High-spending consumers even more prone to Retail purchases in 2024

The high-spending consumers, estimated to be approximately 20 million, continue to demonstrate a significant propensity to luxury product purchases

Forty percent of “True-Luxury” consumers, or those who spend at least Euro 5,000 each year on luxury goods, expects to increase their purchases in 2024. It is the latest survey by Altagamma to illustrate a very positive picture for such customers.
 

A bright outlook for Fashion & Luxury brands

The “Altagamma Consumer and Retail Insight” panel is at its ninth edition and reveals extremely positive data for Italian luxury brands. The most high-spending consumers, approximately 20 million out of a total of 370 on a global level, continue, in fact, to demonstrate a good propensity to purchase. Forty percent of them, with Euro 5,000 per year spent on luxury goods, even expects to increase their spending in 2024.

Matteo Lunelli, president of the committee, states: “the high-end consumer has a propensity to spend that is growing in double digits. The number of retail stores is stable, but with a significant increase in dimensions and the creation of unique experiences always more personalized and exclusive. Consumer habits, values and omni-channel shopping methods are changing, while new strategies of collaboration and consolidation downstream and upstream the production chain are affirming themselves”.

Geographic and generational trends

In this context, China’s restart emerges clearly, with an increase of 50% compared to the average propensity to purchase “True-Luxury”. The United States remains the focus, with a +40% on the average, and the Middle East is promising, with a market valued at approximately Euro 15 billion in 2023 and expected to reach a share of 30-35 billion in 2030.

If we then consider experiential luxury, which in 2023 should make up 57% of the total value of the market, the generational question becomes central. In 2022, young people, Millennials and Gen Zs, have represented a value of over Euro 200 billion for the industry, double compared to 2016. A number destined to double by 2026, when these customers will represent 75% of the market.

The study, therefore, points out how brands must necessarily consider the characteristics that make this target stand out from that of the “seniors”, researching diversified engagement strategies and a personalization of the offer and the communication. Goals to reach which, without a doubt, the solutions and Bizeta services can be extremely helpful.