Luxury Transforms: From Product to Ultimate Experience Economy
Parijs, vrijdag, 4 juli 2025.
KPMG reveals a fundamental shift in the luxury sector: brands are evolving from mere product sales to integrated experience platforms. The research shows that luxury groups are strategically investing in high-end tourism services, wellness, and cosmetics. Notably, the luxury cosmetics market is expected to double from 20 to 40 billion dollars by 2027. The sector is shifting from superficial luxury to a more holistic approach, focusing on ‘inner beauty’ and ‘better living’, with customer experience at the centre instead of just products. This transformation reflects a profound shift in consumer preferences towards integrated, meaningful luxury experiences.
Luxury Brands Transform Strategic Focus
Major luxury brands are shifting their strategic course towards comprehensive experience platforms, no longer focusing exclusively on product sales. The KPMG research reveals a fundamental shift in the luxury sector towards integrated services in tourism, wellness, and cosmetics [1].
Growing Cosmetics Market Potential
The luxury cosmetics market shows a promising growth expectation, with a projection to grow 100% from 20 to 40 billion dollars by 2027. This expansion offers brands the opportunity to reach a broader customer base and develop more accessible luxury solutions [1].
Shift Towards Holistic Experience
Luxury brands are evolving beyond traditional retail formats and are now focused on creating profound, meaningful experiences. The focus shifts from superficial luxury products to a more holistic approach to ‘inner beauty’ and ‘better living’ [1].
Concrete Brand Strategies
Leading luxury groups like LVMH are strategically investing in high-end tourism services, including exclusive hotels such as Bulgari and Cheval Blanc. Additionally, they are focusing on advanced wellness experiences that go beyond traditional spa concepts [1].