Q3 2025 PRMC Luxe Index<br/>Review & Prospect

Exploring market stabilization and resilient consumer sentiment, tracing renewed momentum and confidence across global luxury sectors.

Macro Rebound & Sentiment Converge, Ultra Luxe Embodies Recovery

[Primary Index Performance Review]

The PRMC Luxe Index closed at 1,796.65 points in Q3 2025, rising by 70.62 points (+4.09%) during the quarter. Its performance lagged behind the MSCI Asia Pacific (+8.47%), S&P 500 (+7.79%), and MSCI ACWI (+7.29%) but outperformed the STOXX All Europe 100 (+3.37%).

[Secondary Index Performance Review]

The PRMC Core Luxe Index closed at 1,899.47 points in Q3 2025, decreasing by 0.29 points (-0.02%) during the quarter;
The PRMC Ultra Luxe Index closed at 2,237.50 points in Q3 2025, rising by 263.51 points (+13.35%) during the quarter;
The PRMC Mass Luxe Index closed at 1,045.48 points in Q3 2025, decreasing by 6.25 points (-0.59%) during the quarter;
The PRMC Experiential Luxe Index closed at 1,533.00 points in Q3 2025, increasing by 39.55 points (+2.65%) during the quarter.

[Macroeconomic Review and Outlook]

In the third quarter of 2025, the global economy continued its moderate recovery, yet "uneven rebound" remained the dominant theme.

Following two years of tightening cycles, major developed economies gradually shifted toward a wait-and-see approach and monetary easing. The Federal Reserve and the European Central Bank signaled that interest rate cuts were on the horizon, contributing to a marginal improvement in global liquidity and a rebound in asset prices from their lows. However, uncertainties surrounding geopolitics and trade friction continued to weigh on market sentiment, limiting the pace of recovery in global consumer confidence.

China market maintained a pattern of structural recovery. On the policy front, efforts to "stabilize growth" and "boost consumption" worked in tandem, with fiscal expenditure continuing to favor high-value-added sectors such as tourism, green consumption, and cultural leisure. The summer consumption peak season drove a recovery in foot traffic at offline retail and luxury stores, although cautious medium- to long-term income expectations among households continued to impose constraints on mid-to-high-end consumption.

US market exhibited signs of "stability amid stagnation." While inflation gradually eased, the high-interest-rate environment and tariff uncertainties pushed up end-product prices, restricting the expansion of household disposable income. Supported by asset price recovery and stable employment, high-net-worth individuals sustained their high-end consumption, whereas mass-market consumers grew more rational in their spending.

Europe market recovery remained sluggish. Weak manufacturing performance in core economies and persistently high energy costs continued to dampen consumption momentum. Although inflation has become more manageable, cost-of-living pressures and low confidence indices have kept middle-class spending willingness subdued. Additionally, limited fiscal space within the Eurozone and insufficient coordination among member states on expansionary policies have resulted in limited stimulus effects, making it difficult to generate a meaningful boost in aggregate demand.

Looking ahead to the fourth quarter of 2025, the global luxury industry is expected to enter a "value restructuring phase within a period of structural adjustment." Luxury indices are likely to fluctuate amid a dynamic balance between valuation recovery and fundamental divergence.

On the macroeconomic front, major central banks may initiate easing cycles by year-end, and the marginal improvement in monetary conditions is expected to revive risk appetite in the markets. Continued easing of global inflationary pressures will provide a more favorable financing and spending environment for luxury consumption. At the same time, moderate fiscal policies in Europe and the U.S., coupled with enhanced consumption-side stimulus in China, are poised to jointly drive a phased recovery in high-end spending.

From a consumption trend perspective, “experience-driven consumption” will remain the key long-term growth engine for the industry. High-net-worth consumers are shifting their focus from material goods to emotional experiences and lifestyle investments—areas such as travel retail, boutique accommodations, art exhibitions, and fine dining continue to expand, injecting growth momentum into the Experiential Luxe Index.