a Unique Perspective

Short term existence of black holes.


Introduction
Explore NBCUniversal's latest perspectives and insights into the Luxury industry.This report provides an overview of recent marketplace dynamics, our prediction of key future trends impacting the industry, and strategic recommendations for Luxury brands and marketers as they navigate what's next.

Our Approach
At NBCUniversal, we have a legacy of working with a diverse range of Luxury partners to build their brands.This report has been created based on NBCU's: • Ongoing Industry Evaluation • Conversations with Luxury Advertisers and Agencies

• Continual Marketplace Analysis
• Examination of Consumer Attitudes towards the Luxury Industry and new regulations, luxury brands have been working to make their products, operations, and future vision more sustainable.The biggest areas of focus have been on creating industry-wide collaborations and increasing circularity. 1ands began shifting focus to a small group of the highest-spending customers (who account for the majority of sales), even re-positioning as "ultra-luxury," as they are less likely to be impacted by an economic downturn, compared to aspirational buyers who reduced luxury spending. 2xury brands, including Dior, Gucci, Givenchy Beauty, Rimowa, and Demain, continued innovating in the metaverse and launching NFTs, going against the grain as other industries pulled back, as brands focus on "experiential luxury." 3 Though not a new trend among affluent consumers, 'quiet luxury' became a hot topic, due to not wanting to flaunt their wealth amidst widespread "economic anxiety," 4 as well as the popularity of the final season of HBO's Succession.

Navigating & Responding to Shifting Marketplace Dynamics & Consumer Attitudes
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Auto
As affluence continued to grow, the US premium and luxury car market became more competitive as the overall industry trended towards being a luxury market.The $80K-$149K 1 segment is more competitive as new brands enter & current brands expand.

in 5
new registrations in March 2023 was a luxury vehicle 2

Jewelry
Broadening their reign and further solidifying their luxury status, more brands entered the luxury jewelry space in '23.As newcomers join the luxury and "haute joaillerie" space, they are building their brands reflective of contemporary cultural values such as experience vs. product.

Travel
Sustainable luxe travel continued to increase in importance for brands and travelers-across affluence levels, ethnicity, race 4 .While environmental sustainability controls the spotlight, brands and travelers are finding ways to contribute to social and economic sustainability.

47%
of Affluent/ High Net Worth travelers feel obligated to be more sustainable during luxury travel (+9pp vs. 2021) 4

Resale
The popularity of Y2K

Standing Out via OOH
Fashion house Coach created an eye-catching 3D OOH experience with Lil Nas X to get onlookers to be confident and embrace all different facets of oneself.
Coach continued this initiative and deepened their collaboration with Lil Nas X over the last year.

Teaming Up with Sports
Louis Vuitton won the World Cup in terms of audience engagement with their campaign "Victory Is a State of Mind" with Messi and Ronaldo at the forefront with +180M social media engagements.

Leaning into Cultural Moments
Hugo Boss continued to harness culture in its latest collaboration with with internationally followed gamer and cosplay TikToker Bella Poarch who touts the third most followed account on the platform.Their partnership extending from marketing to fashion lines.
Click on the image to read more

Break Through with Partnerships e.g., collaboration steeped in tradition
Long-standing values and traditions, giving brands the opportunity to: The latest fast-moving fads, spanning:

Spark Emotion via Relevant Talent e.g., featuring voices that include and don't alienate
Instead of responding to modern culture on the surface, it will become deeply rooted in everything Luxury does, big or small.
The products they craft, the tech they adopt, and the experiences they build, should evoke feeling when they share it with the world, long and short-term.

60%
African American Gen Z identify as mostly or fully financially independent

Luxury Shopping Lines Get Blurred
The physical meets digital shopping experience feels more natural to consumers now.
As new tech is introduced and business models adapt to the needs of emerging buyers, customers will experience the same emotions and excellence no matter where they are shopping, now without questioning it as much.If luxury builds it, the wealthy will come, around the globe and beyond.
As experience takes precedence for luxury consumers, the industry will foster relationships with loyal clients by rewarding them with unique moments across destinations, that build lasting memories and drive incremental spend for brands.

Feels like saving when making luxury purchases in Europe and receiving VAT Refunds
Luxury airport shopping has its benefits through Duty Free

8M
Outbound Chinese tourist travel in 2022 1

180M
Expected to reach prepandemic levels in 2024 2 As travel returns to pre-pandemic levels, luxury goods could see a boost thanks to the "feel-good factor" and travel incentives

L U X E C O L L A B O R A T I O N S : Jimmy Choo x Mytheresa Venice experience with gondola tour and private culinary journey 5 E X T R E M E E X P E D I T I O N S :
High-risk and one-of-a-kind e.g., Virgin Galactic trips to space, $450K/ticket avg.cost 6

E X A M P L E B R A N D S
1% of Total Ad Spend 1 7

Luxury Auto
Why to watch: Luxury auto has shown resiliency in the face of economic downturns, built to meet the needs of every type of luxury buyer, from high-net-worth to aspirational, across ethnicities and cultures

E X A M P L E P R O G R A M S :
The Well New York and Bay Harbor Islands, Mono Threading

Luxury Wellness
Why to watch: The wellness industry is one of the fastest-growing markets in the world and expected to reach $7T by 2025 1 , with affluent buyers more willing to pay a premium and travel far and wide in the name of healing Sources: Global Wellness Institute; health growth value combines traditional and complementary medicine plus public health, prevention and personalized medicine

Key Luxury Trends We Expect to Influence Marketing & Media Strategies
Adapting to the New Age Instead of responding to modern culture on the surface, it will become deeply rooted in everything Luxury does, big or small.

