Jewellery and watches are shining bright in luxury spending.
While global luxury spending has levelled off at about $1.75 trillion (€1.5 trillion), experts say the action is happening in new areas. Chanisa Kaewruen from Siam Piwat Co., Ltd. shared her insights at the Retail Asia Summit in Thailand. She pointed out that luxury spending is shifting from traditional fashion to lifestyle sectors like hospitality and dining.
“Consumers are looking for meaning in their purchases,” Kaewruen noted. This change is prompting brands to rethink their strategies. Notably, jewellery and watches are excelling, with growth around 15%.
Siam Piwat launched The Watch House, a platform that connects over 30 watchmakers with enthusiasts. Kaewruen emphasized, “It’s more than just buying. It’s about building a community and learning together.”
Oraya Koonlinthip from The 1, Central Group, expressed a similar view. She highlighted that high-value customers engage deeply with brands, spending 40 times more than average shoppers. Their exclusive members visit stores twice a week, seeking more than just products.
Ratikorn Kaewpichai, from the Thai Silk Company, shared that brands are adjusting their strategies. Jim Thompson, historically seen as a gifting label, is moving towards being a premium lifestyle brand. “If gifting is only practical, it loses value,” he explained.
Leona Tan from Kearney moderated the session and reframed the stabilization of luxury spending. She sees it not as a downturn, but as the market maturing. This evolution rewards brands that quickly embrace lifestyle-driven categories. With local markets in Asia thriving, there’s significant potential ahead.
This trend reflects a larger shift in consumer behavior: from mere shopping for goods to investing in experiences and communities. The future of luxury is not just in owning items but in creating connections and meaningful interactions.
According to a recent survey by Deloitte, 55% of consumers prefer to spend on experiences rather than products, emphasizing this behavioral shift. Understanding and adapting to these changes can help brands thrive in this new luxury landscape.
