Table of Contents

1. Key Highlights
2. Introduction
3. What Kearney means by "normalising": growth, adjustment and the end of hyper-acceleration
4. Regional differentiation: three pillars and a ring of outperformance
5. Category winners and losers: jewellery and experiences lead, apparel lags
6. Consumers: concentration of spend, cautious aspiration and evolving definitions of luxury
7. Pricing, perception and the secondary market
8. The experience economy: how hospitality, dining and wellness became frontline luxury battlegrounds
9. Creative leadership churn and the search for narrative clarity
10. Technology and AI: background infrastructure, not replacement for human creativity
11. Operational pressures: retail rents, regulation and the calculus of physical presence
12. Strategic playbook for 2026: clarity, discipline and relevance
13. What investors and market-watchers should monitor in 2026
14. Case studies and real-world examples
15. Risks and fault-lines to watch
16. Outlook: what stabilisation looks like in practice
17. FAQ

Key Highlights

• Kearney forecasts global luxury growth of 2–4% in 2026, describing the market as “normalising” after 2025’s recalibration rather than entering structural decline. Growth will vary widely by region, category and consumer segment.
• Jewellery and experiential luxury (hotels, dining, wellness) are the strongest categories, while ready-to-wear and some leather goods face low single-digit growth. Top 2% of luxury consumers now account for almost half of industry spending.
• Brands are shifting emphasis from rapid scale to creative clarity, consumer engagement and selective use of AI across forecasting, personalization and supply chains; creative leadership churn and retail pressures are reshaping strategic priorities.

Introduction

Luxury executives and investors are adjusting expectations for the sector’s next chapter. After a period marked by aggressive pricing, bold restructuring and a wave of creative appointments, the industry is settling into steadier trajectories. Kearney’s 2026 Global Luxury Industry Outlook labels 2025 as a year of recalibration and projects a modest upshift into stabilisation rather than freefall: a 2–4 percent market expansion next year, below some broader estimates but significant given evolving consumer behaviors, regional imbalances and category shifts.

This phase rewrites the assumptions that dominated the past half-decade: scale alone no longer guarantees reward; creative relevance and the ability to connect with the right consumers do. The report’s findings place a premium on differentiated product narratives, curated experiences and technological orchestration that operates quietly behind creative decision-making. The consequences reach beyond merchandising — they touch real estate strategy, leadership choices, resale ecosystems and the very definition of what consumers now consider “luxury.”

The following analysis breaks down the forces shaping this stabilisation, explains where growth will concentrate, unpacks consumer and pricing dynamics, and provides a lens for what brands and investors should monitor in 2026.

What Kearney means by "normalising": growth, adjustment and the end of hyper-acceleration

Kearney’s assessment rejects panic while acknowledging complexity. The consultancy frames the industry as returning to a healthier growth cadence after a period of overstretched price increases and structural experimentation. The 2–4 percent forecast for 2026 contrasts with wider industry projections of 3–5 percent, signaling caution rather than crisis.

Why the pullback from previous high-growth years? Three forces converged in 2024–2025: consumers pushed back on relentless price inflation, brands executed operational restructurings to streamline costs, and creative leaders rotated more rapidly than before to reset brand narratives. Those changes produced two durable effects. First, reckless expansion and blanket price hikes are being replaced by targeted assortment strategies. Second, firms are prioritising clarity over speed — refining what they make and why, and clarifying whom they are made for.

That shift has immediate commercial implications. Inventory planning becomes less about filling stores and more about ensuring the right pieces tell a coherent story. Marketing dollars flow toward high-impact, experience-led initiatives and bespoke client engagement rather than broad-based mass campaigns. The result: steadier margins, but also a tougher operating environment for brands that depended on volume or high growth multiples to justify valuation expectations.

Regional differentiation: three pillars and a ring of outperformance

Global luxury demand will continue to hinge on three major pillars: the United States, Europe and China. Each contributes scale and infrastructure, yet each evolves down different paths.

United States: a K-shaped consumer dynamic In the U.S., Kearney identifies a K-shaped recovery pattern. High-net-worth individuals remain robust purchasers, sustaining the upper end of luxury spend. Middle-income and aspirational consumers, though, are selectively withdrawing, sensitive to perceived misalignments between price and quality. The result is concentrated spending that rewards brands able to engage ultra-affluent clients through exceptional service, limited releases and personalised relationships.

