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Luxury signalling: Considerations for a K-shaped world
The luxury good space has seen very uneven growth over the last few years. After being the global catalyst for luxury growth pre-Covid, in China, traditional luxury brand growth has stalled and, in some cases, even reversed. This has been ascribed to several factors including a weak property sector that has strained consumer balance sheets (negative wealth effect), a rising preference for local brands (China first), as well as a maturing of consumer profiles and - as a result - their behaviour within the broader sector. The latter explains continued growth in "quiet luxury" brands that prioritise quality and craftmanship above volume and speed to market.
28 May 2026