K-shaped luxury split: Mercedes entry-level India -22% as AMG +34%, Gucci value -35% vs Hermès +18%

Global luxury enters radical restructuring as 20M aspirational buyers exit in 2024-25. India mirrors the bifurcation: Mercedes entry tier sinks 22% while AMG surges 34%. Brand-value gap widens — Gucci -35%, Hermès +18% — signaling that middle-luxury positioning is the squeeze zone for 2025 India strategy.

— Source publishedWed, 17 Jun, 2026, 13:18 IST·First seen Wed, 17 Jun, 2026, 13:19 IST·Source IMAGES Business of Fashion

What happened

Luxury Industry · Analysis of K-shaped luxury market split: aspirational middle-class buyers retreating while ultra-elite spending grows. Cites 22% decline in

Key facts

  • 95% brands grew in 2022
  • 40-45% positive growth in 2025
  • 20M customers lost 2024-2025
  • Mercedes entry-level India -22%
  • AMG +34%
  • Gucci brand value -35%
  • Hermès +18%

Why this matters

Hunt acquisitions in ultra-luxe craftsmanship or genuine value tiers, and divest middle-luxury brands before the -22% to -35% drawdown compresses exit multiples.