The luxury market is currently experiencing a slowdown, as evidenced by Morgan Stanley's recent revision of its 2026 luxury growth forecast, which has been reduced to 2.5% from an initial estimate of 4–5%. Additionally, a report from BoF indicates that 80% of the sector’s growth between 2023 and 2025 is expected to derive from price increases rather than overall sales volume.

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Despite this downturn, consumers continue to show a willingness to spend in the luxury segment. According to new data from MillionaireVue, 35% of high-net-worth individuals (HNWIs) plan to increase their spending on fashion accessories, with 83% affirming they will always purchase from premium or luxury brands. Furthermore, values are playing an increasingly significant role; 47% of HNWIs prioritize brands that remain true to their values.

The notable source of future growth is expected to come from Generation Z, individuals aged 14 to 29. Research from IMD forecasts that by 2029, Gen Z spending will exceed that of the Baby Boomer generation, driven by a projected $15–20 trillion wealth transfer. BCG estimates that Gen Z's share of global luxury spending will expand to 25% by 2030, indicating they will represent one in four luxury consumers within the next four years.

Remaining stagnant poses a serious risk for luxury brands, as their consumer base is contracting. Brands that do not engage younger audiences may become irrelevant in a market where these groups are redefining what luxury signifies.

While growth rates are declining, HNWIs continue to intend to spend. MillionaireVue data indicates considerable intent to increase expenditures across several categories: 43% on clothing and shoes, 37% on jewelry and watches, and 35% on fashion accessories. Notably, nine out of ten HNWIs report that they consistently purchase their clothing and shoes from premium or luxury brands, with similar figures for accessories and watches.

Particular attention is drawn to HNWI women aged 18 to 30, who stand out as significant consumers in the fashion accessories market. Of this group, 91% buy exclusively from premium or luxury brands, and nearly 50% plan to boost their spending in this domain. Engaging this demographic effectively will require brands to grasp their motivations and expectations.

Three crucial areas for brands seeking to earn the consideration of HNWIs have been identified from the MillionaireVue Q2 2026 findings:

1. Authenticity: 47% of HNWIs emphasize the importance of brands remaining true to their values.

2. Customization: 32% are interested in product customization when selecting between options.

3. Technology: Features such as product live streams resonate more with HNWIs aged 18–30, as 31% express interest compared to 19% among those aged 31 and above.

To capitalize on the growing appetite for luxury, brands must focus on the following strategies:

- Target female HNWIs aged 18–30, as they are among the most likely to increase their luxury fashion expenditures.

- Develop a digital-first marketing strategy aimed at younger HNWIs, leveraging livestreaming, user-generated content, and flexible payment methods.

- Rethink the concept of prestige, which remains a key driver for luxury fashion at 46%. It is essential for brands to evolve their understanding of what prestige means to today's affluent consumers.

This evolving landscape requires brands to continuously adapt to the changing preferences of their audience.