Luxury in uncertain times. What’s behind its resilience?

The past five years has been a masterclass in disruption. Geo-political instability, tariffs, inflation, and shifting consumer expectations have made the times hardcore. For the luxury sector, a slowdown in China has only added a layer of complexity. Historically, and against the odds, the luxury sector grew in the pandemic, redefining resilience in the times of crisis. 

Counterintuitive as it may sound, with its elevated price points, luxury should be one of the first categories to falter. Instead, the Kantar BrandZ 2025 report shows total brand value in the luxury category increased 477% from 2006 to 2025. The past year brought a 2% dip among the Top 10 luxury brands, reflecting tougher macro conditions, according to the report. 

Therefore, is luxury recession-proof? Or is there a strategy FMCG and other categories can learn from the sector?

Shared Foundations

Both FMCG and luxury are unified by the power of the brand, the customer, and the people. In both worlds, the brand is the ultimate asset, defined by clear identity, purpose and positioning. Both are relentlessly consumer-centric. In both, their people and teams who bring brands to life are the vital bridge between vision and customer.

Where Luxury Stands Apart 

The luxury sector’s approach to executing on the above foundations contributes to its unique resilience. 

Desirability

In FMCG, brand building often begins with solving a consumer frustration, the search for something more reliable, more effective, something that ‘just works.’ In luxury, the model flips. Luxury brands don’t just solve needs - they create desire. By crafting unique brand universes, they spark the desire to belong, indulge, and aspire. The pull is the emotional connection with the brand.

Brand Identity

Heritage is the heartbeat of luxury. Some maisons have existed for over a hundred of years, and their DNA and values, purpose and codes remain central to their power. These heritage brands don’t just preserve their legacy - they reinterpret it, translating their DNA for contemporary audiences.

Superiority

Luxury is in an endless pursuit of perfection. From artisanal craftsmanship and rare raw materials to exceptional experiences that delight and immerse, every touchpoint signals that a brand exceeds expectations and redefines standards. The pursuit of excellence separates luxury brands not only from other sectors but also from their competition. 

Relevance

Relevance is where legacy meets reinvention. Heritage brand custodians are entrusted to evolve them without compromising their DNA. By reflecting today’s cultural and social context, pushing creative boundaries, while respecting their past, luxury brands maintain proximity to today’s consumer.

Push or Pull

Having worked across FMCG, consumer goods, and fashion and luxury brands, I see the same foundations at play: the power of brand, the focus on the consumer, the strength of the people. However, the approach and execution differ. 

In FMCG, the strategy leans toward brand building and push - driving penetration, solving functional needs, competing on physical value, and earning trust by delivering on the expectations. 

Luxury brands, by contrast, lead with a pull-oriented strategy. It’s about brand curation rather than building, and perceived value rather than physical one. Desire and emotional connection become the ultimate currency. 

Of course, Luxury is not immune to downturns, but it is uniquely resilient. Its formula is mastery of a strong brand identity and desirability, superior experiences and cultural relevance, creativity and innovation. Luxury crafts supreme products and creates brand worlds.