In recent years, income inequality has been growing rapidly on a global scale; the income gap is even widening gradually in Japan. 3.2% of households in Japan earn JPY15m or more. “High-income household”, “power couple”, “power family”, “income-rich” and “newly affluent” are all terms used by major research firms to define the different consumer categories that make up this high-earning demographic. Consumers in this demographic account for a large proportion of high-end and luxury product consumption, since such products are out of reach for much of the general public.
The consumer survey for this Report focuses on high-income households with a household income of JPY15m or more and explores how brands can develop luxury consumption in Japan based on perceptions and behaviours towards luxury products.
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EXECUTIVE SUMMARY
- Overview
- Scope and definitions used in this Report
- Global market overview
- In context: Luxury consumption trends among the affluent
- Understanding the income-rich sheds light on luxury consumption potential
- Overview of the Japanese market and consumers
- Income-rich consumers seek physical and mental enrichment, experiences and leeway
- Demographic characteristics like gender and age affect luxury consumption
- Opportunities in the Japanese market
- Tailor business to the four luxury consumer groups
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Global market overview
- In context: Luxury consumption trends among the affluent
- 1. The affluent and their assets on a growth trajectory
- The HNWI population and their wealth is increasing each year
- Graph 1: proportion of wealthy individuals, 2023
- Graph 2: share of total HNWI wealth, 2023
- North America’s HNWI population is the world’s largest and wealthiest affluent population
- Graph 3: world’s HNWI population, 2019-23
- Graph 4: world’s HNWI wealth, 2019-23
- Momentum behind US ultra-wealthy is only increasing
- Graph 5: number of billionaires, 1990-2023
- 2. Affluent consumers drive luxury consumption
- 75% of high-income Chinese consumers buy luxury products
- Graph 6: consumers who have bought luxury goods in the last 18 months, by monthly household income and age, 2023
- In the UK, too, high-income consumers account for the largest proportion of luxury purchases
- Graph 7: consumption of luxury goods in the last 18 months, by monthly household income, 2023
- The EU also sees high-income households continue to drive luxury market growth
- Graph 8: European consumers who have bought luxury goods in the last 18 months, by monthly household income, 2023
- The top percent of affluent consumers are the most loyal
- Graph 9: luxury shopper segment, by AHNW consumers vs general population, 2024
- 3. Luxury market trends
- Luxury purchasing slows across key markets
- Graph 10: luxury purchasing levels, by country, 2022-24
- However, forecast for up to 2029 expects growth for luxury market
- Graph 11: market size and forecast, reported sales and forecasts (excluding VAT), 2009-29
- APAC leads sales by region
- Graph 12: sales by region, 2013-23
- 4. Luxury product purchase motivators
- Quality is the main purchasing factor
- Graph 13: luxury purchasing drivers, by country, 2024
- For quality, high-income consumers have even higher standards
- Actively making memories, celebrating and investing in yourself and things
- Graph 14: luxury purchase motivations, by AHNW consumers vs general population, 2024
- Brands should also focus on emotional satisfaction
- Graph 15: select consumer definitions of luxury (multiple choice, up to five), 2016-24
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Global trends
- Understanding the income-rich sheds light on luxury consumption potential
- 1. Emphasise smart, worthwhile choices
- High-income consumers are the first to compare options and look for a bargain
- Graph 16: select attitudes – I think it’s worth taking the time to compare products to find the best deal, % agree, by household income, 2025
- High-income consumers value convenience and are strict on price
- Graph 17: select consumer behaviours around value, 2019-23
- Income-rich consumers in the US also use coupons
- Graph 18: select shopping behaviours by annual household income, 2022
- The price-per-use approach
- 2. Physical stores are a priority, but brands increasingly have both physical and online stores
- Luxury consumers prefer to shop in store
- Graph 19: where luxury branded items were purchased, 2024
- Physical stores are preferred across retail store categories
- Graph 20: luxury retailers shopped by shopping method, 2023
- Luxury bought online declines
- Graph 21: luxury goods bought online, 2023-24
- Increasing omnichannel adoption
- Customisation appeals to luxury consumers
- Carrying out VTO experiences
