The Devil Wears Data: Inside the minds of today’s luxury consumers

Luxury isn’t the gilded playground it once was. After years of steady growth, especially in China and the US, cracks are beginning to show. Consumers are becoming more cautious, economic pressures are biting, and the old rules don’t seem to apply anymore. In short, the game has changed. Based on insights from this year’s Walpole Luxury Summit, here’s a look at what’s shifting — and what luxury brands can do about it, especially when operating internationally.

1. The global luxury market is fragmented

Luxury used to ride a wave of strong demand from the US and China. But now that tide is turning — and becoming more unpredictable.

In China, consumers are moving away from showy purchases. What once screamed status now leans more towards meaningful, personal experiences. In the US, economic uncertainty and exchange rate pressure are making shoppers pause — though there’s still potential, particularly among aspirational buyers who are new to luxury.

Meanwhile, Japanese tourists have re-emerged as significant spenders abroad, offering opportunities in cities like Paris, Milan and London. And in the Middle East, Indonesia, the Philippines and parts of Latin America, appetite for luxury is on the rise.

As Bain & Company put it in their May 2025 report: “The luxury industry is no longer buoyed by uniform global growth; instead, brands must prepare for fragmented demand and pockets of opportunity.”

What to do about it:

• Revisit your targeting strategy by analysing where growth is coming from — and adjust campaigns to suit local trends.
• Use Local In-Market Experts (LIMEs) to surface emerging opportunities and spot consumer shifts early.
• Localise your paid media to ensure relevance, especially in emerging markets with rising demand.
• Optimise your international SEO for long-tail and localised luxury search terms. Think beyond ‘luxury handbags’ to more targeted phrases like ‘handmade Italian leather totes Milan’ or ‘exclusive silk scarves Tokyo.’
• Tailor your UX so that regional audiences feel seen and understood. Use images, words, and layouts that feel familiar, so visitors don’t have to guess what’s going on.

2. Big spenders are embracing small luxuries

People still want luxury but they’re shopping smarter. Categories like beauty and eyewear are outperforming big-ticket items such as watches and jewellery. These so-called ‘entry luxuries’ offer a taste of indulgence without the price tag. For brands, this is a chance to build loyalty from the bottom up. The lipstick effect is real and still relevant.

What to do about it:

• Craft content that elevates your smaller products, showing their value and emotional appeal.
• Adjust paid media targeting to appeal to aspirational buyers seeking affordable indulgence. Think ads for a signature fragrance or limited-edition nail polish sets.
• Optimise product pages for these categories, with strong messaging, compelling imagery and rich localised content – like close-ups showing texture or packaging details. Include localised descriptions that resonate with each market.
• Work with Local In-Market Experts to find out which entry-level items are trending where – perhaps luxury skincare in South Korea or designer eyewear in the Middle East.
• Track micro-conversions such as newsletter sign-ups or wish list adds, to see how these small indulgences build longer-term brand love.

3. Creativity needs a rethink — and a reconnection

With creative reshuffles at many luxury houses, brand consistency is becoming harder to maintain. Price hikes haven’t helped. Consumers are feeling fatigued — by marketing, by design, and by what can sometimes feel like luxury for luxury’s sake.

But there’s an upside: in uncertain times, there’s renewed appetite for heritage, provenance, and craftsmanship. People want to feel something, not just see an expensive logo.

What to do about it:

• Dial up storytelling in your campaigns – such as sharing the artisan’s journey behind a hand-stitched leather bag or the century-old tradition of a perfume house. Local experts can help tailor these stories to different markets.
• Use content marketing to spotlight craftsmanship – like behind-the-scenes videos of master watchmakers or interviews with designers – rather than just pushing product features.
• Run UX audits to make sure your site and apps evoke the right emotions – whether that’s a smooth checkout experience or immersive visuals that reflect your brand’s soul globally.

4. AI has arrived — now make it feel human

AI is now baked into everything from forecasting demand to generating designs. But luxury brands face a real challenge: using AI to scale without losing the intimacy and emotional connection that defines the category.

Used well, AI enhances what humans do best, freeing up time for creativity, narrative, and design. But it’s essential to ensure human oversight – and in particular, local oversight – a theme we explore in our new book, Beyond Borders.

What to do about it:

• Use AI for international segmentation to understand behaviour by market — like spotting different preferences in London versus Los Angeles – then validate with local experts.
• Personalise on-site experiences with AI-powered recommendations that feel like a trusted stylist’s picks, not cold algorithms – for example, suggesting sunglasses that suit a customer’s face shape and style.
• Test AI-generated content – for example, product descriptions or ad copy – but always filter it through local nuance and human oversight.
• Build AI into CRO strategies by spotting where users drop off – for example, a confusing checkout step for Middle Eastern shoppers – and then eliminate those bumps.
• Make sure AI improves the overall user experience, not just back-end efficiency – like faster site speed and a shopping journey that feels thoughtful and seamless.

5. Inclusion: Less talk, more action

Luxury has an inclusion problem. Women drive most of the spending but are under-represented at the leadership table. Meanwhile, diversity often stays in marketing slogans, not in boardrooms.

Today’s luxury buyers want brands that truly reflect their values. Inclusion isn’t just good ethics but is smart for business too. However, there’s a catch: diversity and inclusion can mean different things in different markets, which is why local insight is key.

What to do about it:

• Review your international content with local experts to ensure representation feels real and relevant to each market.
• Use UX research to gauge how inclusive your brand experience is across audiences.
• Localise influencer partnerships to reflect your diverse customers — local experts can help you find the right voices.
• Ditch performative campaigns. Focus on genuine, ongoing inclusion at every touchpoint.

. . .

The real devil is in the detail

In luxury marketing, the devil isn’t just in the data — it’s knowing what to do with it. Because while everyone’s drowning in numbers, the true skill is spotting which ones actually matter. Luxury markets don’t play by the same rules anymore. What works in Paris might flop in Jakarta, and what flies in Dubai could be ignored in São Paulo.

That’s where the magic happens: tuning into the small and often overlooked details that make your brand feel tailor-made. At Oban, our Local In-Market Experts deliver those razor-sharp insights — the kind that’d make even Miranda Priestly nod in approval. Curious? Let’s talk.