Luxury market shifts toward stealth retail and quiet luxury

The luxury goods sector is undergoing a strategic shift toward ‘stealth retail’ and ‘quiet luxury,’ driven by a changing demographic of high-net-worth consumers. According to reports from Bain & Company and Altagamma, the total number of luxury clients has decreased from 400 million in 2022 to approximately 330 million, as rapid price increases have alienated many wealthy buyers.

Market dynamics now show that a tiny fraction of the ultra-wealthy—just 0.1 percent of the clientele—accounts for roughly 37 percent of the sector's total profits. This has led brands to prioritize exclusivity and invisibility over mass visibility. For example, Hermes limits access to certain iconic products, such as the Birkin bag, requiring customers to build a long-term purchase history. While this practice faced antitrust allegations in California, the brand prevailed in court.

This trend toward subtle status symbols is reflected in the growth of brands like Brunello Cucinelli, which saw revenue increases of up to 23.5 percent, and Loro Piana, an LVMH brand. In China, this aesthetic is known as ‘laoqianfeng’ or ‘old money style,’ emphasizing quality and fabric over prominent logos.