How High Net Worth Shoppers Have Changed Their Approach to Luxury

There’s some good news for luxury purveyors this year — depending on what you are selling.

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A Forbes examination of 250 high-net-worth individuals around the world showed that 78 percent of those surveyed plan to increase their luxury spending in 2024. However, a lot of the increased spend will be for traveling, leaving fewer dollars for material goods in most cases.

According to the Forbes data, released Wednesday, the average high-net-worth (HNW) individual plans to spend $63,000 on travel this year, up from $44,000 last year, and $30,000 on jewelry this year, up from $22,000 in 2023.

But spending on designer clothes and accessories by the HNW crowd is expected to drop to $30,000 on average from $49,000 in 2023. Spending by HNW individuals on watches, on average, will be down slightly to $22,000 this year, from $24,000 in 2023.

Also, HNW individuals will be drinking less. Spending on premium spirits is seen plummeting to $9,000 this year on average, from $16,000 last year, according to the survey.

The Forbes sample of wealthy shoppers consisted of those with over $2 million in investible assets, with a third of the group having over $30 million in investible assets. Investible assets are those that are liquid and readily converted to cash. Of the 250 surveyed, 36 percent were female; 64 percent were male, and 27 percent were under 40 years old.

Dissecting the data further, Forbes indicated that 84 percent of the ultra-high-net worth individuals surveyed — those with at least $30 million in investible assets — plan to increase their luxury spending this year. Also, 93 percent of those in the segment favor brands that provide unique experiences, whereas 82 percent of those surveyed favor unique experiences.

The study also suggests that the vast majority of HNW individuals value knowledge about premium brands and purchase luxury goods and experiences as self rewards for milestones. Stores are the most preferred source of information on luxury, followed by events, social media, brand websites and lastly, virtual reality.

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Forbes also found that women are more comfortable shopping online (58 percent for women vs. 47 percent for men), women are more likely to purchase luxury goods from brands seen on social media (67 percent vs. 58 percent), and men view owning luxury vehicles as the top symbol of success (71 percent vs. 44 percent) while 59 percent of the women a surveyed said designer jewelry is the most important symbol of success.

According to a Forbes spokeswoman, the data was collected online from April 2023 to May 2024 to ensure it is reflective of consumer habits and opinions as they change over the course of a year.

On Wednesday, Forbes hosted a panel on HNW individuals with Forbes luxury lifestyle editor Michael Solomon who served as moderator; Caroline Fall, head of global luxury partnerships for Marriott International; Nelson Elliot Gillum, director of brand experience, Moët Hennessy, and Shannon Golden, brand director, Tag Heuer.

Top of mind for the panelists: the importance of brands providing exclusive products, exclusive experiences, perks, sustainable practices, storytelling, cultural relevance and authenticity.

Gillum said working with famous influencers is “kind of dead,” that Moët Hennessy is shying away from one-off partnerships and partnering more with like-minded brands.

“More than ever, our customers want to see perks,” said Fall, citing free transport from the airport to the hotel.

“Younger customers want that authenticity,” commented Solomon. “It’s not just about sizzle. It’s the steak.”

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