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Who's the next generation of Prada Gucci
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and MS buyers? The luxury market has
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taken a battering in the last few years.
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The cost of living crisis squeezed
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disposable income constricting the pool
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of aspirational customers in Europe.
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Meanwhile, a downturn in China's economy
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combined with a move to quiet luxury hit
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revenue on the other side of the world.
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Investors perked up at the start of this
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year when it looked like the market was
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set for a rebound, but Trump's tariffs
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dashed hopes of a boom in the US in the
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short term. Now they're shying away from
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big names like LVMH, Caring, and Dior.
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So what or who will save the big luxury
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houses? Any short-term upswing in the
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market is likely to be driven by high
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net worths hungry for experienced driven
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purchases. Financial constraints may
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have pushed aspirational customers away,
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but the world's elite is actually
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growing in size and wealth, leading
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analysts to look to the group to
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revitalize the sector. In fact, the most
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successful brands today are those that
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focus on the ultra wealthy, according to
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a recent BCG report. It's a lucrative
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market to tap into. The amount of wealth
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controlled by ultra rich families with
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family offices is expected to reach 7.99
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trillion by 2030, a substantial increase
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from 2.43 trillion in 2019. What's more,
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this group is increasingly young. Gen Z
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is expected to inherit trillions of
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pounds in the next decade from their
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boomer parents, with Europe alone to
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inherit 3.6 6 trillion. Big fashion
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houses are already shifting to cater to
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them. They're increasingly offering
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digital and personalized experiences, as
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well as upping their exclusivity and
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quality. Brands that manage to tap into
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what the young, rich, and
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experience-hungry global elite want are
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set to see massive returns over the next
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few decades. Those that don't might find
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themselves overtaken. For everything you
1:44
need to know about the story, stick with