This divergence reshapes channel strategies. Flagship stores in gateway cities continue to function as brand stages, while digital channels and private-client services cater to top-tier buyers. For aspirational consumers who remain engaged, brands must justify price points with tangible craftsmanship stories or accessible entry points such as smaller leather goods or collaboration capsules.

Europe: structural headwinds and selective resilience Europe’s outlook is fragile. Rising retail rents, more stringent regulatory oversight and a consumer base erring on caution compress growth potential. Tourists and high-net-worth locals still underpin luxury sales, but aspiration-driven purchases are being delayed or traded down. That makes pricing and store cost management critical. In historic luxury hubs — Paris, Milan, London — the premium for location persists, yet the economics of larger retail footprints are under renewed scrutiny.

China: stabilisation without a return to double digits China stabilised after 2024 volatility, but Kearney dismisses expectations of a return to double-digit expansion. Spending concentrates among wealthier cohorts and in categories tied to experiences and jewellery. Domestic tourism and rising interest in heritage brands support growth, yet the market’s previous rapid expansionary phase has given way to a more measured recovery. Brands that restore local relevance and offer experience-driven retail will see disproportionate benefits.

Markets to watch: Japan, Southeast Asia and the Middle East Outside the three giants, Japan, Southeast Asia and the Middle East stand out for potential outperformance. Japan benefits from tourism flows and appetite for premium retail encounters; brands that fuse hospitality and shopping will capture long-stay visitors and discerning domestic clients. Southeast Asia is witnessing a new wave of younger affluent consumers entering luxury for the first time — meaning lifetime value strategies can pay off if brands secure early loyalty. The Middle East continues to sustain robust demand from wealthy domestic buyers and regional travel, especially for high-ticket categories and bespoke services.

These regional nuances require differentiated strategies rather than a single global playbook. Firms must align assortments, pricing and messaging to local consumption patterns while preserving a globally recognisable, emotionally coherent brand.

Category winners and losers: jewellery and experiences lead, apparel lags

Kearney singles out jewellery and experiential luxury as the categories most likely to outperform. The reasons rest on perceived value durability, emotional resonance and the shifting way consumers allocate discretionary spend.

Why jewellery outperforms Jewellery benefits from a combination of attributes: perceived hard value, longevity, and a strong link to gifting and life moments. The report notes jewellery’s structural strength compared with leather goods and ready-to-wear, with brands reporting growth between 6 and 14 percent in 2025. This category’s tangible and, in many cases, investable qualities make it resilient when consumers look for purchases that retain meaning and worth.

Brands such as Cartier, Tiffany & Co. and Chanel’s fine jewellery business exemplify how emotional storytelling, provenance and craftsmanship combine to sustain demand. Jewellery also plays well across market cycles: it appeals to both very wealthy buyers and aspirational consumers seeking a single high-impact purchase.

Experiential luxury: the premium on feeling and memory Experiential spending — hotels, fine dining, wellness retreats — continued to accelerate. Consumers show a preference for purchases described as emotionally resonant or investment-worthy. Kearney projects hotels and fine dining to grow at around an 8 percent compound annual growth rate (CAGR) through 2028, with jewellery close behind at approximately 7 percent CAGR.

Brands are capitalising by expanding into lifestyle offerings: branded hotels, members-only dining concepts, and curated wellness programmes. These ventures do more than generate new revenue streams; they act as immersive brand ecosystems that deepen loyalty and justify premium pricing for related products.

Handbags and leather goods: pockets of strength amid pressure Handbags remain a relatively robust category, with prices having risen by as much as 10 percent across recent cycles. Scarcity strategies, signature silhouettes and the high-visibility nature of bags sustain desirability. Yet not all leather goods enjoy equal footing; overall leather and ready-to-wear categories face weaker momentum relative to jewellery and experiential offerings.

Ready-to-wear and footwear: cooling demand Apparel and footwear saw price declines — reported falls of 5 to 7 percent — and are forecast to remain in the low single digits for growth. Fast fashion’s cold embrace of aspirational quality, coupled with consumer judgements about value and durability, weigh on headline performance. Brands that rely on high turnover in apparel must rethink assortment depth and seasonality.

The category picture suggests brands should rebalance investment toward areas that amplify perceived long-term value and emotional connection.

