The future of luxury passes through India and 'quiet luxury'

In the United States and Europe, the market remains stable, but signs of rationalisation are emerging: more than 60% of consumers perceive a price increase in the last 24 months; uone in three Americans believe value for money has worsened; ua notable trend is the increase in the share of "Quiet Luxury Enthusiast" buyers in the US, up 22 percentage points, a sign of the transition towards a more discreet and less "logo-driven" luxury.

However, Western consumers continue to buy. Prices are rising, but segments are not reacting in the same way. The perception of increases is strong in the US, Europe and India, especially in categories such as cars (up to 45% in India and 42% in the US), jewellery (47% in India) and luxury experiences. The watch segment, however, remains an exception: less than 10% of respondents perceive a deterioration in value for money, confirming the robustness of the segment.

The study identifies seven shopper archetypes - from Icons Collector to Power Patron, from Quiet Luxury Enthusiast to Status Shopper - that change profoundly from market to market. In particular India shows a growth in Fashion Forward Icon profiles (+17 points), in line with Chinese dynamics; the US amplifies the push towards discretion and minimalism.

The study points to significant room for improvement in marketing activities, especially in the US, China and Europe, where more than one third of consumers rate the personalisation and effectiveness of the communications they receive as insufficient. The study also shows that there is significant room for improvement in marketing activities, especially in the US, China and Europe, where more than one third of consumers rate the personalisation and effectiveness of the communications they receive as insufficient

our recent study confirms a two-speed luxury: on the one hand, mature markets that are more selective and value-sensitive; on the other, new geographies such as India and China that are accelerating and redefining the imaginary of global luxury," comment Francesco Fiorese, Partner at Simon Kucher and Marco Torino, Senior Director. "For brands, it is becoming crucial to evolve towards models that engage consumers through hyper-targeted experientiality and pricing, optimisation of distinctive assortments and targeting by following consumers with very dynamic expectations.