The global luxury industry is undergoing a dramatic shift, with top-tier clients emerging as the primary growth drivers amid a slowdown in the Personal Luxury Goods Market. According to BCG’s True Luxury Global Consumer Insights 2025 report, the market is expected to remain flat or slightly negative in 2025—the first time in over a decade that luxury growth has stalled.
This inflection point is marked by a clear divide between consumer segments. Aspirational buyers—once the backbone of luxury, contributing up to 70% of the market—are rapidly retreating, having lost nearly 15 percentage points in share due to affordability concerns and shifting spending habits. In contrast, ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs), who account for just 0.1% of the global population, now drive a staggering 23% of all luxury spending.
The Rise of the Ultra-Spender
The report reveals that brands overly reliant on aspirational buyers are seeing performance erosion, while those focused on ultra-spenders—clients who typically spend €355,000 annually on luxury—are proving far more resilient. This elite cohort is supported by a growing global base of 900,000+ HNWIs, expanding at a pace of nearly 10% annually.
“These top-tier clients expect more than just luxury products—they’re seeking connection, personalization, and excellence,” the report states. “Yet, what they often experience is a noisy, industrialized version of luxury that lacks intimacy and soul.”
India: The Emerging Luxury Powerhouse
While India isn’t yet the “next China,” its trajectory is catching global attention. With its HNW and UHNWI population projected to grow at a compound annual growth rate (CAGR) of 11–15% through 2034, India is fast becoming a key strategic market for global luxury brands.
Wealth creation in India is accelerating alongside a young, brand-savvy consumer base. As affluence rises to meet aspiration, luxury brands are intensifying efforts to build deeper local engagement through bespoke experiences, craftsmanship, and exclusivity.
Back to the Core: A New Strategy for Brands
The report urges luxury players to return to their roots—focusing on the core fundamentals of the industry: exceptional product quality, emotional client relationships, and trust. This includes:
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Prioritizing top-tier clients with high-touch, human-led service enhanced by GenAI
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Offering vertically integrated, high-quality products
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Crafting exclusive experiences that resonate beyond ownership, tapping into lifestyle and wellness
“Luxury is no longer just about the product—it’s about lifestyle orchestration and ‘health-as-wealth’ values,” BCG notes.
Conclusion
As the luxury industry resets, the focus is shifting from scale to soul. Brands that realign their strategies around the most valuable clients and restore the essence of exclusivity stand to lead in this next chapter. And in this new era, markets like India—with growing affluence and appetite for luxury—are emerging as pivotal players on the global luxury map.