Consumers: concentration of spend, cautious aspiration and evolving definitions of luxury

A critical finding: the top 2 percent of luxury consumers now account for almost half of total industry spending. That concentration elevates the strategic importance of ultra-high-net-worth relationships, white-glove services and bespoke offerings.

Price sensitivity and emotional priorities Kearney’s consumer research reveals palpable headwinds. Seventy-three percent of respondents reported that price increases had caused them to pull back on luxury spending. Thirty-six percent said they were buying less often or feeling less excited about luxury overall. Yet 63 percent still defined luxury primarily through quality and craftsmanship.

These figures highlight a paradox. Consumers remain attached to the traditional markers of luxury — careful construction, provenance, materials — but are increasingly selective. For them, the purchase decision includes an evaluation of whether the price aligns with value and personal meaning.

Different behaviours among product-led and experience-led buyers The report distinguishes two consumer archetypes with differing reactions to price and value pressures. Product-led shoppers, who prioritise physical goods, are more likely to reduce purchase frequency and turn to resale and second-hand platforms. Experience-led consumers, who prioritise hospitality, travel and dining, tend to switch brands or trade down within experience categories to maintain participation.

That divergence affects secondary market dynamics, brand loyalty and how new product launches are received. For example, a product-led buyer might defer a full-price purchase and instead seek a pre-owned version on a platform like The RealReal, Vestiaire Collective, or a brand-operated certified pre-owned channel. An experience-led buyer might downshift from a multi-night branded resort stay to a single-night curated dining experience while still remaining engaged with the brand.

Implications for loyalty and acquisition strategies Brands must refine client segmentation and prioritise precision engagement. High-value clients require white-glove continuity and invitations to private events, while younger aspirational cohorts need accessible entry points that convey craftsmanship without full-price commitment. Digital tools and data-driven CRM systems are crucial to identify when a client is ripe for an upgrade, a cross-category offer, or a bespoke service.

Pricing, perception and the secondary market

Price sensitivity now dictates not just whether a consumer purchases, but where they search for value. The secondary market’s prominence influences primary market strategies in three ways.

1. Price anchoring and perceived value: When consumers can access near-mint condition luxury on resale at a fraction of full retail, price anchoring alters expectations for new product prices. Brands must justify premiums through exclusivity, after-sales care, or experiences that extend beyond ownership.
2. Resale as entry and retention: For some younger consumers, pre-owned purchases act as formative brand interactions that later translate into full-price purchases. Brands such as Chanel and Hermès have seen a halo effect where visibility and desirability on resale support primary-market status, though those houses manage scarcity tightly to preserve value.
3. Certified pre-owned and circular initiatives: To capture resale value and remain relevant to product-led buyers, several maisons have launched certified pre-owned services. These channels allow brands to recuperate value, maintain control over authenticity and provide a bridge back to the primary market with refurbishment and trade-in programs.

Price-setting becomes a nuanced art. Too aggressive a markup risks pushing aspirational consumers entirely into resale. Too conservative a price risks eroding perceived rarity. The optimal strategy pairs disciplined pricing with clear communication about craftsmanship, limitedness and long-term value.

The experience economy: how hospitality, dining and wellness became frontline luxury battlegrounds

Experiential luxury’s momentum rests on the human need for meaning and memory. High-priced goods compete with curated experiences for the same discretionary spend, and consumers increasingly allocate dollars toward moments that cannot be replicated secondhand.

Branded hospitality and culinary ventures Lead indicators show hotels and fine dining growing at approximately 8 percent CAGR through 2028. Luxury groups and fashion houses are leveraging brand equity into hospitality: hotels that echo a house’s design language, on-site boutiques that carry exclusive capsule pieces, and restaurant concepts that extend a brand’s worldview.

Examples beyond execution include fashion brands partnering with established hospitality groups to create immersive spaces and private-member retreats. Such projects generate media attention, provide a testing ground for product concepts, and create loyalty loops where a guest’s emotional bond to a brand translates into future purchases.

Wellness and lifestyle integration Wellness offerings — from spa rituals to bespoke wellness retreats — allow brands to attach premium pricing to services that dovetail with lifestyle narratives. Consumers seeking emotional resonance prefer purchases that deliver measurable wellbeing or status through experience rather than accumulation of objects.

These moves also create diversified revenue streams. Hospitality and experience businesses are less seasonal than fashion and can offer predictable cash flow in years when product demand softens. For investors, the experiential pivot suggests a revaluation of brand potential beyond traditional merchandising margins.

