Millennials, Gen Z Redefine Luxury: Experience, Identity, and Meaning

New consumer research from marketing services firm Assembly Europe reveal consumer behavior patterns of Millennials and Gen Z that “is challenging long-held [luxury] industry assumptions — prioritizing experience, identity and meaning over exclusivity, craftsmanship and prestige alone.”

Due to this shift, researchers at Assembly said the younger generations are redefining luxury.

The report, titled the “New Code of Luxe,” identified three key trends and is based on primary research from more than 3,000 ultra-high-net-worth shoppers from the U.S., the U.K., India, Singapore and Vietnam, and zeroed in on high spenders in fashion apparel, jewelry and travel. “The report uncovers key shifts in motivations, brand touchpoints and purchase behaviors, mapped against market nuances,” the report’s authors said.

One of the three trends identified include that experience is the “New Centurion.”

“The data reveals that spending on wellness, travel and experience-focused luxury is set to grow at over twice the rate of luxury goods,” the report’s authors said, adding that for younger shoppers, “growth, wellness and adventure are increasingly prioritized over accumulating possessions.” The report noted that brands are no longer just competing with other luxury product makers, “they are also up against those delivering immersive, identity-defining experiences.”

For retailers and brands, the researchers said they need to showcase how their product offerings complement luxury experiences as well as modern lifestyles. “Media can become part of the experience,” the report stated. “Virtual try-ons, AR experiences and cinematic storytelling are tools that help consumers connect the offering to a broader experience.”

The second trend identified centers on “the power of iconic heritage and cult appeal.”

“Luxury fashion is becoming increasingly polarized,” the report stated. “On one end, timeless heritage icons like Hermès and Chanel remain strong by consistently embodying craftsmanship and tradition. On the other hand, rising cult labels such as Loewe, Jacquemus and Miu Miu are capturing the imagination of a younger generation, with search interest growing by over 50 percent compared to category benchmarks. However, in today’s era of choice, more than 50 percent of luxury shoppers are now extensively researching their options, remaining in a ‘constant state of consideration.’”

What does this mean for heritage brands? The researchers said now is the time to “infuse innovation” to engage younger audiences.

“For cult favorites, sustaining the hype requires deeper engagement,” the report’s authors said, adding that to build long-term loyalty, “brands should focus on long-form narratives, curated partnerships and custom digital assets that showcase both craftsmanship and cultural capital.”

The last notable trend identified was “beauty as a ritual of self-expression.” Here, the data showed that 71 percent of luxury shoppers polled “express pride in their cultural identity, and 42 percent seek brands that reflect their personal values.”

“With consumers increasingly favoring brands that feel personal and locally resonant, beauty is emerging as a central pillar of luxury, driven by premiumization and a rising focus on wellness,” the report stated. “Luxury consumers are embracing high-quality, personalized beauty products as a form of self care and self-expression.”

The report noted that some luxury beauty brands “are witnessing search interest spike to 85 percent, showing that it has transformed into an accessible, daily ritual.” For advertisers, researchers suggest leaning into hyper-local storytelling as well as cultural relevance. “This includes collaborating with local influencers, artisans, and creators who embody regional aesthetics and values,” the report’s authors said.