Covid-19 reminded us that our time on earth is limited, fuelling a “you only live once” (YOLO) spirit among consumers. Discretionary spending has risen significantly above pre-pandemic levels: the richer the consumer, the higher the spend. The normal drivers of increased spending — essentially greater consumer “feel good” on the back of being richer — have ceased to matter, liquidity and “revenge spending” being enough to prompt higher outlays.⁠
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But consumers are sobering up from the post-pandemic euphoria and luxury spending growth will undoubtedly moderate and return to its cyclical pattern. ⁠
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It’s not all bad news, however. The sky’s the limit for the high end of the market. Rising income and wealth inequality are boosting spending power at the top of the socio-economic pyramid. ⁠
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Read Luca Solca’s full report in our #linkinbio.⁠
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✍️ Luca Solca⁠
? Spotlight/Launchmetrics⁠
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#LuxuryFashion