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Key Trends & Predictions- The European Business Review

This year, October 8th will mark a historic moment as World Luxury Day, a professional holiday for all those involved in the luxury industry, is added to the global calendar.  This event is the initiative of the World Luxury Chamber of Commerce (WLCC), a global network for leading luxury brands that fosters collaboration and business growth. As we witness the birth of a global celebration of craftsmanship, excellence, and innovation, which World Luxury Day aims to be, it is exciting to look into the future and see which luxury trends will define it soon.

Trend 1. The Rise of Ultra-Personalized Goods

Luxury watches

The luxury market is already familiar with engraving watches or monogramming bags; it’s no longer surprising, and it can be considered the first iteration of personalization. However, it is being replaced by ultra-personalization (or personalisation 2.0), a higher level of customer orientation in the luxury segment. In symbiosis with AI, it is possible to tailor a product to the even more precise and personal needs of a particular customer.

Retailers are investing heavily: Saks Global reported significant revenue growth from machine learning-based homepage personalization in 2025. Each visitor now receives a personalized storefront experience tailored to their preferences and browsing history.

BCG finds that leaders in personalization significantly outperform their competitors: companies that deeply embed AI-based personalization into their customer strategy and assortment consistently achieve higher growth and customer loyalty.

Healthy sleep and a light body have officially become the new luxury. Overloaded with information, stress, and exhaustion, luxury consumers are seeking offerings that go beyond the traditional five-star resort experience to restore their resources more deeply. Artificial intelligence is also a key factor in this regard.

A growing share of HNWIs are redirecting discretionary spending towards cutting-edge wellness, biohacking, and regenerative health.

Luxury hotels and resorts are adapting, with Four Seasons and Aman expanding their wellness residences and retreats, which focus on stress relief, mindfulness, and longevity. Meanwhile, LVMH’s beauty portfolio is increasingly emphasizing “skin longevity”, positioning beauty not just as a cosmetic but as a means to age gracefully.

McKinsey reports highlight that younger luxury consumers are prioritising well-being alongside exclusivity and sustainability as key factors in their purchasing decisions, which is consistent with a cultural shift in which owning a yacht signals less status than having the best years of one’s life, characterised by vitality, energy, and quality of experience.

Luxury is expected to continue to invest in bio-resorts, precision nutrition, and high-end wellness technologies.

Wellness is becoming a new form of exclusivity, something that only the most discerning can fully access.

Trend 3: AI-Powered Luxury Services

AI will move from the backstage to the forefront of luxury, transitioning from an auxiliary tool at certain stages to an integral part of the entire process. For example, LVMH has strengthened its partnership with Google Cloud to develop centralized AI platforms that optimize every aspect, from design to logistics.

AI-Powered Luxury Services

At the customer level, AI co-pilots are being tested and progressively introduced (piloted) in select maisons (Tiffany, Louis Vuitton, Sephora), offering sales consultants intelligent suggestions based on customer history and preferences. These tools free up human employees to focus on the personal connection that is the essence of luxury, while AI does the heavy lifting of analysis and forecasting.

A June 2025 BCG report argues that generative AI is the next frontier of luxury experiences, capable of enabling adaptive storytelling, personalized marketing, and immersive brand journeys.

Trend 4: Sustainability and Digital Product Passports (DPPs)

Sustainability is becoming more than just an aspirational initiative; it is also becoming a regulatory imperative. For example, the EU’s Ecodesign for Sustainable Products Regulation (ESPR) will require Digital Product Passports (DPPs) for textiles by 2026–2028, detailing provenance, materials, and recyclability. Far from a compliance burden, DPPs can double a product’s lifetime value through resale, repair, and circular services, while also setting a global standard for traceable, sustainable luxury.

The trend toward sustainable regulation is expected to grow globally.

World Luxury Day also emphasises responsible luxury, with a strong commitment to ethics and sustainability.

Trend 5: Resale and Circular Luxury

Despite scepticism about the development of the secondary luxury market, data suggest that the retail trade of luxury goods through resale is growing rapidly.

For example, the Washington Post reports that China’s secondhand luxury market grew by 35% in 2025, even as the broader luxury sector saw a slump. This growth is attributed to rising interest among millennials and Gen-Z shoppers purchasing pre-owned Gucci, Prada, Hermès, and other high-end brands via platforms like ZZER and Super Zhuanzhuan.

Circular luxury allows fashion houses to attract younger buyers, expand brand control, and implement sustainability into their business models. The success of the future will be measured not only by sales, but also by the extended life cycles of a brand’s products.

Trend 6: Minimalism and Quiet Luxury

Another trend associated with Gen Z, who are shaping the luxury market, is quiet luxury, which contrasts with “flashy” branding and flashy logos.

For example, according to TheRealReal’s Resale report, Gen Z spending on quiet luxury brands, such as The Row and Bottega Veneta, rose 18% year-over-year. In comparison, search volumes increased 29% among this demographic.

The silent luxury goods market is projected to continue to increase, according to Polaris Market Research.

This signals a more profound shift: luxury as authenticity and meaning, not spectacle.

Trend 7: Philanthropy

Philanthropy is becoming an integral part of powerful luxury brands. For example, LVMH’s support of art and heritage reflects how luxury is reimagining itself as a cultural patron.

For the future elite, actual status lies not only in what they own but also in what they experience and preserve for others, as well as the legacy they are entrusted with.

luxury

World Luxury Day

These emerging trends highlight not only where the luxury sector is headed but also why World Luxury Day is the perfect moment to celebrate both heritage and innovation, bringing together leaders, creators, and consumers to shape the future of refinement. It is an occasion that unites the community, inspires dialogue, and transforms the way we experience and define luxury for the years to come.

“I envision World Luxury Day as a global celebration where each sector showcases its uniqueness: fashion with shows or collaborations; hospitality with special packages; real estate with property viewings; and haute cuisine with tastings. The main goal is to honor craftsmanship, innovation, and unique experiences, but first and foremost, it’s a celebration for the people working in the luxury industry,” Alexander Chetchikov, President, WLCC.

Learn more about World Luxury Day:



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