What’s driving luxury’s evolution in Asia

Through analysis examining luxury market transformations across fashion, hospitality, technology, and culture over the past year — alongside interviews with more than 65 industry leaders — five key pillars have emerged that define how luxury brands must evolve to create extreme value in today’s market. The research, conducted by Beyond Luxury Group, reveals that successful luxury brands are not competing on product alone, but on clarity of thought and cultural intelligence. These businesses standing out today make sense of what’s happening around them and respond with intentionality, staying close to culture without chasing trends. Opportunity spotting Investment patterns and spending power are shifting. Nearly 80% of high-net-worth individuals now prioritize experiences like travel, wellness, and personal moments over material goods. According to McKinsey’s State of Luxury 2025 report, many have reached saturation where the pursuit is no longer about having more, but about feeling more. This context is evolving rapidly. Global investment in longevity surged to $8.5 billion in 2024, a 220% YoY increase. Meanwhile, wellness tourism is expected to surpass $1.4 trillion by 2027, with hotels increasingly functioning as spaces for personal evolution. The demographic wielding spending power is also changing. From 2018 to 2023, wealth held by women grew faster than the overall market. Powerful signals emerge from new regions as well. In the UAE, Sheikh Mohammed Bin Rashid Al Maktoum has publicly defined tourism as a national priority, aiming to reach a GDP contribution of 450 billion United Arab Emirates dirham ($122.5 billion) by 2031. These shifts invite brands to look beyond traditional territories and ask sharper questions: Beyond direct competitors, what other things might people buy instead? Where does it make sense for brands to stretch? Which new targets can they expand into, and how do they address real needs instead of simply adapting surface codes? Cultural intelligence Brands exist within culture and thrive when they identify cultural tensions, respond to them, and offer symbolic relief. But as desire becomes a reflection of the cultural moment, brands need to understand which tensions shape desire today. Three key forces have emerged: Time: In an era of acceleration and collective exhaustion, people seek to slow down and reconnect with themselves and others. Connection: When attention is fragmented and emotional connection is rare, luxury’s driving desire evolves from exclusivity and scarcity to include participation and belonging. Joy and freedom: In a world full of anxiety and intense routines, joy and lighthearted freedom become rare forms of relief and resistance. Bottega Veneta exemplifies this approach. In a noisy, fast-paced world suffering from digital overstimulation, the brand weaves stories of craft, presence, and connection between artists and artisans through intimate, poetic storytelling that celebrates its 50-year Intrecciato legacy under “Craft is our language.” Juliana Soncini, Brand Director of Havaianas, says that the brand doesn’t chase aspiration through exclusivity, but through lightness, joy, and relaxation — a formula that has helped it reach 94% of Brazilian households and collaborate with luxury brands. Identity crafting In a world where audiences are one scroll away from a thousand competing narratives, only stories rooted in significance and capable of making people feel something will matter. Brands must choose a clear direction and sharpen a point of view bold enough to pierce through the numbness surrounding today’s audiences. Liquid Death exemplifies this approach. In a category dominated by plastic bottles and brands whispering about babbling brooks, Liquid Death packaged water in tallboy cans resembling beer, adorned them with melting skulls, and invited customers to “murder their thirst.” This platform guided the entire brand world and narrative. Since launching in 2019, Liquid Death grew from $3 million in revenue to an estimated $130 million by 2022. Meaningful storytelling requires abandoning brand-centric monologues and expanding the personality spectrum by embracing human traits like vulnerability and humor over perfection. As context grows more complex, crafting relevant identities requires brands to disagree with category conventions and tell stories that create a stir rather than fade into numbness. Experience design Storytelling must transcend words to become experiences that offer meaningful ways to live and materialize the story. Three passion points are shaping today’s experiential landscape: Sports: According to PwC, the global sports sponsorship market will reach $115 billion this year. Sport is evolving from pure competition into a multidimensional arena where fashion, culture, and emotional connection converge. Formula 1 has become a global stage for brands from different industries, with LVMH as one of its major investors. Travel: According to Skift’s Redefining Luxury Hospitality in 2025 report, the hotel market, valued at $140.28 billion in 2023, is projected to reach $369.36 billion by 2032. Brands are capitalizing on this growing segment through partnerships that enrich experiences, like Giorgio Armani partnering with Four Seasons to launch a global tennis tournament for guests. Art and entertainment: From the Met Gala to Dior’s La Galerie to the Chanel Culture Fund, luxury brands are crafting moments of awe through artistic expression. Miu Miu, which retains its status as the world’s hottest brand, has tapped into this space with remarkable consistency, moving from literal clubs to women-led film series like “Women’s Tales.” These growing spaces offer glimpses into cultural momentum, where luxury is no longer craved as eccentricity but as restoration. Each brand must identify passion points that fit its world and craft experiences people wish existed. Culture rebuilding Extreme value creation begins within teams. This requires cultures that encourage people to think differently, take risks, and design models that leave both people and the planet better than before. Fear is quietly holding brands back. According to this year’s State of Creativity report by Lions Advisory, only 13% of respondents perceive their companies as creative risk-friendly, while 29% of brands admit to being highly risk-averse. Brands need strategies that allow failure, recognize technology as a co-pilot, encourage play, and give space to non-linear paths. Louis Vuitton became the first to appoint a global cultural figure, Pharrell Williams, to lead its menswear division. At Disney, embracing failure is so deeply embedded in company culture they coined the term “fail forward.” Designers like Jonathan Anderson are showing how lighthearted experimentation at Loewe can become a strategic asset. What this means The future of luxury lies not in forecasting trends, but in cultivating perspective and shaping what comes next. It’s about knowing when to pause, how to cut through noise, and how to move forward with intention and depth. Across every conversation with industry leaders, the same undercurrent has emerged. Brands standing out today are not necessarily the most visible — they’re the ones that make sense of what’s happening around them and respond with intentionality. They stay close to culture without chasing it and lead by example, not just performance. The five pillars represent a shift in mindset: a move away from reactive branding toward strategic meaning-making. This means competing on clarity of thought and cultural intelligence, where the ability to interpret what matters is as critical as the ability to innovate. Luxury is evolving into something more human, more intentional, and more complex.

Sectors

Insights

Company

What’s driving luxury’s evolution in Asia