24/25 PRMC Luxe Index
Review & Prospect

May 01, 2025

Empowering investors to navigate evolving market trends, respond agilely to short-term fluctuations, capture key opportunities, and chart a new course for luxury growth guided by long-term value.

Luxury in Transition:
Defining the Next Chapter of Growth

In 2024, the luxury industry index reflected profound transformation amid the interplay of consumer upgrading, cultural integration, and capital flows. From the slowdown in consumer demand to the rise of emerging markets and the intensifying structural divergence within the global luxury sector, capital market performance underscored both the industry's resilience and challenges. The strong purchasing power of senior consumers, the widespread adoption of digital technologies, and the gradual implementation of sustainability initiatives drove innovation and transformation in the sector. Some brands demonstrated a distinct competitive edge in digital marketing and experiential consumption, leading to sustained valuation growth.

Looking ahead to 2025, the luxury industry is poised to enter a new phase where deepening globalization coexists with regional differentiation. The recovery of key global markets and the further expansion of emerging ones will provide continued momentum for industry growth. Meanwhile, "hyper-localization" and "digital co-creation" will emerge as central themes in luxury brand expansion. Investment strategies will increasingly focus on long-term trends, particularly category extensions and the continuous expansion of global market share among luxury brands. Companies that lead in mergers & acquisitions and supply chain innovation will gain a stronger competitive edge in 2025, becoming key drivers of index growth.