LONDON — Since the pandemic, ultra-high-net-worth individuals (UHNWIs) have fueled luxury sales as average consumers slowed down. But now, that elite enthusiasm is fading.
A new Bernstein report, based on research from Agility Strategy, reveals that even the wealthiest are dialing down their spending. Economic uncertainty, volatile markets, and geopolitical shifts are weighing heavily on their confidence.
🛑 Even UHNWIs Are Less Optimistic
For the first time, rich individuals are less optimistic than their merely affluent peers. That’s a stark contrast from past surveys where they led the spending charge. In particular, Americans are showing deep pessimism, with luxury demand in the U.S. taking a major hit.
📉 The Shift in Priorities
While fashion and ready-to-wear are declining, Chinese luxury buyers are pivoting toward fine jewelry. Demand for luxury handbags is stabilizing, but interest in high-end apparel continues to drop.
👜 Waiting Lists Are Shrinking
For some, this slowdown is a blessing in disguise. Fewer buyers mean shorter wait times for Birkin bags, Rolex Daytonas, and Ferrari SUVs. Prices for popular small bags like the Kelly 25 still hover at 1.8x retail—but that’s a pullback from pandemic-era peaks.
🧳 Brands Are Adjusting
Hermès is trimming inventory and focusing more on jewelry and ready-to-wear as independent growth engines. Meanwhile, larger handbags like the Birkin 30 are losing ground in favor of compact styles.
🔮 Luxury is still cyclical, and brands like Hermès and Rolex are preparing for leaner times.