In AOS.VC, I received the Global Powers of Luxury 2026 report by Deloitte. This 38-page forward-looking study is based on a survey of 420 senior executives across ten countries, exploring the future of high-end consumption and technology.

Value Over Volume: A New Phase of Stabilization

The industry is moving away from post-pandemic expansion toward a more measured reality. Two-thirds of executives expect revenues to hold or rise in 2026, with an even larger share anticipating stable or improving margins. Instead of chasing short-term volume, companies are prioritizing pricing power, operational discipline, and durable value. This shift is driving a re-evaluation of store footprints, with 39.3% of firms planning to optimize their networks by focusing on high-quality flagship locations.

GenAI: From Curiosity to Core Execution

Artificial Intelligence is no longer just a topic of discussion; it is entering the execution phase. While 40.7% of companies are still assessing adoption, 41.2% have started implementation in selected areas, and nearly 12% have already embedded GenAI into their most relevant functions. The expected impact is balanced across the value chain, from product design and marketing to supply chain intelligence. In AOS.VC, we are already opening access to deals in AI startups that develop these very tools for hyper-personalization.

India as the New Strategic Frontier

India is emerging as a critical driver of luxury consumption, with a projected growth of nearly 12%. Unlike other regions focusing purely on expansion, Indian executives prioritize financial stability (40%) and massive investment in sustainable manufacturing (56.7%). India is transforming into a global hub for regenerative production. Manufacturers looking to capitalize on this growth can use UDM.MARKET to gain direct access to markets in over 100 countries without intermediaries.

The Relationship Economy and Experience-Led Growth

Demand is shifting from physical products to immersive experiences like travel and hospitality, which grew by 8% to $103.4 billion in 2025. Luxury houses are turning their boutiques into theatrical destinations. The focus is now on expanding the lifetime value per customer through community and high-touch service. To facilitate these seamless transactions in a luxury environment, UDMPAY offers payment acceptance via QR and NFC from 1%, replacing traditional registers and enhancing the customer experience.

Digital Product Passports and Blockchain Traceability

Sustainability has evolved from a reporting requirement into a driver of innovation. Transparency is becoming the foundation for scalability, with Digital Product Passports and blockchain-enabled traceability moving from pilot stages to core infrastructure. About 10.2% of executives now prioritize ESG and circularity investments.

The Normalization of Pre-Owned Luxury

The second-hand market is no longer a niche segment; it is projected to reach $367 billion by 2029, growing 2.7 times faster than the primary apparel market. Over 68% of luxury brands now offer in-house repair and refurbishment services, while 53.8% have launched certified pre-owned programs. This circular ecosystem helps brands maintain pricing discipline and preserve long-term relationships with sustainability-minded younger generations.

Hyper-Personalization Through Data Sharing

Personalization is the top consumer trend, with over 57% of customers expecting tailored communications and products. Brands are integrating customer data platforms and AI models to anticipate tastes and orchestrate one-on-one engagement. In-store tools like clienteling apps and real-time inventory tracking are becoming standard. This deep level of tailoring fosters the high loyalty and retention rates that will define the winners of the 2026 market.

The luxury market is entering a period of stabilization where success depends on being closer to the consumer and sharper in technological execution. For entrepreneurs, the key move is to shift from transactional sales to building a managed, circular lifecycle for every product you create. Will the use of AI in personal luxury eventually replace the traditional human touch of artisanal craftsmanship?