The Quietest Luxury: Why the Luxury Customer is Migrating from Fashion to Health.

Is luxury losing its luster? Why are high-net-worth individuals diverting their spending from handbags to holistic health? Could wellness be the new benchmark for modern affluence? In this latest edition of The Future of Luxury by Summit Communication Group , we explore the silent but powerful shift reshaping the luxury landscape. As traditional luxury brands struggle with declining revenues, the $1.8 trillion global wellness market is flourishing, driven by a profound change in consumer priorities. We examine the macroeconomic forces behind this migration and how wellness is redefining what it means to live luxuriously in a world where personal well-being has become the ultimate status symbol.

The luxury sector, once considered impervious to economic downturns, is facing an undeniable slump. LVMH , the world’s largest luxury conglomerate, reported a 16% drop in sales across Asia (excluding Japan) in the third quarter of 2024, with its flagship fashion and leather goods division down 5%, marking its first contraction since 2020. Gucci , similarly, has seen a steep decline, with sales plummeting by 23%, while its parent company Kering issued profit warnings, anticipating a 30% drop in operating income for the second half of the year. Even stalwart brands like Christian Dior Couture have not escaped unscathed, as the industry grapples with falling demand from Chinese consumers. But the macrotrend driving this continuing decline isn't the economic slowdown in China, AI, the upcoming US election, or even the latest scandal involving the entertainment elite—it's a cultural shift in what people now define as the art of living well.

Luxury has always been an expression of taste and lifestyle. A Chanel handbag, a Hermes scarf, a Ferrari parked in the driveway—all timeless symbols of aspiration. Yet something is changing. Recent financial data suggests the once impenetrable luxury sector is faltering.

The New Lure of Wellness

Gym mommies, rejoice! To understand the forces reshaping luxury, one must first recognise the unstoppable rise of wellness. What was once a niche market—dominated by yoga retreats and spa treatments—has morphed into a global juggernaut, worth an estimated $1.8 trillion. Personalised skincare, mental health apps, nutrition regimes, and even bespoke fitness solutions are becoming the new markers of wealth.

Sources close to the industry say that wellness-related spending is growing by 5-10% annually across all regions, driven not only by post-pandemic anxiety but also by inflation and economic uncertainty. “Luxury is no longer about owning the most exclusive items,” says Francesca Di Carlo, a luxury analyst at Citi . “The perception of success is evolving to prioritise health and well-being over mere material wealth.” And this shift is changing the rules of the game.

In affluent circles, the impact is evident. It’s no longer about the Gucci handbag or the Dior shoes—it’s about who’s attending the most exclusive wellness retreats, who has access to the most personalised health care. Consumers are moving their attention, and their wallets, to a lifestyle that promises not just status, but longevity. While fashion may catch the eye, a luxurious spa experience or a personalised health regimen offers something far more profound: the promise of living better and living longer.

Related Article from Offmarket Investments by Summit Communication Group: $1.8 Trillion Health, Beauty and Wellness Revolution: Private Equity’s Next Billion-Dollar Bet.

China’s Slowdown: A Convenient Scapegoat?

LVMH , the world’s largest luxury conglomerate, reported a staggering 16% drop in sales across Asia (excluding Japan). It is easy to point fingers at China’s slowing economy, with its faltering housing market and uncertain geopolitical future. However, experts in the industry are beginning to question whether this is the whole story.

“Weak spending by Chinese consumers depressed revenue at the Paris-based conglomerate... Sales at LVMH’s core fashion and leather goods division, seen as a bellwether for the luxury sector, fell 5 per cent.” Adrienne Klasa, Journalist at Financial Times

“There’s a growing unease in China’s wealthy classes,” says Adrienne Klasa, a luxury sector analyst. “The uncertainty around property markets and the broader economic outlook is leading even affluent consumers to rethink their spending habits. Personal wellness feels like a safer investment than luxury handbags right now”.

Gucci , long a favourite among China’s luxury shoppers, has suffered a brutal 23% drop in sales. While some analysts have placed their faith in a rebound, citing China’s stimulus efforts, others are not so sure. “Consumer confidence in mainland China is at its lowest point since the pandemic. Even HNWIs are funneling more resources into experiences that offer long-term personal value, like wellness, rather than into traditional luxury goods,” admitted Jean-Jacques Guiony, Chief Financial Officer of LVMH .

