Luxury is in a state of reorientation. According to Bain & Company, global luxury spending in 2024 added up to €1.5 trillion ($1.546 trillion), a minute growth rate between -1% and 1% compared to 2023. Given the global macroeconomic uncertainty and price inflation, these buyers are prioritizing experiences over products. The personal luxury goods sector is seeing a slowdown of -2%, especially among Gen Z audiences. The luxury customer base has shrunk roughly 50 million since 2023. “This is a signal for brands that it’s time to readjust their value propositions. To win back customers, particularly the younger ones, brands will need to lead with creativity and expand conversation topics. Simultaneously, they must keep their top customers front and center, surprising and delighting them while rediscovering one-to-one human interactions. For all customers, it will be critical to double down on personalization, leveraging technology to achieve it at scale,” states Claudia D’Arpizio, Bain & Company partner and leader of its global Fashion and Luxury practice.The US, Japan, and southern Europe are the biggest regions for growth, while luxury spending has slowed down in China, Canada, and the Middle East. Emerging markets in Africa, India, Southeast Asia, and Latin America are likely to bring 50 million luxury spenders to the marketplace by 2030.Beauty products, especially fragrances, which offer a small indulgence, however, are still showing good performance.