"Quiet Luxury" Moves from the Runways to the Stock Market

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Remember "quiet luxury" and "stealth wealth"? They were the trendiest buzzwords in the fashion world last year as the wealthy (or aspirationally wealthy) gravitated towards products that whispered as opposed to screamed fine quality.

Flashy logos and conspicuous consumption are still out for 2024 — but the quiet luxury movement is not just relegated to the runways now, it's also turning up in investment portfolios.

Per CNBC, Hermes, Prada-owned Miu Miu and Brunello Cucinelli are among the "quiet luxury" brand names that are performing well as stocks. These companies outperformed their loud peers by 23% points, said Hou Wey Fook, chief investment officer of DBS Bank. Investors appear to be looking beyond traditional luxury picks like Gucci and Burberry. LVMH, Richemont, and Swatch are also investor favorites, as they're better known for their understated elegance.

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In general, luxury stocks are often recession-proof since they cater to high-net-worth individuals who aren't as fazed by economic downturns. But the widespread embrace of quiet luxury reflects a genuine shift in consumer behavior that luxury real estate professionals should watch closely.

This isn't just about picking stocks. It's about understanding luxury buyers and sellers, and the world they live in. Affluent buyers are likely looking for homes that exude quality and craftsmanship, as opposed to screaming "luxury" with flashy status symbols and designer labels. By staying ahead of the curve on trends like quiet luxury, agents can become trusted advisors and build lasting relationships with their high-value clients.

Craftsmanship, quality, and timeless design win the day when it comes to luxury properties right now.

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