Inflation and the Erosion of Luxury Spending

Across the Western markets, another macroeconomic force is at play: inflation. Prices are climbing at the fastest pace in decades, squeezing disposable incomes—even among the wealthy. As costs rise, even affluent consumers are beginning to question whether they need that second Louis Vuitton bag or whether it might be wiser to invest in their well-being.

“The business of luxury is seduction... Yet their approach to the sector also veers into blind faith. See, for instance, the market’s reaction to LVMH’s — horrible — sales figures.” Camilla Palladino, Opinion Contributor for Financial Times

Luxury goods, once seen as essential status symbols, are now being re-evaluated. "Inflation has a psychological impact," Thomas Chauvet, an analyst at Citi , explained. “It makes people feel uncertain about the future. When consumers feel uncertain, they start looking for stability, and right now, wellness offers that sense of security. It’s something that you invest in for yourself, and it pays dividends in terms of health and happiness”.

Gucci , LVMH , and others are feeling the pinch. A report from Barclays revealed that Gucci’s operating income is expected to plummet by 30% in the second half of 2024. These are not isolated incidents but rather part of a broader shift in spending. The aspirational middle class, once willing to splurge on high-end fashion and accessories, is turning to wellness products that promise tangible benefits. Fitness regimes, mental health services, and wellness retreats have become the new luxury, offering both physical and psychological returns.

The Cultural Shift Towards Holistic Well-Being

At its core, this migration to wellness is a cultural shift. The days when luxury was solely about flaunting wealth through material possessions are fading. Success is now increasingly measured by health, happiness, and personal fulfilment. The ultimate luxury in 2024 is not a limited-edition watch or designer outfit but the state of one’s well-being.

“Consumers are looking for ways to take care of themselves in a holistic sense,” a recent McKinsey & Company report concluded. “This includes not only physical health but mental, emotional, and even spiritual well-being”. The sentiment is clear: people are turning inwards, viewing wellness as a long-term investment in themselves. The question luxury brands must now answer is whether they can pivot fast enough to capture this new wave of consumer demand.

Louis Vuitton , for example, has recently entered the fitness space, launching a line of high-end gym equipment. Gucci has also attempted to ride the wellness wave, collaborating with influencers to promote mindfulness and mental well-being. Yet, for all these efforts, the luxury giants are struggling to keep pace with the rapid evolution of consumer preferences.

Inflation Redefines the Concept of Self-Care

It is not just the wealthy rethinking their spending. Inflationary pressures are redefining the very concept of self-care for a broader range of consumers. The aspirational luxury segment—those whose disposable incomes once allowed for regular luxury purchases—are now directing their financial resources towards experiences and products that enhance their well-being.

“Wellness, on the other hand, is seen as a long-term investment,” explains Chauvet. “For these consumers, spending on physical fitness, mental health, and well-being feels like a more justified expense than a luxury handbag or a pair of designer shoes”. Consumers are becoming more strategic, channeling their resources into sectors that promise the greatest return on their investment—not financially, but in quality of life.

The Luxury Sector’s Struggle to Innovate

“The business of luxury is seduction... Yet their approach to the sector also veers into blind faith. See, for instance, the market’s reaction to LVMH’s — horrible — sales figures.” Camilla Palladino, Opinion Contributor for Financial Times

Despite the clear shift, luxury brands have been slow to adapt. Many are doubling down on the same formula that worked for decades, hoping that consumers will return. But there are warning signs. “More worryingly, it is by no means clear that, when the macro drag eventually clears, the luxury sector will seamlessly return to rapid growth,” says Camilla Palladino, Opinion Contributor for Financial Times.

Gucci, meanwhile, has embarked on a massive rebranding effort under its new CEO, Stefano Cantino. But the brand, once a darling of the fashion elite, faces an uphill battle to win back consumers. “Gucci’s attempt to reposition itself as a more pared-down, timeless luxury brand may help,” says Adrienne Klasa. “But it’s not clear if this will be enough to compete with the growing appeal of wellness”.

