Fashion and luxury brands struggling to survive are turning to the newly wealthy

The approximately 440,000 millionaires in the U.S.—who made their fortunes from stock market gains last year and, more recently, from the initial public offerings of artificial intelligence companies.

Despite the excitement, however, it remains unclear whether all of this will translate into a new golden age for the global luxury goods sector.

“This industry is increasingly competing with other industries and with other potential costs and purchases,” Federica Levato, an associate at the consulting firm Bain & Company, told Reuters.

The New Rich: The New Solution to the Luxury Crisis

Fashion brands struggling to survive are turning to the rise of tech millionaires for salvation, as they face persistent weakness in China and consumer anxiety worldwide.

The personal luxury goods market, valued at 358 billion euros ($406 billion) in 2025, has shrunk over the past two years, Bain reported in a study last month.

However, North America was among the fastest-growing regions for luxury groups LVMH, Richemont, Hermès, and Kering in the quarter ending March 31.

Richemont CEO Nicolas Bos told analysts in May that a “high level of consumer confidence in the U.S.” is translating into strong sales.

The New Luxury

As they seek to sell to new tech millionaires, brands must take into account their unique tastes and competing interests that divert attention from traditional luxury goods.

“I played volleyball in high school and college,” said Zack Kass, an artificial intelligence strategist who led the sales unit at OpenAI, the creator of ChatGPT, until 2023 and holds a stake in SpaceX. “I literally took my profits from OpenAI and bought a professional sports team,” he said, referring to a volleyball team.

As part of a broader focus on experiences and well-being, tech industry employees are interested in smartwatches that track daily steps and calories, added Harrison Colcord, founder of Harrison Lifestyle Concierge.

A prime example is a former SpaceX engineer whose stock holdings are worth approximately $4 million. He and his wife recently bought new Apple Watches as they double down on their fitness investments, while they plan to reinvest most of their newfound wealth after embarking on a cruise around Alaska.

Opportunity for Watches

However, opportunities remain for traditional watches costing many thousands of dollars from top brands, such as Rolex and Richemont’s Cartier, thanks in part to their appeal as investments, as their resale prices are often higher than retail prices.

The U.S. was the main destination market for Swiss watches in 2025, accounting for 17% of global exports despite significant disruptions from import tariffs, the Federation of the Swiss Watch Industry noted in January. However, apparel brands will have to compete with other industries beyond traditional luxury for their share of consumer spending.

The newly wealthy spend about one-third less on fine clothing and leather goods compared to those with generational wealth, said Filippo Bianchi, who heads the global luxury practice at the Boston Consulting Group.

Instead, their top spending priority is durable assets such as real estate, yachts, and cars, he said.

However, brands such as Chanel and Hermès feature logos that affluent customers are often eager to wear, added Mary Gonsalves Kinney, a California-based stylist who works with tech executives.

Source: in.gr