Insights

Report: 60% of Luxury Consumers Prefer Brands Prioritizing D&I

Recent reports indicate that 60% of luxury consumers are more likely to purchase from brands that prioritize diversity and inclusion (D&I).

Published: May 25, 2024 2:14 PM

By Jeanel Alvarado

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Report: 60% of Luxury Consumers Prefer Brands Prioritizing D&I

Recent reports indicate that 60% of luxury consumers are more likely to purchase from brands that prioritize diversity and inclusion (D&I). According to a study by Boston Consulting Group, companies with above-average diversity saw a 19% increase in innovation revenue over three years. This correlation between diversity and financial performance highlights why luxury brands increasingly focus on D&I initiatives.

Luxury brands have traditionally targeted high-net-worth individuals (HNWI) and aspirational consumers willing to pay a premium for exclusive, high-quality products. However, the modern luxury consumer base is becoming more diverse, reflecting broader societal changes.

A Diversity for Social Impact report in 2023 noted a 35% rise in luxury goods consumption among people of color in the USA, with similar trends observed in Europe, Singapore, Japan, Hong Kong, and other G7 nations. It projected a 16% increase in spending on luxury goods and services by diverse consumer groups worldwide in 2023.

The financial benefits of embracing diversity and inclusion are clear. The personal luxury goods market grew by 9 to 11% in the first quarter of 2023 compared to 2022 and is expected to grow from €345 billion to €530-570 billion by 2030.

This growth is attributed to the increasing purchasing power of diverse consumer groups and the expansion of luxury markets into emerging regions like China. Luxury Consumer’s Demand Diversity and Inclusion Consumers today demand representation and inclusivity in the brands they support…

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