Australia's luxury landscape has undergone a shift driven by inflation, cost of living pressures and evolving generational values, according to the Growth Distillery's study, The Forces Shaping Luxury.
Luxury remains aspirational despite economic challenges, but future consumers now seek clear emotional and practical justifications for their spending, presenting both challenges and opportunities for brands.
The research identified emerging profiles representing tomorrow's luxury consumers:
- Young, Free and Earning: High-income young adults seeking status through quality and recognition.
- Freed Up and Returning: Older Australians re-engaging with luxury, driven by emotional reward.
- Property Wealth Builders: Younger achievers prioritising quality and personal values.
- Driven, Diverse and Rising: Ambitious, culturally diverse males who view luxury as a symbol of success.
- Wealth Transfer Recipients: People with inherited wealth, seeking status and exclusive experiences.
- Non-Traditional Wealth Creators: Young entrepreneurs prioritising innovative, individualised luxury.
"Our research shows luxury's future lies in emotional and cultural resonance, not just exclusivity and price," said Growth Distillery research director Bethan Hockey.
"This disruption offers a unique opportunity for luxury brands to lead market transformation. Those who can balance short-term performance with long-term legacy building will emerge as winners in this new luxury landscape."
The Growth Distillery is an independent research think-tank, powered by News Corp Australia.
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