Cultivating the Relationship with Newcomers
Building loyalty with Gen Z now will benefit in the long run because it's not assumed they will show up only for craft and excellence.

Luxury Shopping Lines Get Blurred
The physical meets digital shopping experience feels more natural to consumers now.

Seeking Out Elevated Experiences
If luxury builds it, the wealthy will come, around the globe and beyond.
Evolving Subcategories & Brands to watch include Luxury Auto, Luxury Wellness

Media Trends to Watch
The industry is invested in the future, pursuing innovation and new partnerships to establish brand presence across channels and platforms

Growth & Brand Building
As revenue rises, so too does ad spend, tapped not just for reach and engagement but also increasing product price points.The Impact Of Marketing The more aware consumers are of a brand's ad, the more likely they are to consider & purchase

Emotional Connections
Building quality connections and being relevant on luxury's terms and ours

Premium Environments
Reflecting luxury's image and position, where their audience can be found

Aligning with Big Culture
Audi sponsored Top Chef VIP Season 2 across Peacock and Telemundo.com,surrounding the series with its new creative -built for the first time in Spanish versus being dubbedspotlighting Hispanic culture.

Owning Seasonal Moments
Louis Vuitton celebrated this year's Mother's Day with an Apple News campaign that included a Wish List spotlight, a targeted rotational display, and an outstream video placement.

Driving Engagement through Innovations
Paco Rabane partnered with Elle Fanning on a Peacock Ad Innovation seeking to increase awareness and consideration for the brand's new fragrance while also driving traffic and online conversion through the feature of a QR code.
iconic CC throughout various looks in the Barbie movie.
From live event sponsorships (LVMH X Paris 2024) to athlete collaborations (Prada and Reilly Opelka), expect to see Luxury catch hold of share typically reserved for traditional athletic brands."Just as we saw more luxury brands getting into the sneaker space, we're gonna see the same thing [with sports]."-Matt Moorut, Gartner E M P H A S I S O N A T E G I C C O N S I D E R A T I O N S & P A R T N E R S H I P E X A M P L E S Mercedes teamed up to show the power of two highend, elegantly-designed revolutions: the Mercedes EQS SUV and the E! Glambot at the 2023 Grammy & Oscar Awards.

Key Luxury Trends & Sub-Categories We Expect to Influence Marketing & Media Strategies
1 2 Adapting to the New Age Cultivating the Relationship with Newcomers Luxury Shopping Lines Get Blurred Seeking Out Elevated Experiences Evolving Subcategories to Watch Luxury Auto, Luxury Wellness N B C U N I V E R S A L Adapting to the New Age Sources: 1. Business of Fashion; 2. WWD; 3. The Fashion Pact; 4. US Open; 5. Robb Report Capture Attention With Small Culture Win Audiences Over with Big Culture Resonate on Values e.g., bringing green efforts to the forefront

Gorman 5 Real-Time Relevance Swells of Popularity
"Last year, it was a little bit like, 'Should we be doing this?'This year, it's, 'How do we do it?'TheFashionPact from Kering, Chanel, Chloe, etc. 3Tiffany X US Open Trophies & Activation 4 Prada 100% recycled fine jewelry with Amanda e.g., Luxury goods and K-Pop (e.g., Loewe, Dior,, D&G) 2 N B C U N I V E R S A L Gen Z will be luxury's primary shopper by 2030.While that's not today, building

loyalty with them now will benefit in the long run because it cannot be assumed they will show up only for craft and excellence.
25%currently feel secure with finances, but predict they will be more in the future 4How Gen Z Defines WealthSources: 1. Luxe Digital; 2. Intuit Prosperity Index Study Jan 2023; 3. Charles Schwab Modern Wealth Survey 2023; 4. Bankrate Survey; 5. Fortune; 6. Business of Fashion They

And Tap AI For a Personalized & Superior Customer Experience
E.g., Amorepacific's Authentic Color Master by Tonework facial recognition tech answers younger, diverse buyers' desire for customized beauty, matching unique skin tones & conditions 4

in a lifetime, experiential luxury in new destinations 5
Sources: 1. GAM Investments; 2. Next Made in France; 3. Forbes; 4. Mintel Luxury Travel US 2023; 5. Glossy ; 6. Financial Times Affluent High-Net Worth want to see new parts of the world and learn 4 of excitement exploring once

Occasions Opportunities Reflecting Culture & Societal Expectations
Leaning into "love of the game" with live Sports