The new fragmented luxury: why younger generations choose small indulgences over major purchases

For decades, luxury was built around major acquisitions, carefully planned decisions and exceptional moments. Today, that framework is being rapidly redefined by younger consumers. In 2025, particularly after the latest holiday season and at the start of a new economic cycle, a clear pattern has consolidated: fewer large purchases and a stronger focus on frequent, flexible and emotionally driven indulgences.

This shift is not a temporary trend, but a deep transformation in the relationship between consumption, identity and life expectations. For the luxury sector, understanding this evolution is essential to anticipate how demand will develop in the years ahead.

From aspirational luxury to everyday luxury

Younger generations, especially Gen Z and late millennials, no longer view luxury as a distant goal linked to the accumulation of long-lasting assets. Instead, they prioritize immediate enjoyment, personal experiences and products that fit seamlessly into an evolving lifestyle.

This behavior fuels the rise of so-called small indulgences: lower-ticket items, limited editions, miniature versions of iconic products or premium services accessible for a limited time. Luxury moves away from being a future promise and becomes part of daily life, fragmented into multiple consumption moments.

Rental, resale and subscription: the new ecosystem of desire

One of the clearest indicators of this transformation is the sustained growth of circular models. Fashion rental, luxury resale and subscription systems are no longer niche alternatives; they are becoming strategic channels.

For younger consumers, these models offer three decisive advantages:

• Flexibility: access to exclusive pieces without long-term commitment.
• Constant renewal: the ability to change frequently, aligning with a fluid sense of identity.
• Ethical coherence: a perception of more responsible consumption without sacrificing aesthetic pleasure.

Rather than weakening brand positioning, many luxury houses are beginning to integrate these models as controlled extensions of their brand universe.

Digital gifting and dematerialized consumption

Another defining feature of this phase is the preference for digital gifting formats: premium gift cards, virtual experiences, exclusive memberships or early access to launches. Physical objects give way to promises of access, belonging and personalization.

This form of consumption extends the relationship between brand and client beyond the moment of purchase and fits perfectly into a logic of continuous luxury, where each interaction becomes part of a single emotional journey.

One customer journey, not isolated purchases

The most relevant aspect of this shift is that it can no longer be understood as a series of independent acts. Younger consumers build their relationship with luxury as a continuous journey, starting with digital inspiration, moving through temporary use, resale or exchange, and projecting toward future decisions.

In this context, loyalty is no longer measured by the repetition of large purchases, but by a brand’s ability to remain present across multiple moments in the customer’s life, adapting to both economic realities and emotional needs.

Strategic implications for the luxury of tomorrow

For high-end brands, this transformation brings clear challenges and opportunities:

• Designing products and services tailored to premium micro-consumption.
• Integrating flexible models without losing control or coherence.
• Rethinking the value of the object versus the value of the experience.
• Building narratives that accompany clients over time, not only at the point of sale.

The luxury of the future will not be defined by the size of the purchase, but by the depth of the relationship. Brands that understand and embrace this logic will be best positioned to remain relevant in an increasingly fragmented, digital and experience-driven market.