The dominant discourse in the sector remains focused on personalization and sustainability. These two axes, emphasized for the past five years, mask deeper strategic reorientations that we are already observing in the decisions of brands for 2026: a refocusing on the product, concentration of investments on very high-value clients, and a relocation of sales to domestic markets.
Domestic luxury versus shopping tourism: a structural shift
The share of cross-border sales is significantly declining, according to BCG, in favor of purchases made in the country of residence of wealthy clients. This is not a cyclical adjustment related to travel restrictions. It is a fundamental trend.
Brands are restructuring their boutique networks accordingly. The flagships in Paris or Versailles, long calibrated for the Asian tourist flow, are redirecting their merchandising and sales teams towards a loyal local clientele. Clienteling is becoming more sophisticated: the relationship no longer starts at the store entrance; it is built upstream through private channels.
For brands, domestic luxury imposes a different profitability model. A local client returns, compares, and expects consistent service over time. Seasonal peaks related to tourist influxes are fading, replaced by a more regular but more demanding flow. Specialized platforms like Le Monde du Luxe document this reallocation of commercial resources towards residence markets.
Return of the product and decline of the logo in purchasing criteria
Design, craftsmanship, and timelessness weigh more than brand visibility in the purchasing decisions of the highest segments. The ostentatious monogram, a growth driver during the 2010s, is losing its appeal among top spenders.
This return to the product translates into concrete industrial choices. Brands are reinvesting in their leather workshops, recalling artisans trained in traditional techniques, and extending development cycles. A bag designed over several seasons, with prototypes tested in real conditions, does not follow the same logic as a piece created to generate buzz on social media for three weeks.
We are also observing a shift in communication. Campaigns highlight the material, the technical gesture, the origin of the leather, rather than aspirational lifestyle. Creators are taking the floor on the manufacturing process, not just on artistic direction.
What this changes for in-store selection
Collections are tightening. Fewer references, more depth per line. Permanent pieces gain exposure space compared to ephemeral drops. This concentration improves margins and reduces unsold items, an indicator that publicly traded groups monitor very closely.
Focus on top spenders: the end of mass aspirational luxury
The pyramid strategy, which involved attracting millions of customers through entry-level products (fragrances, small leather goods, beauty) to support the image and finance the high-end, reaches its limits as growth slows in China. Despite an anticipated decline in local Chinese spending, purchases abroad by wealthy Chinese clients are increasing, confirming that purchasing power still exists but is concentrating.
Brands are favoring clients who represent the largest share of revenue. VIC (Very Important Clients) programs are transforming:
- Priority access to high jewelry pieces and limited editions before any public communication
- Private in-store spaces dedicated to bespoke appointments, with advisors trained in the art of living as well as sales
- Exclusive events related to art, gastronomy, or holistic well-being, designed as personal transformation experiences rather than mere brand evenings
Hermès illustrates this dynamic with double-digit sales growth in the last quarters of 2024, driven by its most loyal clientele. The model works because the organized rarity of the product (waiting lists, intentionally limited production) strengthens the attachment of recurring buyers.
Holistic well-being and new frontiers of experiential luxury
The experiential segment is no longer limited to five-star hotels or palace spas. Experiential luxury is migrating towards holistic well-being offers, close to the logic of retreats or personal transformation. Multi-day retreats combining nutrition, movement, and mental support, bespoke programs integrating cutting-edge medical protocols: elegance is now also measured by the attention given to the body and mind.
Historic brands are investing in this area by transforming their physical spaces. Boutiques are becoming sensory living spaces, with private consultation lounges, olfactory workshops, and art libraries. The goal is not to sell a product at every visit but to create an emotional connection that justifies the price level over time.
What distinguishes this wave from previous ones
Previous experiential luxury offers remained peripheral to the product. Today, the experience itself becomes the product for a growing fraction of the clientele. A well-being stay costing several tens of thousands of euros does not generate resale on the second-hand market, does not depreciate, and is not easily replicated. For brands, it is a margin relay protected from counterfeiting and depreciation.
Personalization and sustainability will continue to occupy press releases. Actual budgetary decisions point elsewhere: towards products rich in craftsmanship, towards clients who buy without comparing, and towards a territorial anchoring that redefines the geography of luxury. Brands that have understood this no longer seek to appeal to everyone.