Beyond the (Price) Tag: How Marketers Can Boost Consumers’ Love for Luxury This Golden Quarter

The luxury market, which determines what consumers consider the pinnacle of desirability, is entering a surprising period of vulnerability. After five years of outpacing the broader economy, 2024 saw a 2 percent contraction, with 50 million consumers either opting out or being priced out amid economic uncertainty.

Even luxury consumers are feeling the strain of inflation. With 80 percent of the recent growth across luxury goods coming from price hikes rather than volume, brands have no room to lean further on pricing strategies. At the same time, global economic headwinds such as tariffs, slowing tourist spending, and regional disparities are compounding the pressure on the sector.

Luxury marketers can’t move the needle on economic policies or global trade, but they can restore luxury brands’ desirability through campaigns that provide the emotional lift to leap cost hurdles.

To shed light on these shifts, Ogury carried out new research in May 2025 across three major luxury markets: the United States, Italy, and Japan. Surveying more than 7,500 consumers, the study offers a detailed view into how perceptions of luxury are changing and what now drives desirability.

The findings reveal just how much the ground has shifted beneath luxury brands, and why a simple return to past formulas won't be enough. Some may be tempted to turn inwards and focus only on polishing brand image to overcome these challenges. However, in a sector driven less by necessity or function and more by desire, taking the time to understand what luxury means to consumers in today's market will offer meaningful rewards. With this deeper appreciation of the motivations and psychological triggers that stimulate demand, brands have an opportunity not just to adapt, but to redefine their role in the next era of luxury.

The New Codes of Desire for US Luxury Consumers

One of the key issues for the sector is the erosion of perceived value in luxury goods and services. The research found that almost 40 percent of U.S. luxury shoppers have become more critical of the value they receive. A quarter (25 percent) feel luxury goods have become overpriced, while 14 percent expect more in return for what they spend. This price sensitivity is reflected in the channels that are defying the downturn (travel, retail, and outlets), and the growth of entry-level luxury categories such as beauty and eyewear.

Rather than relying on traditional markers of prestige, which encourage consumers to adopt others’ status symbols, brands should focus on providing avenues for self-expression. For 30 percent of U.S. luxury consumers the appeal of something unique is a decisive factor in their purchases, while one in three would spend more for exclusive, limited-edition items.

For marketers, this can chart a clear path forward. Campaigns should emphasize the allure of rare and personalized items, with creatives that adapt to consumers’ characteristics and broader context on the fly. And interactive media, for instance, could go further by allowing them to customize the item within the creative, directly connecting the campaign to the sense of self-expression that now defines luxury.

The Shifting Drivers of Desire: From Ownership to Experiences

Luxury consumers today are less concerned with what they own and place greater importance on how they live. As such, brands that highlight the experiences their products provide and how these fit into a luxurious lifestyle can enhance their appeal. According to the research, nearly a third (32 percent) of U.S. consumers would engage with a luxury brand that offers them something they’ve never lived before. Not owned, lived.

While meaningful experiences are an important motivator, consumers also place significant value on brand heritage. Thirty-six percent say this justifies higher spend, while 34 percent are drawn towards “timeless” designs. A strong heritage is a valuable asset which can act as a marker of history, values and traditions, reassuring consumers of its stability and resilience in this age of unpredictability.

This can be leveraged in marketing through storytelling that evokes nostalgia and emotional connection. It transforms the luxury consumer from a buyer into a custodian or brand advocate, especially when their desire for uniqueness and lifestyle alignment is met. Patek Philippe’s iconic slogan captures this perfectly: “You never actually own a Patek Philippe. You merely look after it for the next generation.” It conveys history and tradition, while positioning the watch as an enduring, rare investment that connects generations.

Alongside heritage, gifting remains a powerful force in luxury. Over half (52 percent) of consumers buy luxury as a gift, to celebrate either themselves (17 percent) or someone else (20 percent). Successfully marketing to this substantial cohort of luxury gifters requires distinct strategies: campaigns tailored to gifting should differ from those aimed at self-purchase, with personalized services and experiences that make a gift or personal purchase feel special.

Luxury marketers will have spent much of this year going back to the drawing board to recapture the soul of their brands. Yet it’s not just individual brands that have changed; it’s the very concept of luxury itself that has evolved. Consumers have shifted from ownership to experience, and from prestige to customization. The brands that succeed in capturing the emotion and meaning behind this new definition will secure their place at the peak of cultural desire.

Anne Piérard-Marcombe is sales director, global brands, Ogury, a global ad tech company.