- 3. Luxury second-hand goods interest brands and younger consumers
- Circular economy sees European consumers interested in second-hand luxury goods and reselling
- EU implements DPP initiative to manage and share information on the entire product lifecycle
- DPP implementation enables instant resales
- High resale value a draw for younger consumers
- Graph 22: select purchase drivers when buying luxury items, by generation, 2024
- Stirring up the second-hand market and using TikTok to promote accessible luxury
- 4. Focus on loyal consumer segments
- Mytheresa’s focus on affluent consumers is paying off
- Special experiences position brands as ultra-premium
- Financial institutions focus spending on the income-rich
- Graph 23: % change in industry direct mail spend for HIH consumers, 2022-23
- As society ages, brands can’t afford to ignore older consumers
- Graph 24: outlook on DEI in media and marketing – I have felt personally and authentically represented by an advertisement from a brand in the past year, % agree, by generation, 2023
- The Row increases exclusivity by limiting social media coverage
- Club members share values with other members
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Japanese market overview
- Income-rich consumers seek physical and mental enrichment, experiences and leeway
- 1. Reality of the income-rich
- Income-rich households with an income of JPY15m or more account for 3.2% of households
- Graph 25: distribution of households by income bracket, 2023
- For men and women, 40-49 age group has highest proportion of income-rich
- Graph 26: income-rich consumer segmentation, by gender and age, 2023
- Household incomes of JPY15m and over account for 2.9% dual earner households
- Number of individuals earning over JPY15m also on the rise
- Graph 27: number of salaried workers by income bracket (thousands), 2014-23
- 2. Income-rich families are built on stability
- Craft a narrative about how products can save consumers time and enrich daily life
- Power couples + children = power families: high professional status mixed with spending on values
- Even power couples earning JPY20m a year manage their income and expenses carefully
- Graph 28: select values and attitudes of power couples – I managed household income and expenditures using apps or digital tools, % agree, by household income, 2023
- Power families steadily save and invest
- Function-first custom-made suits for power couples
- The income-rich aren’t a homogenous demographic
- Second homes also an investment
- Consumers want value proposals that focus on quality and intentional spending
- 3. Luxury products trends
- Power couples want indulgent rewards
- Graph 29: select values and attitudes of power couples – I managed household income and expenditures using apps or digital tools, % agree, by household income, 2023
- Power couples also have big preference for premium interior decor
- Graph 30: product categories where consumers would like to buy premium/more expensive versions of household products, by household income, 2023
- Appearances are a concern, but consumers aren’t wed to particular brands
- Young male luxury BPC buyers have financial leeway
- Graph 31: financial situation of male luxury BPC consumers, by age, 2023
- Graph 32: financial situation of female luxury BPC consumers, by age, 2023
- Male consumers gift luxury BPC
- Graph 33: BPC products for gifting, by luxury BPC product purchaser’s gender, 2023
- Women approach expensive purchases with logic- and emotion-based reasoning
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Japanese consumer insights
- Demographic characteristics like gender and age affect luxury consumption
- Power couples and families account for more than 90% of respondents
- Graph 34: household composition of consumers with an annual household income of JPY15m or more, 2025
- Respondents most likely to live in Kanto
- Graph 35: where respondents with a household income of JPY15m or more live, 2025
- Distribution of household income by gender and age
- Graph 36: household income, by gender and age, 2025
- The amount available for consumers to spend varies greatly by household income group
- Graph 37: amount consumers can spend freely on themselves per month, by household income, 2025
- 30% of the income-rich haven’t bought luxury goods in the last year
- Graph 38: numbers of luxury categories bought, by gender and age groups, 2025
- 1. Gendered difference in attitudes and behaviours towards luxury products
- Women are drawn to words like “elegant” and “prestigious”, while “status” appeals more to men than women
- Graph 39: defining luxury, by gender (multiple answers possible), 2025
- Women more likely to buy luxury products from a broad range of categories
