Against all odds: Luxury records an unexpected performance at the end of the year

While the luxury sector has experienced some real turbulence this year, a study is shaking up the forecasts. According to the latest Saks Luxury Pulse survey, 82 percent of affluent consumers plan to increase their spending this holiday season. This almost unexpected burst of optimism offers new insights into the outlook for the sector. But what are the products and experiences that are most appealing to these discerning consumers? Find out in this article.

Solid spending outlook

While major luxury brands have recently reported revenue declines, the Saks survey shows notable resilience among luxury consumers. According to the data, 82 percent of luxury holiday shoppers plan to spend the same or more on gifts compared to last year, up from 75 percent the year before. This indicates renewed consumer confidence, driven in part by a more positive outlook on the economy and their personal finances. However, 18 percent of respondents said they would cut back on spending this year, WWD reported, reflecting continued caution among some.

For those not planning to celebrate the holidays, the survey also revealed a positive trend: 65 percent of respondents in this group plan to maintain or increase their spending on luxury items in the next three months compared to the previous quarter — a promising indicator of continued interest in luxury goods.

A trend towards anticipated shopping and a change in purchasing behaviour

A notable trend this season is early holiday shopping. The survey found that 70 percent of respondents plan to start shopping before Thanksgiving, a US holiday that historically honours bountiful harvests, up 14 points from last year. The shortened holiday season, with five fewer days between Thanksgiving and Christmas, is likely pushing consumers to shop earlier. Notably, Millennials plan to shop slightly later than their Gen X and Baby Boomer counterparts, a factor that luxury retailers could incorporate and leverage in their marketing strategies.

Renewed interest in travel

In addition to gift shopping, luxury consumers are showing a strong interest in travel. More than half of respondents plan to travel this holiday season, and more than a third expect to travel more than last year. This trend reflects a growing preference for luxury experiences—trips, events and unique moments—that continue to drive spending among affluent consumers in the post-pandemic era.

Holiday shopping preferences: Digital, but first, experience

Consistent with recent trends, 64 percent of luxury consumers prefer to shop online for the holidays, with this preference rising to 70 percent among Millennials. However, for more sensitive items like home decor and jewellery, consumers prefer to shop in-store, highlighting the importance of a seamless omnichannel experience. Luxury brands looking to capture seasonal sales will benefit from a strong digital presence supported by personalized in-store experiences.

Gift preferences: A gendered look at wish lists

The Saks survey also highlighted differences in preferences between men and women. For women, beauty products and leisure-related items are among the most popular gift choices, while men are primarily interested in electronics, beverages and shoes. When it comes to their own wishes, women prefer fine jewellery, while men favour clothing. However, both groups show particular interest in experiences, such as theatre tickets, travel packages or spa passes — further evidence of the growing appeal of experiential gifts.

Luxury sector challenges remain, but with optimism for the holidays

While Saks’ consumer enthusiasm is evident, many luxury players continue to face countervailing trends. Giants like LVMH, Richemont and Kering have reported revenue declines in their latest financial statements, attributing this to reduced demand in regions like Asia Pacific, particularly China, and changes in consumer habits. However, the holiday season appears to be an exception, with enthusiastic consumer spending sentiment, particularly in the US.

Emily Essner, Saks' chief marketing officer, noted that "luxury has had a tough year, but the holidays are different." For luxury brands, the seasonal uptick could provide a welcome boost as consumers focus on celebrating and gifting.

In conclusion: a holiday season marked by optimism and adaptation

The Saks Luxury Pulse survey provides a rare note of optimism in a challenging year for the luxury sector. With affluent consumers ready to spend on gifts, travel and experiences, the holiday season could provide a boost to luxury retailers. By adapting to advance purchase trends, prioritising omnichannel experiences and catering to consumers’ experiential preferences, luxury brands are well-positioned to capture a share of the holiday budget.

This article originally appeared on FashionUnited.FR. It was translated to English using an AI tool called Genesis and edited by Rachel Douglass..

FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com