​How EY’s market-leading research is reshaping luxury strategy

The luxury industry is experiencing unprecedented turbulence. After decades of sustained growth, the sector faces its most significant challenge yet: a dramatic slowdown that has triggered $240 billion in market losses and profit warnings across major luxury houses.

​Amidst this slowdown, there remains a lot of emphasis on the uber wealthy and VICs (Very Important Clients). However, the other problem brands are facing is the slowing number of net new aspirational clients at the start of the funnel. Since today’s aspirational clients often become VICs in the future, brands that get in early to build relationships with these clients will reap the benefits of their loyalty later. 

​Phronesis was very excited to partner with EY to take a closer look at this often-overlooked cohort. 

​The Challenge: A Luxury Industry at a Crossroads 

​The challenge was multifaceted: EY needed the entire project completed—from survey design through execution to final report delivery—in under four months to meet EY's strategic publication schedule. 

​Additionally, the research needed to go beyond surface-level analysis to uncover the deeper motivations and behaviors driving luxury consumption decisions among aspirational clients, an area that had received limited focused attention in existing industry studies. 

​The Solution: Comprehensive Multi-Market Research with Advanced Segmentation 

​Working closely with EY's luxury consulting team, Phronesis developed a research methodology designed to capture nuanced insights across diverse markets and consumer segments. We surveyed 1,672 participants across 10 key luxury markets, including the US, Mainland China, Germany, Japan, and the UAE. The study focused deliberately on high-potential aspirational luxury clients, with strategic emphasis on millennials (56% of respondents) as the most influential cohort in today's luxury market. 

​Our approach included: 

• ​34 structured questions exploring five core themes: motivations and values, price-quality perception, channel preferences, brand experiences, and alternative business models 
• ​Advanced statistical clustering to identify five distinct client segments based on behavioral and attitudinal data 
• ​Cross-generational analysis spanning Gen Z to baby boomers 
• ​Geographic variations across key luxury markets 
• ​Income and spending level analysis covering households earning €100,000 to €400,000+ annually 
  

​The Results: Leading Thought Leadership and Client Impact 

​The research resulted in a comprehensive 66-page report that has positioned EY as an authoritative voice on aspirational luxury client behavior. The study provides luxury brands with detailed insights into client segmentation, market-specific variations, and emerging business model opportunities. 

​The research has already demonstrated its value to leading luxury brands. 

​Charlotte Tranchant, Corporate Social Responsibility Director at Christian Louboutin, noted: "The insights of this survey help us to identify our customers' expectations at a worldwide level, information that we often don't have the time to capture. It's a decision-making tool that will help us to move forward on certain issues on which we're still hesitating." 

​Jack Wu, Managing Director of Regional Markets, Client and E-Commerce at Dunhill, added: "This survey's insights into motivations and values are invaluable for understanding client decision-making, particularly the nuances across key markets. This understanding will enable us to develop more effective go-to-market strategies." 

​Supporting Strategic Consulting with Data-Driven Insights 

​This collaboration demonstrates how research that goes beyond data collection can provide strategic intelligence. The 2025 Luxury Client Index became EY's flagship thought leadership piece for the luxury sector, providing their consultants with credible, detailed insights to support strategic recommendations for luxury maisons worldwide. 

​Download the full report here: EY 2025 Luxury Client Index 

​The EY 2025 Luxury Client Index represents the kind of focused, strategic research that helps consulting firms provide greater value to their clients. By examining underexplored market segments with rigorous methodology, such studies create new frameworks for industry understanding and strategic decision-making. Discover how Phronesis‘ Lifestyle & Media team helps leading companies succeed in the luxury and HNWI sector.