Chinese demand is rebounding as quickly as the most optimistic forecasts predict. In the United States, against a backdrop of macroeconomic shifts, the luxury market could rise by 11% to 13% this year versus 2022. If that scenario stalls—if purchases stay domestic in China and temper expectations on the other side of the Atlantic—the high end segment would still grow, by about 7% to 9%. Even in a softer consumption environment, the luxury sector shows growth. This resilience comes from a segment that tends to be less affected by slower sentiment and enjoys a better financial position than a year ago, even as customers still seek a smoother and richer shopping experience. The tension remains: the in-store and online channels each offer a distinct set of advantages and gaps.
Insights from a Boston Consulting Group report and Altagama summarize a global market with about 20 million truly loyal luxury customers who spend more than 39,000 euros a year on products and premium experiences, not counting expenditures on cars, yachts, or smart devices.
According to the report, only four out of ten customers feel their purchases fully meet expectations; 45% rate satisfaction as adequate, and 11% report disappointment.
Luxury brands have devoted substantial effort to refining the offline customer journey and the in-store sales ritual. As a result, visiting a luxury store often doubles the likelihood of a purchase compared with a traditional retail point of sale. Yet the online processes for luxury brands lag behind.
Two unmet needs drive this gap: speed and product availability on one side, and emotional comfort, shopping ease, and a sense of being pampered on the other.
breaks
Luxury shoppers seek exclusivity, a human touch, and personal attention. The online channel has become more engaging than the offline one, and its absence can seriously dent digital satisfaction, the report notes. The findings vary significantly across product categories.
For instance, among Gen Z customers, the share who view the shopping experience as disappointing is higher than the percentage feeling satisfied, with China showing lower levels of dissatisfaction thanks to rapid digital adoption. In certain markets, products like sunglasses show higher disappointment rates (about 30%) compared with bags, shoes, watches, jewelry, or cosmetics, where discontent tends to range from 10% to 18%.
Brand strategists cannot continue thinking only in terms of channels to improve the experience. Instead, they should decide whether to adopt a defensive stance—where specialization ensures every touchpoint supports the sale and guides customers to the most relevant options—or to take a more offensive path: hyper-personalization and ensuring that every touchpoint plays a role for each customer.