Luxury is losing its signal.
Unimpressed
As consumers redefine what it means to be well-off, traditional status markers are fading.
Despite a growing TAM, the luxury sector has lost ~70M consumers (~15–20% of its base) since 2022 as entry-level “aspirational” shoppers opt out of empty materialism.
New Rules
Seeking creativity, novelty, and niche appeal, 70% of consumers are underwhelmed by the in-store experience, with 90% citing sameness as a factor.
But, changing creative directors helped brands regain momentum, and luxury experiences outperformed, fueled by demand for wellness, self-care, and social connection.
Reallocating
From marathon medals to Erewhon hauls, wellness is the new flex. Per Highsnobiety, 74% say having the right wellness products signals being dialed in “mentally, physically, and culturally.”
More than old money logos, Gen Z wants brands that embody their wellness-as-luxury lifestyle. The cohort is 84% more likely than other demos to up their wellness spend, and 64% say it will come from their broader luxury budget.
Adapting, companies are embracing sports and performance to reignite relevance.
Uniforms. Showing willingness to splurge, Sporty & Rich and Alo scaled by signaling studio-to-street identity. Becoming common, crossovers like On x Loewe and WNBA x Coach further blur category lines. All-in, LVMH spends $300M+ on sports — tapping Gen Z athletes Wemby and Alysa Liu, outfitting Real Madrid, and sponsoring F1.
Escapes. As biohacking becomes an opulent hobby, longevity is reshaping luxe hospitality — from Aman’s Novak Djokovic-curated detox program to Kith’s $40K/year sports club and Dior’s Mediterranean mind-body spas.
Toys. Making health metrics sexy, WHOOP became the official wearable and Team Partner of F1’s Ferrari, while Oura previously collabed with Gucci. Meanwhile, perfect sleep scores are replacing the post-vacation tan, with Eight Sleeps becoming a staple among high-earners.
Flip Side
Framing wellness as luxury exposes superficial status symbols but risks reinforcing health as a privilege — especially since the masses already struggle to afford basic care. With Gen Z valuing cultural resonance and purpose, brands must balance aspiration with accessibility.
Punchline: Luxury isn’t dying, but the old definition is. As status gets redefined, premium labels are being pushed to deliver deeper meaning, and every brand is becoming a wellness brand.
