The luxury market, which has always embodied the ultimate expression of consumer desire, is going through an unprecedented period of turmoil. After five years of growth outpacing the global economy, 2024 saw a 2% contraction, with 50 million consumers giving up luxury due to economic uncertainty and inflation. With 80% of the sector’s growth attributable to price increases rather than volume, brands no longer have any margin to rely solely on this pricing strategy.
At the same time, headwinds in the global economy—tariffs, slowing tourist spending, regional disparities—are increasing pressure on the sector. While luxury players cannot influence economic policy or international trade, they can restore their desirability through campaigns that create an emotional connection strong enough to overcome the price barrier.
To highlight these developments, Ogury conducted a study in May 2025 on three major markets: the United States, Italy, and Japan. More than 7,500 consumers were surveyed to provide a detailed picture of how perceptions of luxury are changing and what the new drivers of desirability are. In an industry driven more by desire than necessity, brands must take the time to understand what luxury means to consumers today and identify the emotional triggers that drive demand in order to redefine their role in the next era of luxury.
The new codes of desire among luxury consumers
One of the major challenges facing the industry is the erosion of the perceived value of luxury goods and services. According to the study, nearly one in two consumers (43%) say that their perception of luxury has changed. Among them, a significant proportion believe that this type of product has become “too expensive” (up to 30% depending on the country), while around 20% now have higher expectations. This increased sensitivity is reflected in segments that are resisting the downturn (travel, retail, and outlets) as well as in the growth of “entry-level” luxury categories such as beauty and eyewear.
Rather than relying on traditional markers of prestige, which encourage consumers to adopt status symbols in relation to others, brands should focus on avenues for personal expression.
For 25-30% of consumers surveyed, the appeal of uniqueness is a decisive factor in purchasing. Advertising campaigns should therefore highlight the rare and customizable nature of products and be able to adapt to the profile and context of consumers. Interactive formats, for example, could go further by allowing the item to be virtually customized within the campaign itself, creating a direct link to this quest for self-expression.
Changing drivers of desire: from possession to experience
Luxury consumers now place less importance on what they own than on what they experience. Brands that emphasize the experiences offered by their products and how they fit into a luxurious lifestyle are increasing their appeal. According to the study, 32% of American consumers say they are willing to interact with a brand that offers them something they have never experienced before, and 23% of Japanese respondents say they are willing to pay more for premium services and experiences.
While experience is a key driver, brand heritage also remains a powerful lever. More than a third (36%) of consumers believe that heritage justifies a higher price, while 34% are attracted to “timeless” designs. Heritage is an invaluable asset: it reflects a history, values, and traditions, and reassures consumers about the stability and resilience of the brand in these uncertain times. Beyond highlighting a brand’s heritage at the point of sale, it is now essential for luxury brands to convey this heritage in their marketing strategies, through storytelling that evokes nostalgia and creates an emotional connection.
The consumer then becomes more than just a buyer, but a true guardian or ambassador of the brand. Patek Philippe’s iconic slogan illustrates this perfectly: “You will never fully own a Patek Philippe. You will merely be entrusted with it for the next generation.” This phrase embodies tradition, rarity, and transmission, positioning the watch as a timeless investment that connects generations.
In addition to heritage, the act of gift-giving also remains a central pillar of luxury. More than half of consumers (52%) purchase a luxury product as a gift, whether to treat themselves or to celebrate a loved one.
To appeal to this important segment, gift-focused campaigns must stand out from those targeting personal purchases by offering personalized services and experiences that transform each purchase into a unique moment.
This year, marketing teams in the sector will have spent a lot of time revising their copy in an attempt to revive the soul of their brands. But it is not only brands that have evolved: it is the very concept of luxury. Consumers have moved from possession to experience, and from prestige to personalization. Brands that succeed in capturing the emotion and meaning behind this new definition will secure a lasting place at the pinnacle of cultural desire.
Editor’s note: Ogury’s study of the luxury market is based on large-scale surveys conducted in the United States, Japan, and Italy. The sample of 7,561 responses provides a robust and comprehensive basis for analysis. Ogury’s surveys collect zero-party data—reliable information that consumers voluntarily share about their behaviors, preferences, and purchase intentions. Because this data comes directly from individuals, rather than from inferences, it offers a unique, accurate, and privacy-friendly view of audience motivations.
Read also > [COLUMN] What are the remedies for the current “Luxury Fatigue”?
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