Gucci explores luxury health and wellness market

If health is the new wealth, luxury brands must take a share of this spending. From billionaires who want to live forever to $300,000 facelifts, the super-rich are splurging more than ever on what they put inside their bodies and how they exercise, rather than simply splurging on clothes and accessories. This outlay competes with typical spending on material goods like jewelry and rare Birkin bags. But it also represents a lucrative market for luxury companies, if they can find the right strategy in a business as dangerous as submerging themselves in an ice bath.

Global spending on wellness products and services that promote health, sleep, nutrition, fitness, mindfulness and appearance reached $2 trillion in 2024, according to McKinsey & Co. and Business of Fashion's State of Fashion 2026 report. That figure could reach up to $2.5 trillion by 2028. McKinsey found that 84% of American and 94% of Chinese consumers prioritized well-being, with younger consumers leading the way.

Not all spending will go to the most advanced treatments. But earning even a fraction of that larger payout would be a vitamin infusion for an industry that has seen unprecedented booms and busts over the past five years.

Beauty brands probably have the advantage, and Kering SA, which has lagged its peers in its bid to revive Gucci, is one of the best positioned. One aspect overlooked in the €4 billion ($4.7 billion) sale of its beauty division to L'Oreal SA in October is the parallel creation of a joint venture to explore opportunities “at the intersection of luxury, wellness and longevity.”

So far, the two companies have revealed little. But L'Oreal is likely to contribute what it has learned from 15 years of research into how our skin and scalp ages. This has already allowed it to introduce sophisticated tools to determine the biological age of the skin and then identify which ingredients, and potentially oral beauty supplements, can improve the health of the body's largest organ. L'Oreal is also developing electronic beauty devices, such as an LED mask, and has increased its investment in Galderma Group AG, which makes injectable fillers.

Meanwhile, Kering will help reach high-net-worth individuals, which it already serves through its brands and special events. Kering Chief Operating Officer Jean-Marc Duplaix told investors in October that the company would contribute its expertise in finding suitable locations in major cities to offer premium experiences that combine wellness and, to some extent, healthcare, in luxury settings.

LVMH Moet Hennessy Louis Vuitton SE's Christian Dior brand has around 10 spas around the world, mainly in luxury hotels. Notably, its first stand-alone spa and foray into U.S. beauty services, in Dior's renovated flagship store in New York, offers services such as a “happiness” program that uses phototherapy to stimulate serotonin and dopamine, a glimpse of where “high well-being,” as Dior describes it, could be headed.

But spas don't have a monopoly. Other physical locations supported by fashion houses satisfy the desire to be fit and well. Golden Goose SpA, the Italian sneaker manufacturer, created a padel stadium in Milan in September, with courts, a store and a social center. Kith Ivy, a new members-only club launched by the streetwear brand's founder Ronnie Fieg in New York, combines wellness, paddle tennis, dining and retail in a unique and exclusive location in the West Village.

Delving into medically focused longevity programs would be one way to capitalize on the desires of the super-rich to proactively manage their health. But there are risks, particularly if more extreme treatments become widespread, such as injecting adolescents' blood for rejuvenation. As with fashion's move into hospitality, where every meal or room that doesn't meet a major customer's expectations hurts the brand, problems with, say, hormone therapy would be even more destructive to value. If beauty or luxury companies go down this path, they must ensure that treatments are backed by science and executed impeccably.

For those unwilling to take the cold plunge, offering wellness-inspired ranges or collaborations may be more acceptable. LVMH's Celine produced a pilates collection last year, including a $3,000 leather-covered kettlebell. Making technology-enhanced jewelry more stylish is another option, given the popularity of both health tracking and expensive trinkets. And although swimwear has tended to focus on looking stylish on Ibiza's beaches, there is scope for more functional yet modern swimsuits, wetsuits or thermal robes. Prada SpA's Linea Rossa sports line, for example, could be a leader in this regard.

Alternatively, luxury brands could align with wellness in their marketing, perhaps encouraging us to pause our busy lives to breathe and feel joy, suggests Erwan Rambourg, an analyst at HSBC Holdings Plc. Louis Vuitton's ship-shaped store in Shanghai focuses on physical travel; Could the next “The Louis” be concerned with the inner journey?

With the growing use of weight-loss medications that encourage strength training to preserve muscle mass, Claudia D'Arpizio, who heads the global fashion and luxury practice at Bain & Co., predicts more form-fitting styles and sleeveless items that emphasize toned arms. Is it a coincidence that Demna Gvasalia's first looks for Gucci included slim silhouettes?

And because the rich live longer, more active lives, they may have a greater appetite for physical goods. We treat ourselves better when we feel happy and wealthy, Mario Ortelli, CEO of the luxury advisory firm Ortelli & Co., told me. If aging well is added to this list, then spending on high-end goods, which tends to peak when we're in our 50s, could extend for many more years.

From biohacking to adding jewelry to Oura rings, high luxury could be a New Year's resolution to get fit.