Creative leadership churn and the search for narrative clarity

Kearney highlights a striking statistic: luxury houses experienced three times as many creative director changes in 2025 as in previous years. That surge reflects a broader instinct to reinvigorate brand narratives and reassert distinct product directions.

Why such turnover matters Creative directors shape the aesthetic compass of houses, drive collection storytelling and create touchpoints that translate into commercial performance. Frequent changes indicate brands responding to a perceived drift or to a mismatch between what the market expects and what creative leadership is producing.

The impact of creative changes is double-edged. A successful appointment can re-energise sales and perception — consider the way an astute director reinterprets heritage codes for new buyers. A misaligned change, however, risks alienating core clients and diluting the brand’s essence.

Strategic implications for boards and executives Boards and executive teams face a higher-stakes calculus in hiring creative talent. The choice must balance short-term commercial returns with long-term brand coherence. Increasingly, brands are insulating creative freedom while tying performance to clearly defined commercial and narrative objectives. Brands that succeed maintain a consistent underlying heritage while allowing designers to bring contemporary interpretations.

Technology and AI: background infrastructure, not replacement for human creativity

AI is now embedded across the luxury value chain. Kearney’s report underlines the technology’s role in forecasting, design ideation, supply chain efficiency, customer service and personalization. Notable findings include that 90 percent of luxury fashion executives view AI-driven personalization as essential, and an estimated 60 percent of consumers are expected to use AI shopping agents by 2026.

Where AI delivers immediate advantage

• Forecasting and inventory optimisation: Predictive models reduce stock-outs and markdowns, a critical benefit when brands intentionally narrow assortments.
• Personalization at scale: AI enables tailor-made product recommendations, private-client offers and hyperrelevant marketing while preserving exclusivity for VIP segments.
• Design augmentation: Generative tools accelerate ideation, enabling design teams to test variations rapidly. Yet Kearney cautions that competitive advantage will favor brands that automate background processes while keeping creative decisions human.

Human creativity remains central Industrialising AI does not equate to outsourcing creative judgment. Consumers still prize the human touch — the artisan’s hand, the unique voice of a creative director, the curated experience at a brand-owned hotel. Brands that treat AI as an enabler rather than a substitute will produce better outcomes: faster, smarter operations that still reflect a human-authored point of view.

Ethics, transparency and consumer trust As AI becomes more involved in personalization and design, brands must manage data ethics and maintain clarity about how AI impacts recommendations and product curation. Customers who are invested in craftsmanship may balk if they feel product narratives are manufactured by algorithms rather than grounded in authentic artisanship.

Operational pressures: retail rents, regulation and the calculus of physical presence

Retail remains a strategic battleground. Rising retail rents and tighter regulatory regimes — particularly in parts of Europe — create pressure on the economics of large flagships and broad store networks. Brands reassess the purpose of physical space.

From stores as transaction points to brand theatres The most successful physical spaces function less as simple transactional outlets and more as brand theatres: immersive environments designed for curation, service and moments. Fewer square meters can produce better outcomes if the remaining footprint amplifies narrative, facilitates premium services and acts as a stage for experiential programming.

Regulation and compliance costs European regulatory pressures — whether related to sustainability standards, advertising restrictions or labour — add another layer of operational cost. Compliance requires investment in governance, traceability and reporting infrastructures. For some brands, those costs are a chance to demonstrate leadership; for others, they amplify the need to streamline operations and control fixed costs.

Restructuring for resilience Many houses undertook operational restructuring in recent years to right-size their cost bases. That process often included supply chain consolidation, vendor rationalisation and centralising of certain back-office functions. The payoff is a more agile organisation able to pivot between channels and markets with less friction.

Strategic playbook for 2026: clarity, discipline and relevance

Kearney’s prescription for 2026 is pointed: scale and speed will not suffice. Brands that win will combine three attributes — clarity in what they represent, discipline in execution and relevance sustained over time.

