Everybody wants to be a premium brand in a tough economic environment

Insight summary

• •Wayfair's luxury furniture brand Perigold saw over 35% sales growth in Q2 2026, outperforming overall revenue growth of 7.5%.
• •Many brands are targeting higher-income, premium customers to boost spending amid selective consumer behavior.
• •Data shows spending by the top 10% income earners increased 62% from Q3 2020 to Q3 2025, driving brands to focus on affluent customers.
• •Luxury market shrank 2% in 2026 due to inflation and tariffs, with half of luxury buyers consulting secondhand markets.
• •Premium customers prioritize quality and function and have household incomes around $500,000, differing from status-driven luxury customers.
• •Brands like Caraa invest heavily in R&D and targeted collections to attract premium buyers by emphasizing design and niche sports appeal.
• •Brand loyalty is higher among affluent consumers, making them valuable targets despite overall declining loyalty trends.