The luxury goods sector is a dynamic industry requiring leaders who combine innovation with respect for heritage.
The global luxury market reached €1.5 trillion in 2023, with Japan leading growth in 2024 due to a tourism boom. However, headwinds such as economic slowdown and shifting consumer expectations are influencing strategies. Key trends include:
Our team in Friisberg possesses unparalleled expertise in the global luxury goods sector, rooted in decades of first-hand industry experience and a commitment to staying ahead of market trends.
We know the luxury sector, its many facets and its various fields of activity, because we have experienced it from the inside, in important companies that feed it. We have learnt the concepts of "tailor made" and "customisation" that are specific to this world, and we apply them in the selection of the professionals that the sector requires. We continue to monitor its trends and evolutions in terms of digital transformation, sustainability and consumer expectations to ensure that the candidates we propose are 'tailor-made' to the client's needs and able to lead and innovate. Our focused experience in the industry gives us a unique perspective, allowing us to assess candidates in depth and find those who possess the qualities that the best luxury brands need.
After a period of robust growth, we see that the luxury sector is facing a slowdown. Factors such as economic uncertainties in major markets like China and the U.S., along with increased prices, have contributed to this deceleration. Notably, LVMH reported a 3% drop in sales in Q3 2024, marking its first decline since the COVID-19 crisis.
Consumers are increasingly favouring understated elegance over conspicuous branding, and this 'quiet luxury' trend emphasizes high-quality, timeless pieces without overt logos, reflecting a shift towards subtlety and sophistication. The younger generations, particularly Millennials and Gen Z, are becoming significant drivers of luxury consumption. They prioritize experiences, sustainability, and authenticity, prompting brands to adapt their strategies to meet these preferences. There's also a growing consumer preference for luxury experiences over products. This includes exclusive events, personalized services, and unique travel opportunities, leading brands to expand their offerings beyond traditional goods.
Considering the global luxury market in 2024 so far, we are witnessing a change in consumer behaviour in specific regions. China’s economy has been slowing down and Chinese consumers have been questioning their luxury buying transactions. Due to the weakening Yen, Chinese consumers are spending their shopping budget in Japan rather than their local market. For this reason, Japanese sales have been growing despite the global trend. Other markets, including China and the U.S., are experiencing stagnation or decline. With a 23% sales increase in Japan and a growth in all regions, Hermès stands out with its long-term focus and continued success story.
By consistently staying ahead of industry trends, including digital transformation, sustainability, and the evolution of consumer expectations, we ensure that the candidates we recommend are equipped to lead and innovate. Our targeted industry expertise gives us a unique vantage point, enabling us to assess candidates holistically and find those with the qualities that top luxury brands need.
These trends indicate a dynamic and evolving luxury market, with brands needing to adapt to changing consumer behaviours and global economic conditions to maintain their relevance and growth.
For many luxury brands, filling senior roles also requires a sensitivity to cultural and geographic considerations, as well as an understanding of emerging markets and global consumer trends. We incorporate these factors into our strategy, ensuring our clients can access the most suitable candidates regardless of their location.
My colleague Leila Othieno, who has worked extensively in the fashion and entertainment industries, recently noted that whether it’s goods, experiences, or hospitality, the word ‘Luxury’ evokes a feeling - something intangible yet unforgettable. It carries its own kind of magic, and at the heart of this magic lies one critical element: people.
There is no doubt that leaders who inspire, who cultivate cultures that bring out the best in their teams, and who connect authentically are essential. In the luxury sector, where every detail matters, selecting the right leaders is more than a strategic decision - it’s an investment in the brand’s legacy and future.
The luxury goods market in New York saw stable growth despite challenges from macroeconomic uncertainties and changing consumer behaviours. Recovery in tourism, particularly from international visitors, supported demand for premium products and experiences. However, growth slowed compared to prior years due to inflation and cautious spending among domestic consumers. Key trends included a focus on "less but better" purchases, with watches and jewellry remaining strong performers. Emerging preferences for subtle, minimalist styles ("quiet luxury") contrasted with past tastes for logo-heavy items, reflecting broader economic pressures. Additionally, younger luxury buyers leaned into tech-driven innovations and showed interest in sustainable and ethical practices, signalling a shift in brand engagement strategies. These developments indicate the sector's need to balance exclusivity with accessibility to maintain relevance and growth.
Luxury brands are unique because their leaders must embody the brand's DNA while driving growth and innovation. Our recruitment process is highly personalized - we invest time understanding each brand's identity, values, and market positioning. This enables us to find leaders who can authentically connect with consumers and inspire teams. Confidentiality is also crucial in this sector. We prioritize discretion throughout our process, handling sensitive matters with professionalism to maintain the trust and integrity that our clients expect.
In 2024, Poland's luxury goods market is thriving, driven by rising consumer confidence, economic stability, and growing wealth. Premium and luxury cars lead the sector, with increasing demand for electric and hybrid models. Personal luxury items such as designer apparel, watches, and jewelry are also popular, reflecting a cultural trend to display status through high-end brands. E-commerce is gaining traction for personal luxury, although in-store shopping remains significant for items like beauty products and fashion. Meanwhile, luxury real estate and experiential luxury, such as premium hospitality, are expanding due to rising incomes and a surge in domestic and international tourism.
When we work with companies, our role goes beyond filling a position; we build enduring partnerships with our clients. We remain involved as their businesses evolve, providing insight and expertise to help them navigate change. Our track record speaks for itself - we consistently place leaders who make meaningful contributions, enhancing their brands’ market presence and cultural significance. Our success is rooted in a deep understanding of the luxury sector, mirroring the emphasis on reputation and relationship-building that defines the industry.
Team Friisberg: The key lies in understanding the unique essence of each brand and aligning it with leaders who can honor its heritage while fostering innovation. It’s a delicate balance that requires industry knowledge, a trusted network, and an unwavering commitment to excellence. For luxury brands, every leadership choice is a strategic investment in their legacy and future.
Recruiting senior talent for luxury brands demands an intimate knowledge of the industry’s nuances, trends, and cultural significance.
Friisberg’s team combines first-hand experience, strategic insight, and a tailored approach to connect luxury brands with visionary leaders who drive both tradition and transformation.
