This shift changes everything: retail strategy, store network, sales training, and the expected level of service.
In practice, brands are reducing their entry-level lines and investing heavily in personalized customer relationships. Several players, documented by the publications followed on mondeduluxe.fr, have enhanced their high-end loyalty programs with private events, early access to collections, and dedicated support.
Experiential Luxury vs. Product: What Spending Reveals
Another structuring trend is spending shifting from products to experiences. High-end hospitality, gastronomy, and bespoke travel are capturing an increasing share of luxury budgets. In 2024, luxury hotels and restaurants have thrived where sales of personal goods have declined.
For houses historically focused on products, the response has been to create immersive universes around their collections. We have seen a proliferation of brand residences, ephemeral in-store experiences, and collaborations with Michelin-starred chefs. The idea is no longer just to sell a bag or a watch, but to offer a moment that the customer cannot find anywhere else.
This shift has a direct impact on investment strategies. Marketing budgets are being redistributed towards events and hospitality, sometimes at the expense of traditional advertising. Returns on this point vary by segment, with jewelry remaining more product-focused than fashion, for example.
European Regulation on Unsold Stock: A New Operational Constraint
The European regulation prohibiting the destruction of unsold textiles began to have concrete effects in 2024. For luxury houses, this constraint completely changes stock management.
- Production volumes are adjusted upstream, with shorter runs and restocks driven by real-time sales data.
- Redistribution channels (donations, material recycling, upcycling) must be formalized and tracked, necessitating new logistical partnerships.
- The use of blockchain technology for product traceability is accelerating, allowing for the documentation of the complete lifecycle of an item, from raw material to end customer or second-life circuit.
This regulatory obligation aligns with a strong consumer expectation for sustainability. Houses that anticipated these issues (Hermès with its recycled leathers, Stella McCartney on bio-sourced materials) find themselves ahead. Others must urgently adapt their chains, incurring significant operational costs.
Sustainability and Luxury: Beyond the Discourse
The second-hand luxury market continues to grow faster than the primary market. Second-hand is no longer seen as a threat by major houses, but as a complementary channel. Some have launched their own certified resale platforms to maintain control over customer relationships and brand image.
The issue of sustainability in the luxury industry now goes beyond greenwashing. Consumers, particularly Generations Y and Z, check commitments and penalize discrepancies between promise and reality. Transparency regarding the origin of materials, manufacturing conditions, and carbon footprint is becoming a purchasing criterion.
Financial Performance 2024: What Group Results Say About the Market
LVMH reported a revenue of 19 billion euros in the third quarter of 2024, down 3% year-on-year. The fashion and leather goods segment fell by 5%, and wines and spirits by 7%. Only perfumes and cosmetics saw growth, with a 3% increase.
Hermès stood out in this landscape, maintaining a growth dynamic where most competitors were declining. This divergence illustrates the premium on ultra-high-end positioning, where top-tier clientele remains active.
Bank of America analysts noted that the luxury goods sector recorded a 3% revenue decline in the third quarter, one of the worst performances outside the Covid period. The average annual growth rate over five years has fallen below the historical level of 9%.
- The United States remains the world’s largest market by value, ahead of China, where demand has significantly weakened.
- Japan has fared well thanks to an influx of tourists taking advantage of a weak yen.
- Digital innovation (AI-driven clienteling, virtual try-ons) is emerging as a lever to win back lost consumers.
The luxury sector in 2024 is not in a terminal crisis. It is undergoing normalization after years of exceptional post-Covid growth. The houses that will emerge strengthened are those that have understood that the market has tightened around fewer, wealthier clients who expect an unprecedented level of service, transparency, and experience.
