Luxury Growth Is Shifting, but Relationships Still Matter Most

Key takeaways from the RLC Global Forum at Selfridges, Tuesday 8th September

Luxury retail is not standing still. Growth is moving between categories, markets and generations, while customers are becoming more willing to reconsider the brands they buy. But one message from the RLC Global Forum in London came through particularly clearly: the future of luxury will depend on creating stronger, more meaningful customer relationships.

Held at 40 Duke, Selfridges’ new private destination for personal shopping, eating and socialising, the setting itself reflected many of the themes discussed. This was not simply a place to shop. It was an experience designed around attention, hospitality and personal connection.

Across three discussions, retail and luxury leaders explored where growth is coming from, how customer behaviour is changing and what brands must do to remain relevant and desirable.

Luxury’s next growth categories

The opening session, ‘Where Luxury Finds Its Next Customer’, began with a market outlook from Deborah Aitken, Senior Industry Analyst for Global Luxury Goods, Beauty and Personal Care at Bloomberg Intelligence. She was joined by Sylvie Freund-Pickavance, Global Strategy and Business Development Director at Value Retail, and Derrick Hardman, Regional COO at Global Blue, with Kirsty McGregor, Fortune’s Editorial Director for Europe, moderating the discussion.

Deborah Aitken from Bloomberg Intelligence shared the outlook for luxury across its major categories. The overall picture was mixed, with some areas showing significantly more momentum than others.

Jewellery and watches remain resilient, with medium-term growth of 6–7% forecast for jewellery. Premium skincare, fine fragrance and dermatology are also performing well, supported by the wider consumer focus on health and wellness. These categories increasingly sit within a much broader idea of luxury, one that is connected to how people want to feel as much as what they want to own.

Apparel is expected to benefit from a wave of new creative directors and renewed creative energy, with growth of around 3% anticipated by Autumn/Winter 2027. Leather goods face a tougher outlook. Younger customers are showing more interest in smaller formats and mixed-bag wardrobes, rather than investing in one traditional statement piece.

Some of the strongest opportunities in luxury retail sit beyond product ownership altogether. Experiences, travel, wellness, hospitality and other forms of connection are expected to grow by 5–7%, as more generations choose to spend on memorable experiences. For luxury brands, this expands the competitive set. The question is no longer simply which bag, watch or coat a customer will buy, but where they choose to spend their time and how a brand makes that time feel.

The geography of luxury spending is changing

Luxury growth is also becoming more geographically diverse. China once represented roughly a third of global luxury shopping, but the market is now relying more heavily on customers from the US, Latin America and other emerging regions.

The US was cited as growing by 9%, with American tourists continuing to spend strongly when travelling in Europe. Latin America is growing even faster, at around 20%, led by customers from Mexico, Brazil and Colombia.

This customer also behaves differently. Latin American luxury shoppers are more likely to combine shopping with hospitality and food, creating a balanced day-long experience. This differs from the historic pattern of luxury shoppers from China, which tended to concentrate a greater share of spending directly on products. Retail destinations that connect shopping, service, dining and entertainment are therefore particularly well placed to benefit.

Turkey and India were highlighted as important emerging markets, with Turkey producing some of the fastest growth over the past 18 months and a notably high-spending customer.

GCC customers continue to have a strong affinity with the UK, although the macroeconomic backdrop remains uncertain. Geopolitical conflict, oil prices and the US mid-term elections were all identified as factors likely to affect confidence, with a fuller recovery not expected before the second half of 2027. Yet growth has not disappeared. It is coming from different places, with more capital being spent domestically and regionally rather than following previous international patterns.

Loyalty can no longer be taken for granted

The second session, ‘The Business of Desire’, brought together André Maeder, CEO of Selfridges Group, Helen Brocklebank, CEO of Walpole, and Andrea Baldo, CEO of Mulberry. The conversation was moderated by Amal Benichou, Managing Director and Global Luxury Lead at Accenture, and turned to loyalty, customer expectations and what makes a luxury brand meaningful today.

One of the most striking findings was that 70% of luxury shoppers have changed their preferred brands. Heritage, reputation and visibility are no longer enough to guarantee loyalty, particularly when customers have more choice and fewer reasons to remain committed to a single name.

As Helen Brocklebank, CEO at Walpole put it: “Visibility is cheap. Meaning is the secret sauce of luxury.”

Meaning comes from authenticity, community and transparency. Customers want to understand what a brand stands for and feel that its values, service and behaviour are consistent. They are not simply comparing products. They are judging the entire relationship.

This is where clienteling becomes so important. Amal Benichou described it as a major priority for the sector: “Clienteling is a hot topic. It’s not about transactions, it’s about building relationships.”

That distinction matters. Effective clienteling is not a series of sales messages or one-off follow-ups. It gives store teams the insight and tools to understand each customer, remember their preferences, communicate in a relevant way and offer thoughtful service across every interaction.

This becomes even more valuable when customer expectations vary between regions, cultures and generations. A great client experience cannot be copied and pasted across every market. Store teams need the freedom, knowledge and context to make the relationship feel personal while still delivering a consistent expression of the brand.

From product-led luxury to relationship-led luxury

The luxury market may be facing a slower and more complicated recovery, but the opportunities are clear. Growth is emerging through resilient categories, new customer markets and experiences that extend well beyond the product itself.

For retailers, that means thinking more broadly about what they offer and more deeply about who they serve. The brands that succeed will connect commerce with hospitality, physical retail with digital insight, and global consistency with genuinely personal service.

Luxury has always been built on exceptional products. Its next chapter will be shaped by exceptional relationships.