- Graph 40: luxury shopping history and intention over past 12 months, by gender (multiple answers possible), 2025
- Women shop for themselves; men buy for someone special
- Graph 41: motivations for buying luxury products, by gender (multiple answers possible), 2025
- Women are highly sensitive to new information; a quarter of men don’t gather information at all
- Graph 42: luxury purchase sources of information, by gender (multiple answers possible), 2025
- Nearly half of women aged 40+ gather information in store
- Graph 43: luxury purchase sources of information, by gender and age (multiple responses possible), 2025
- Men are stricter about value for money and cost-effectiveness
- Graph 44: barriers to buying luxury products, by gender (multiple answers possible), 2025
- 2. Spending and perspective on luxury changes according to life stage
- “Exceptional” and “high quality” biggest draws for consumers aged 50+
- Graph 45: defining luxury, by age (multiple answers possible), 2025
- Rarity/limited-edition items central to image of luxury purchases for consumers aged 18-29
- Graph 46: defining luxury purchases, by age (multiple answers possible), 2025
- Gen X men want to express individuality
- Graph 47: motivations for buying luxury products, by gender and generation (multiple answers possible), 2025
- Consumers in their 40s continue to buy across many categories
- Graph 48: numbers of luxury categories bought, by gender and age groups, 2025
- Consumers in their 50s most likely to not buy luxury products
- Graph 49: numbers of luxury categories bought – haven’t bought, % agree, by gender and age, 2025
- Income-rich Millennials can’t afford to indulge
- Graph 50: barriers to buying luxury products, by generation (multiple answers possible), 2025
- 3. Perceptions and trends: second-hand/rental products and buying from a broad range of categories
- Overall, more than 30% of men see second-hand products in a positive light
- Graph 51: attitudes toward luxury products – I don’t mind purchasing second-hand luxury products instead of new ones, % agree, by household income, 2025
- Women aged 18-29 open to rentals; men in their 60s are reluctant
- Graph 52: attitudes toward luxury products – it’s fine to rent luxury products instead of owning them, % agree, by gender and age, 2025
- Defining luxury purchases: Men in their 40s focus on high prices, women in their 30s prioritise potential investments
- Graph 53: select definitions of luxury purchases, by gender and age (multiple answers possible), 2025
- Luxury consumers often buy discretionary products
- Graph 54: numbers of luxury categories bought, by product category, 2025
- Ultra income-rich individuals buy a lot of luxury goods
- Graph 55: luxury shopping history and intention, by household income, 2025
- Support for second-hand and rental options also high among the ultra-income-rich
- Graph 56: attitudes toward luxury products – I don’t mind purchasing second-hand luxury products instead of new ones, % agree, by household income, 2025
- Graph 57: attitudes toward luxury products – it’s fine to rent luxury products instead of owning them, % agree, by household income, 2025
- Ultra-income-rich value investment potential and buy from a broad range of categories
- Graph 58: defining luxury purchases, by household income (multiple answers possible), 2025
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Opportunities in the Japanese market
- Tailor business to the four luxury consumer groups
- Japan’s luxury consumer groups
- Using cluster analysis to identify specific high-income luxury consumers (1)
- Graph 59: attitudes toward luxury products among those with a household income of JPY15m or more, 2025
- Using cluster analysis to identify specific high-income luxury consumers (2)
- Graph 60: components of attitude to luxury, by luxury consumer groups, 2025
- Group 1: Indifferent group (14%)
- Graph 61: luxury consumers with household income of JPY15m or more (indifferent group), by gender and age, 2025
- Promote products you can encounter and use in everyday life
- Group 2: Rational/pragmatic buyers (25%)
- Graph 62: luxury consumers with household income of JPY15m or more (rational/pragmatic buyers), by gender and age, 2025
- Create a particular purpose
- Group 3: Status-/quality-focused (28%)
- Graph 63: luxury consumer group (status/quality focus), by gender and age, 2025
- Provide top-tier products and services in highly exclusive, extraordinary spaces
- Group 4: Flexible brand fans (33%)
- Graph 64: luxury consumers with household income of JPY15m or more (flexible brand fans), by gender and age, 2025
- Expand purchasing range with light luxury offerings
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APPENDIX
- Consumer survey methodology
- Repertoire analysis
- Cluster analysis
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