The Wellness Revolution and the Future of Luxury

The migration away from traditional luxury and towards wellness is more than a fleeting trend—it is a profound redefinition of what it means to live luxuriously. Wellness, with its promise of longevity, balance, and personal fulfillment, offers consumers something that luxury goods cannot: intrinsic value. As inflation erodes disposable incomes and economic uncertainty lingers, the shift toward wellness will likely deepen.

For luxury brands, the stakes have never been higher. Those who succeed in integrating wellness into their core offerings will thrive in the new landscape. Those who continue to cling to outdated models of exclusivity will find themselves increasingly irrelevant. In this new era, the future of luxury lies not in material possessions but in the promise of a healthier, happier life. The silent revolution is underway.

Related Article from Offmarket Investments by Summit Communication Group: $1.8 Trillion Health, Beauty and Wellness Revolution: Private Equity’s Next Billion-Dollar Bet.

6 Trends Shaping the $1.8 Trillion Wellness Revolution

As 2024 progresses, the wellness industry—a sprawling ecosystem that was once a niche market of fitness and beauty—is now worth an estimated $1.8 trillion. Quietly but profoundly, it is reshaping how consumers define health, happiness, and longevity.

1. Personalisation: The New Standard of Wellness

The revolution begins with personalisation. "Consumers have never been so educated, so empowered about their health,” said Luca Solca, an analyst at Bernstein . “The days of one-size-fits-all are over." From skincare regimes to fitness programs, wellness is no longer generalised. It is tailor-made. Advances in technology, notably wearable devices and artificial intelligence, have enabled hyper-personalised products and services. Consumers now expect data-driven insights into their unique biology.

The trend is visible everywhere. Companies like Care/of, which personalises vitamin plans, and apps that track your blood sugar or sleep patterns, have become the norm. A recent McKinsey report revealed that consumers are increasingly turning to tech-enabled solutions that provide real-time feedback on everything from heart rate to stress levels. Even mental health is getting personal—apps like Calm and Headspace offer meditation plans designed around specific user needs.

It’s not just apps. Ritual, another personalised supplement company, is riding the wave. It crafts vitamins based on lifestyle choices, age, and health goals. "We're entering a phase where consumers demand more than products—they want personalised care," said Francesca Di Carlo, a luxury analyst at Citi . This level of personalisation is no longer an exception; it’s the expectation.

“Chief financial officer Jean-Jacques Guiony told analysts that consumer confidence in mainland China had reached Covid-era lows.” Jean-Jacques Guiony, Chief Financial Officer of LVMH

2. Mental Health: Wellness Goes Deep

If 2024 is about one thing, it’s the embrace of mental health as the cornerstone of well-being. The pandemic may have broken the taboo, but what has followed is a full-blown cultural shift. Stress, anxiety, and burnout are no longer hidden away in whispers—they are front and centre in the wellness discourse. And businesses are catching on.

Therapy platforms like BetterHelp and Talkspace have made counselling more accessible. Their growth has been meteoric, proving that consumers want—and need—solutions for emotional and psychological well-being. The marketplace is flooded with new offerings, from on-demand mental health services to mindfulness workshops. Corporate wellness programs have had to adapt. "It’s not enough to offer a gym membership anymore," says Adrienne Klasa, a sector analyst. "Today’s employee wants mental health days and therapy sessions on demand."

Meanwhile, luxury retreats like Canyon Ranch and Six Senses Hotels Resorts Spas , once known for massages and facials, are expanding their offerings. These high-end resorts now focus on emotional healing and spiritual well-being, drawing a wealthy clientele seeking more than just a temporary escape. As Solca at Bernstein explains, "Wellness is not a weekend retreat anymore—it’s about rebuilding yourself from the inside out."

3. Holistic Healthcare: The Preventative Mindset

The pandemic didn’t just make people aware of their health—it made them proactive about it. Gone are the days when healthcare was reactive, focused on addressing illness after it strikes. Consumers are adopting a preventative mindset, integrating holistic and functional medicine into their lives. This shift towards long-term wellness is reshaping traditional healthcare models.