Key strategic moves

• Prioritise core narratives: Commit to storytelling that aligns product design, retail experiences and communications. Ensure every customer touchpoint reinforces why the brand matters.
• Rebalance assortment investment: Shift capital toward categories with durable value — jewellery and experiential offerings — while pruning underperforming or undifferentiated fashion lines.
• Rationalise retail real estate: Turn stores into high-impact theatres; invest in aftercare, private-client services and appointment-driven retail that justifies rent premiums.
• Industrialise AI quietly: Automate forecasting, personalization and supply chain transparency while keeping creative choices in human hands. Measure impact and iterate.
• Embrace circular models: Develop certified pre-owned channels, trade-in programs and refurbishment services to capture secondary market value and retain customer relationships.
• Double down on high-value clients: Build bespoke services, private previews and tailored experiences that increase share-of-wallet among top-tier spenders.

Smaller houses and independent designers can compete by leaning into niche provenance, craftsmanship, and storytelling that resonates with specific audiences. Their agility becomes an advantage when larger groups move cautiously.

What investors and market-watchers should monitor in 2026

For those allocating capital or tracking sector momentum, the next year presents several high-leverage indicators:

• Category performance: Jewellery and experiential lines should outpace ready-to-wear. Track CAGR, comp-store sales and margin trends across these groups.
• Creative stability and appointments: Watch for creative director hires and departures; major changes often presage important strategic shifts.
• AI adoption metrics: Monitor investments in personalization platforms, inventory optimisation tools and the emergence of brand-operated AI shopping agents.
• Regional recovery signals: China’s slide back into stability, Japan’s tourism rebound and Southeast Asia’s rising young affluent cohort are early indicators of durable demand shifts.
• Secondary market growth: Volume and average transaction values on certified pre-owned channels signal changing consumer choices and the effectiveness of brand circular programs.
• Retail footprints and rent negotiations: Flagship resizing, store closures, or conversions into experience spaces will reflect real estate strategy shifts.
• Margin resilience: As price sensitivity rises, maintaining or expanding margins through operational efficiency becomes a marker of management competence.

These signals will reveal whether stabilisation is translating into profitable, sustainable business models or temporary equilibrium before further disruption.

Case studies and real-world examples

The report references industry-wide phenomena; the following examples illustrate how those forces play out in practice.

Creative rebooting at major houses Brands that executed creative director changes in the last two years aimed to recapture narratives and inject fresh energy. When a storied house appoints a new creative leader, the immediate tasks are to reconnect with heritage codes, define a modern point of view, and generate pieces that convert aspirational interest into purchases. Successful transitions are typically staged: capsule collaborations or limited-run collections create buzz while broader product direction is recalibrated.

Jewellery’s resilience: established and independent maisons Traditional jewellery maisons that emphasise provenance and craftsmanship have seen steady growth. For instance, established names that spotlight artisanal techniques, rare stones and bespoke services draw clients seeking lasting value. Independent ateliers that offer customisation and heritage-centric narratives also attract affluent buyers who prize uniqueness.

Brand hospitality as a loyalty engine Luxury fashion houses that extended into hospitality — opening hotels with interior motifs and dining experiences that echo their brand — created immersive platforms for deeper client engagement. These ventures function as long-term value creators. A guest who experiences a brand’s hospitality offering becomes more likely to invest in its products because the relationship shifts from consumer to patron.

Certified pre-owned and circular models Some brands launched certified pre-owned services to capture secondary market value and maintain authenticity control. These channels serve both commercial and reputational goals: they recapture revenue, monitor product life cycles, and position brands as stewards of longevity rather than sellers of disposability.

AI in personalization and supply chain Leading firms piloted AI systems that improved demand forecasting and enabled precision pricing. AI-powered clienteling tools allowed sales associates to surface personalised suggestions based on a client’s purchase history and life events. Brands that combined these tools with human curation delivered higher conversion rates and deeper client affinity.

Risks and fault-lines to watch

Stabilisation does not mean the sector is without risk. Several fault-lines could derail the narrative.

Overreliance on the ultra-wealthy With the top 2 percent of consumers accounting for nearly half of spending, brands that overly concentrate on the ultra-wealthy risk missing longer-term resilience. Economic shocks that affect financial markets can quickly translate into lower discretionary spending among top clients.

Misreading price elasticity Pricing that outpaces perceived value will push aspirational customers toward resale or away from engagement entirely. Brands must manage scarcity and premiumization without alienating new customer cohorts.

Headcount and creative fatigue Frequent creative turnover can produce brand dissonance. Boards and executives must balance the need for fresh direction with institutional memory and continuity.

Regulatory and sustainability compliance Failure to meet evolving regulatory standards — particularly in Europe — risks fines, reputational damage and lost access to important markets. Sustainability claims need robust proof points to avoid accusations of greenwashing.

