Luxury Brands Target Aging Wealth

In 2025, luxury brands are waking up to untapped potential of older consumers — a demographic long sidelined in favor of young, fashion-conscious shoppers? Could this be the main trend for retailers this year?

Those over 50 now control most of the world’s wealthwhich presents a strong and valuable market for luxury goods. This group is defined by strong brand loyalty, a preference for quality over price, and a deep appreciation for heritage and craftsmanship. – values ​​that align with the essence of luxury brands.

Missed Opportunity

“This is a long-lost opportunity for the luxury market,” Bellamy Grindlprincipal and founder, Retaillyticssaid in an interview with PYMNTS.

“The older generation not only has more disposable income but is less price sensitive and more brand loyal. They value quality and heritage, which is perfectly aligned with what luxury brands offer.

“The problem is many feel neglected because media and marketing remain hyper-focused on young audiences. By prioritizing youth, brands risk alienating one demographics that’s it eager to invest in their products. “

What should brands do?

“Luxury brands need to focus on truly engaging older consumers in a way that feels authentic and values ​​their purchasing power,” Grindl said. “Things like refining messaging, expanding channels to meet the customer where they are, and celebrating heritage and craftsmanship to create deeper emotional connections.”

According to PYMNTS wisdom report,”Why One-Third of High Incomes Live on Paychecks,” which surveyed more than 4,200 US consumers to understand how they spend their money across income groups, the highest earners (especially those earning more than $200,000 per year), typically spend a large part of their income on luxury goods and experiences. On average, they spend 9.3% of their income on entertainment, leisure and entertainment and 8.5% on clothing, accessories and personal care.

By expanding their focus to include the older demographicluxury brands can leverage this enormous purchasing power while mitigating the economic uncertainties that come with volatility. tariffs and market volatilityaccording to Sudip MazumderSVP, retail industry lead, North America, in digital consultancy The public will be wise.

Youth Confidence Challenges

“Luxury brands face the challenges of relying solely on youth trends, especially in light of the possibility of new tariffs that will increase production costs, prompting price increases ,” Mazumder told PYMNTS.

“Young consumers are often price sensitive and their preferences change quickly, which makes it dangerous for brands to focus only on attracting them. Meanwhile, older consumers , especially those over 50, hold a significant share of global wealth and tend to value quality, brand loyalty and lasting value in luxury goods.

“A multigenerational approach allows brands to care the two young, fashion-driven consumers and older, wealth-conscious buyers, offering strength and stability through a diverse customer base. This strategy addresses immediate economic challenges and future-proofs brands by embracing digital channels and personalized experiences to meet the changing preferences of age groups.

Luxury brands recognize the value of a balanced approach that appeals to both ends of the consumer spectrum, according to Zachary Robichaud, Instructor, School of Retail Management, Ted Rogers School of Management, Toronto Metropolitan University.

“Luxury brands targeting older consumers is a key trend for 2025, driven by shifting demographics and the purchasing power of this audience,” said Robichaud in an interview with PYMNTS.

“Older consumers now control the majority of the world’s wealth, making them a key demographic for marketers seeking sustainable growth. As the population ages, brands adapting their offerings to align with the preferences of affluent older shoppers, focusing on timeless design, quality and personalized experiences. This change broadens their consumer base and creates loyalty within a market segment that prioritizes value and reliability.

Wealthier shoppers, especially those earning more than $100,000 a year, have a stronger desire for personalized offers, according to PYMNTS Intelligence report,”Personalized Offers Are Powerful – but Often Improper,” created in partnership with AWS.

According to the report, 89% of consumers earning more than $100,000 a year are interested in receiving personalized offers, higher than 83% of consumers earning between $50,000 and $100,000, and more than the 74% of those making less than $50,000 also want personalized offers.

Two More Trends to Watch

In an interview with PYMNTS, Craig Rowleysenior client partnerretail and consumer consultation, Korn Ferrynoted concerns about potential US tariffs on importsthat Retailers may be forced to adjust shipments, change sources, or reduce purchases and create uncertainty.

“Retail continues to focus on reducing costs while improving services,” Rowley explained. “Clients are looking closely at operating costs and looking for savings. The industry is also primarily investing in AI (artificial intelligence). AI can help on facilitate decision making by providing real-time market insights and GIVING merchandise offerings that better meet customers’ needs.”

Going with it, Rowley added, “continues to evolve eCommerce and omnichannel operations to make it easier for consumers to find the products they need, help them make purchasing decisions and, at the same time, reduce the operational costs of eCommerce. Marketers work hard to understand customer segments because boomers retired and millennials converts more from retail than from other sectors. “