The “quiet luxury” trend, characterised by understated and subtle displays of opulence, has made its way into investor portfolios and demonstrated actual returns. This trend contrasts with the loud and flashy displays of wealth seen in the past, emphasising subtlety and minimalism.
Luxury stocks have long been considered an effective hedge against inflation due to the segment’s high pricing and higher margins. “Quiet luxury” companies, focused on understated elegance and timeless quality, have outperformed their “loud” counterparts in 2023, according to data from DBS Bank.
Some top picks in this category include Hermes, LVMH, Richemont, Swatch, and Brunello Cucinelli. Investors are looking at these companies with a longer-term view, seeking higher quality products with a heritage and a focus on the consumer’s growing preference for subtlety in luxury consumption.