Luxury brands today are navigating two markets: serving an older, affluent base while preparing for the younger generations who are redefining what “luxury” means.
The Affluent & High-Net-Worth Buyer (AHNW): The current backbone of the luxury market remains the affluent and high-net-worth (AHNW) consumer, who is typically 55+ and highly educated.
AHNW consumers:
- Hold the majority of U.S. wealth.
- Saw 9.1% growth in wealth and 7.6% growth in population last year.
- Tend to become more conservative with spending as they approach retirement.
They still have the buying power, and they’re loyal to heritage, craftsmanship, and reliability. But they’re less likely to spend freely on products that don’t deliver lasting value or emotional reward.
Short term:
This audience still matters. They have the money now.
Long term:
As they age, their spending will shift toward experiences over material goods. We need to begin looking at the next generation of luxury buyers.
The Rise of Gen Z and Millennial Luxury
By 2030, Gen Z and Millennials will make up 80% of the luxury market and by 2040 will control $74 trillion in wealth, the largest in world history.
But this generation approaches luxury differently. They buy for image and identity, with luxury purchases showing their status. They expect innovation, cultural relevance, and digital connection. And notably, Gen Z makes up 22% of the current AHNW households and they over-index for luxury purchases.
For luxury home brands, this means messaging needs to evolve for this new generation:
- The brand story must be authentic.
- The brand must show innovation in their products both visually and digitally.
- The brand experience must feel personal.
How to Win Across Both Audiences
- Lead with a compelling narrative. Brand heritage and craftsmanship are surging in importance. Tell your story, don’t just show your logo.
- Balance tradition with innovation. Continue to serve the established luxury buyer while building relevance with younger ones through digital storytelling, innovative products and intentional experiences.
- Design for emotion. Whether it’s a kitchen appliance or a bathroom fixture, it should evoke pride, aspiration, and belonging for the consumer.
Together, these two audiences represent both the stability and future of luxury. Winning in this space means honoring the tradition of luxury while also embracing change.
Because the new definition of luxury isn’t just what you own, it’s how it makes you feel.
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