Functional medicine, a once-fringe approach, is now gaining mainstream traction. Its promise to treat the root cause of illness, rather than merely address symptoms, has aligned perfectly with the growing demand for comprehensive health solutions. According to McKinsey, the global market for functional foods—products designed to promote optimal health—is experiencing a surge. Superfoods, anti-inflammatory diets, and supplements aimed at improving gut health are now essential to everyday life.

Then there’s biohacking, a practice once confined to Silicon Valley eccentrics. It is now being embraced by consumers worldwide. Wearable devices that track biomarkers, IV vitamin drips, and cryotherapy are just some of the methods consumers are using to optimise their bodies and minds. The quest for longevity is no longer science fiction—it’s a growing sector of the wellness market, feeding into an ever-expanding demand for preventative care.

4. Wellness Tourism: Rejuvenation as a Destination

There’s another key player in the wellness market: tourism. Wellness tourism—already a multi-billion-dollar industry—is projected to explode in 2024. As international travel resumes post-pandemic, consumers are no longer interested in holidays where they simply unwind. They want transformation. Health, fitness, and spiritual well-being are now the focal points of travel itineraries.

Luxury retreats are leading the charge. Aman , Chiva-Som International Health Resorts Co., Ltd. , and THE RANCH offer detox programs, yoga retreats, and immersive fitness experiences that blend physical rejuvenation with mindfulness and nutrition. As Solca explains, “People aren’t just traveling for the scenery anymore; they are traveling for personal transformation.” The Global Wellness Institute estimates that wellness tourism will grow by 7.5% annually over the next few years, far outpacing the overall tourism sector.

The trend is even trickling down into urban travel. Hotels are offering wellness-focused amenities: yoga classes, meditation spaces, and on-demand health coaches. The line between luxury and wellness is blurring, as travellers demand more than just relaxation—they want well-being baked into the experience.

5. Sustainability: Ethical Wellness Takes Centre Stage

Wellness, for many consumers, is no longer just about personal health. It’s about the planet’s health, too. Sustainability has become a non-negotiable aspect of the wellness market. "It’s a cultural shift," says Klasa. "Consumers care as much about the source of their products as they do about the products themselves."

This trend has given rise to clean beauty, sustainable fashion, and eco-friendly wellness brands. McKinsey reports that 60% of consumers are willing to pay a premium for sustainable products. Clean beauty brands like Tata Harper Skincare and DRUNK ELEPHANT , which use natural ingredients and eco-friendly packaging, are thriving. Sustainable athleisure brands like Girlfriend Collective , which uses recycled materials, are capturing the attention of ethical consumers.

Sustainability also plays a crucial role in wellness tourism. Resorts like Six Senses Hotels Resorts Spas are incorporating renewable energy, sustainable food sourcing, and conservation efforts into their offerings. As consumers demand transparency, the brands that prioritise ethical and sustainable practices will stand out in an increasingly crowded market.

6. Integration: Wellness as a Lifestyle

Perhaps the most telling trend in 2024 is the integration of wellness into every aspect of life. Wellness is no longer a product or service—it’s a lifestyle. From the food people eat to the clothes they wear and the way they work, wellness has permeated daily life.

This is most evident in the workplace. Companies are adopting wellness-oriented environments, offering mental health days, ergonomic office setups, and flexible work hours. "Employees want to work in places that value their well-being, not just their productivity," says Solca. The rise of home wellness spaces—meditation corners, home gyms, and air-purifying plants—has been fuelled by the remote work trend, further embedding wellness into everyday routines.

Even meal delivery services are getting in on the action. Wellness-focused options, such as plant-based meal plans and keto-friendly menus, are becoming mainstream. “Consumers want their daily routines to reflect their values,” Di Carlo says. “Wellness is no longer something you indulge in—it’s how you live.”

For businesses, the message is clear: adapt or be left behind. Companies that offer holistic, sustainable, and personalised wellness solutions will be the ones to thrive in this new economy. As consumers continue to prioritise balance, fulfilment, and long-term health, the wellness market will remain one of the dominant forces in the global economy, reshaping industries and redefining what it means to live well.

Opinion by Gregory Gray , CEO and Founder of Summit Communication Group

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