The luxury market is undergoing a fundamental transformation. Consumers are no longer making purchasing decisions based solely on brand heritage or exclusivity—they are becoming more selective, value-conscious, and digitally engaged. With evolving preferences in luxury watches, leather goods, perfumes, and cosmetics, understanding what drives consumer decisions in 2025 is more critical than ever.
At Data&Data, we empower luxury brands with the market intelligence needed to navigate these shifts, optimize pricing strategies, and ensure their offerings remain relevant in an increasingly dynamic industry.
The New Luxury Consumer: What’s Driving Their Decisions?
Value Over Status While luxury has long been associated with prestige, today’s consumers are scrutinizing value for money more than ever. Rising prices in the leather goods and beauty sectors have led shoppers to demand exceptional quality, craftsmanship, and exclusivity that justify the premium cost.
According to Forbes, the dramatic price increases in the luxury sector over recent years have sparked discussions about justification and perceived value (Forbes, 2025).
Luxury Shoppers Are Thinking Long-Term High price tags are pushing consumers toward pre-owned and resale luxury—not just for affordability but also as an investment strategy. The growing Certified Pre-Owned (CPO) sector is reshaping how consumers evaluate luxury purchases.
The global resale luxury market is expected to grow 12% annually through 2030, making it one of the fastest-growing segments in luxury (Bain & Company, 2025).
The Luxury Playbook Is No Longer One-Size-Fits-All Consumer preferences vary drastically by region—luxury leather goods and cosmetics see booming demand in Latin America and the Middle East, while China’s slowdown is reshaping sales forecasts.
Luxury bag sales in the Middle East grew by 7.2% in 2024, outpacing the global market’s average growth rate (Statista, 2024).
From Brand-Led to Community-Driven Luxury Social media platforms like Instagram, TikTok, and WeChat are shaping luxury buying decisions more than ever. Consumers are turning to influencers, brand collaborations, and real-time social commerce before making high-end purchases.
In 2024, over 50% of luxury consumers discovered new products via social media first, proving that the power of digital influence continues to rise (McKinsey, 2024).
Sustainability as a Deciding Factor Luxury consumers, especially Gen Z and Millennials, increasingly prioritize sustainability when choosing leather goods and beauty products. The demand for eco-conscious fragrances, vegan leather, and refillable cosmetics is on the rise.
Sustainable luxury leather goods are projected to see a 4.5% annual growth rate from 2025 to 2029 (Statista, 2025).
Accessible Luxury Is Rising, But Will It Dilute Exclusivity? Consumers are increasingly drawn to « accessible luxury » brands—like Jacquemus, Byredo, and Polène—which offer a balance between exclusivity and affordability. This shift challenges traditional luxury brands to redefine their positioning.
Digital & Personalization-Driven Purchases Luxury consumers now expect AI-powered recommendations, virtual try-ons, and hyper-personalized shopping experiences. Digital-first strategies are becoming essential for brands that want to convert desire into purchase decisions.
The fragrance industry is embracing mood-driven, personalized scents, where AI helps tailor recommendations to individual preferences (CosmeticsDesign-Europe, 2025).
How Data&Data Helps Luxury Brands Stay Ahead
With consumers becoming more discerning and data-driven, luxury brands can no longer rely on intuition alone. Data&Data provides brands with:
Market Intelligence to track evolving consumer behaviors and preferences.
Pricing & Demand Analytics to ensure luxury goods are positioned competitively.
Distribution Monitoring to combat unauthorized sales and maintain brand exclusivity.
As consumer behaviours shift from desire to data-backed decisions, Data&Data ensures luxury brands have the insights they need to make informed strategic moves.
