Luxury Sector: The Return of Timeless Growth

The global luxury market is poised for a renewed upturn from 2025 onward. With global demand expected to expand 3–6% annually, easing tariff pressures and a gradual Chinese rebound create a compelling re-entry point for investors. 

Luxury brands are entering a new phase of strategic evolution — reaffirming heritage, elevating craftsmanship, and strengthening direct client relationships through data-driven personalization and digital engagement. Operational discipline and diversified portfolios are reinforcing profitability even in a slower macro environment.

A powerful structural catalyst is emerging from the second hand market, as brands reclaim value from the pre-owned market. Initiatives such as Gucci’s trade-in model, Rolex’s certified pre-owned watches, and Balenciaga’s Reflaunt partnership are boosting sustainability, customer lifetime value, and margins.

Digital transformation is reshaping the business model. With technology budgets now reaching 3–5% of revenue, luxury houses are investing in AI-driven personalization, omnichannel ecosystems, and agile supply chains — enhancing efficiency while deepening emotional connection with clients.

Meanwhile, the global population of high-net-worth individuals is projected to rise by over 50% by 2030, underpinning long-term demand for premium goods and bespoke experiences. This expanding affluent base cements luxury as a durable compounder — blending resilience, pricing power, and cultural relevance into one of the most attractive opportunities in global equity markets today.