In a surprising twist, even the wealthiest individuals are starting to pull back on their luxury spending, according to a recent survey. This trend may catch many off guard, especially as luxury brands continue to ramp up their efforts to attract affluent clients. But here's where it gets controversial: a significant segment of high-net-worth individuals (HNWIs) is indicating a shift in their purchasing habits.
The survey reveals that 20% of affluent consumers plan to reduce their spending on designer clothing within the next year. Additionally, the number of those opting not to buy certain luxury items is alarming—30% for leather goods, 32% for jewelry, and a staggering 44% for watches, as reported by research firm Altiant with analysis from the Paris-based luxury consultancy MAD. This paints a picture of a market that is experiencing notable contraction.
Furthermore, the trend of wealthy buyers sitting on the sidelines is worsening each year. In 2019, only 15% of affluent consumers refrained from purchasing designer items; that figure skyrocketed to 25% by the third quarter of 2025. For leather goods, the proportion of individuals choosing not to buy jumped from 23% to 31% in the same timeframe.
Veronique Le Bansais, a senior partner and managing director at MAD, interprets these findings as indicative of a fundamental slowdown in discretionary spending among the affluent class worldwide. She noted, "Consumers remain engaged but are increasingly selective, cautious, and value-oriented." The data suggests a troubling trend for luxury brands that rely on frequent purchases from this demographic.
In fact, only 32% of wealthy clients expressed no intention of buying watches in the third quarter of 2024, a decline of 12 percentage points from the previous year. The downturn in watch sales appears to be particularly pronounced in Europe and Asia among consumers aged over 40, as well as within less wealthy yet still affluent groups.
Interestingly, the only category to see an uptick in purchase intent over the past year was travel, according to Altiant's extensive survey data, which involved nearly 500 affluent and HNWI participants in the third-quarter assessment. This shift toward valuing experiences over consumer goods reinforces the notion that luxury consumption patterns are evolving.
As for the reasons behind these changes, they vary across different categories. Clients aged over 40 seem to be stepping back from designer fashion, while affluent consumers are avoiding leather goods. On the other hand, HNWIs continue to purchase frequently, indicating a divide in consumer behavior within the wealth spectrum.
So, what does this mean for fashion houses? There’s an opportunity to tap into the robust demand among younger consumers aged 18 to 39, who are still willing to spend. However, brands must also grapple with issues of accessibility, particularly in the leather goods sector, where prices have surged during the post-COVID luxury boom.
Categories such as cosmetics, fragrances, and jewelry have shown resilience in the face of these shifting trends. Yet, a closer examination of jewelry sales reveals a stark contrast: while men over 40 are pulling back, women are actually increasing their purchase frequency. In fact, half of female HNWIs reported spending a median of over $13,000 in the past year.
The survey findings also highlighted North America as a beacon of promise for luxury brands, with wealthy clients reporting not only the highest levels of multiple purchases but also the lowest rates of abstaining from buying altogether. In jewelry, for instance, only 29% of North American high spenders didn’t make any purchases in the last year, compared to 43% in Asia and 52% in Europe. Similarly, only 16% of North American respondents claimed they didn’t buy designer clothing, while the figure stood at 33% for Europe.
Jean Revis, cofounder of MAD, characterized the current moment as one of uncertainty within the luxury sector, emphasizing the need for insights into how this wealthy clientele behaves statistically. The caution reflected in the survey results appears to stem from a broader lack of confidence in the financial system, with 61% of respondents viewing it as somewhat or very unstable, and 30% predicting a downturn in the stock market over the coming year.
Altiant's pool of affluent and HNWIs is evenly split among North America, Europe, and Asia, featuring a median household income of $270,000 and median investable assets of $883,000.
According to MAD’s analysis of the 2025 data, the downturn seems to reinforce traditional views regarding wealth. When asked to describe themselves in relation to wealth, affluent consumers showed a preference for terms like "tradition" over "modern," with a growing inclination toward "local" versus "international."
Despite these challenges, there are still reasons for optimism. Le Bansais pointed out, "The number of people who made either multiple or single purchases consistently surpasses those who did not purchase at all, indicating a solid penetration of the market overall, which is a positive sign."
In an unexpected finding, the study revealed mixed sentiments regarding sustainable luxury. While only 56% of affluent and HNWIs consider it important, a striking 74% are willing to pay more for luxury products that are sustainable. Le Bansais suggested that wealthy consumers might be inclined to spend extra to ensure they are purchasing safe products, particularly in categories like beauty.