Technology backlash Consumers increasingly scrutinize data usage and transparency. Over-personalization that feels intrusive will create backlash rather than loyalty. Brands must adopt clear policies and communicate how customer data is used to enhance the experience while protecting privacy.

Outlook: what stabilisation looks like in practice

Stabilisation in luxury means slower, more selective growth concentrated in certain categories and regions. It means a premium on story and service rather than on volume. It also means that the luxury business will reward companies that marry operational discipline with uncompromised creative vision.

Practically, expect to see:

• A proliferation of branded experiences designed to deepen emotional connection.
• Greater investment in jewellery design and manufacturing as a revenue engine that holds value.
• Continued growth in certified pre-owned and circular services that capture secondary market value.
• Widely adopted AI systems that operate behind the scenes to optimise inventory, forecasting and personalization, with final creative judgement retained by humans.
• A cautious expansion of physical retail into theatrical, experience-first formats rather than routine store openings.

These dynamics produce an industry that is simultaneously more selective and, in many ways, more sustainable. Stability derives from focusing on what creates enduring value for clients rather than chasing short-term top-line growth.

FAQ

Q: How should smaller luxury brands respond to this stabilisation? A: Smaller brands should lean into distinctiveness: authentic craftsmanship, clear storytelling, and tight community-building. Agility lets them experiment with branded experiences and direct-to-consumer models without the burden of large retail footprints. Partnerships with hospitality or culinary platforms can amplify visibility without heavy capital investment.

Q: Will luxury prices continue to rise despite consumer pushback? A: Price pressure will vary by category. Jewellery and experiential offerings can sustain higher premiums because of perceived value and emotional resonance. Ready-to-wear faces more headwinds. Brands will employ selective pricing strategies: maintaining or increasing prices on signature, limited pieces while offering accessible entry points to bring in new customers.

Q: Is the secondary market a threat to primary sales? A: The resale market both threatens and supports primary sales. It threatens when consumers buy near-new items instead of full-price pieces; it supports when resale acts as an entry point that builds brand affinity. Brands that operate certified pre-owned channels can capture secondary value and steer resale dynamics.

Q: Will AI replace designers and creative teams? A: AI will augment many parts of the process — speeding ideation, improving forecasting and enabling personalization — but it will not replace creative directors and artisans. Competitive advantage accrues to houses that use AI to streamline operations while preserving human-led creativity and narrative judgment.

Q: Which markets should investors overweight in 2026? A: Investors should look closely at jewellery businesses, experiential hospitality tied to strong brands, and markets like Japan, Southeast Asia and the Middle East that show outperformance potential. Watch for brands with disciplined retail strategies and strong private-client infrastructures in the United States and China.

Q: How will retail strategies change? A: Retail will move toward fewer, higher-impact locations emphasising curated experiences, after-sales services and appointment-driven shopping. Flagships will act as brand stages, while digital and private sales channels will handle a growing share of transactions.

Q: What role does sustainability play in this stabilisation? A: Sustainability remains a strategic priority as consumers and regulators demand traceability and responsible sourcing. Transparent supply chains, certified materials and circular initiatives strengthen brand credibility and can support premium pricing when claims are substantiated.

Q: If growth is only 2–4%, can margins still improve? A: Yes. Margin improvement will depend on cost discipline, inventory optimisation, higher-margin categories (jewellery and experiences), and efficient use of AI to reduce markdowns. The focus shifts from absolute sales growth to margin-resilient revenue.

Q: How will luxury houses manage creative flux without losing brand identity? A: Successful houses couple new creative appointments with strong institutional guardrails: clear heritage codes, product baselines, and commercial KPIs that guide collections. Phased rollouts and capsule collections allow testing before full implementation.

Q: What should consumers expect when shopping luxury in 2026? A: Expect more curated experiences, stronger storytelling about craftsmanship, more accessible pre-owned channels, and personalized digital touchpoints driven by AI. Physical stores will emphasise service and immersive encounters, while entry-level product ranges will keep aspirational buyers connected to brands.

This new chapter demands that brands be deliberate about what they stand for, disciplined in how they allocate capital, and relentless in delivering relevance to the consumers who still drive the bulk of luxury spending. Stabilisation is not stagnation; it is a test of strategic coherence and the ability to create lasting value.