Following a record year in 2022, which saw a massive post-Covid rebound, 2023 saw a relative slowdown in growth, particularly in the personal luxury goods and fine wines and spirits sectors.

Luxury spending continued to grow around the same pace as last year. Despite uncertainty, personal luxury goods posted another year of growth.

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Luxury companies are facing a pivotal moment as they navigate the shifting landscape of the luxury market. In early 2024, lower growth rates have prompted a reevaluation of strategies, urging luxury brands to adapt to emerging trends in order to maintain their market relevance. Recognizing the transformative dynamics at play, these companies must acknowledge and integrate three primary trends into their approach.

• First, the influence of online touchpoints on consumer purchasing decisions has become paramount, necessitating a robust digital presence and tailored online experiences.
• Second, there's a noticeable shift in consumer preferences towards environmentally conscious brands, compelling luxury companies to prioritize sustainability and embrace eco-friendly practices.
• Lastly, the emergence of technologies (such as the Generative AI) presents an unprecedented opportunity for innovative brand storytelling and immersive consumer engagement. By aligning their strategies with these evolving trends, luxury companies can not only navigate through the current period of lower growth but also position themselves for sustained success in the future luxury landscape.

• The luxury industry is undergoing a paradigm shift
• Five success factors for luxury business transformation that leverage data & AI
• A three-step approach to data & AI transformation in luxury