In a world of abundance, where material possessions are no longer a measure of success, and the tech-fuelled pressures of work and life, give us few moments to be ourselves, the concept of luxury has changed. Luxury is more a state of mind, more an emotional than physical concept, more an experience than an object, and capturing the most valuable aspirations of people today.
New consumers… China will be the world’s largest luxury goods market by 2020, with different aspirations and values. India and Indonesia follow rapidly. Like in the new western markets, people with self-made wealth have different values to those with an inherited starting point. Luxury is still an important psychological marker of social progress, moving from extrovert to introvert adoption.
New aspirations … Consumers have dreams conditioned by every walk of life, conditioned across many different sectors – their favourite restaurant, vacation, celebrity – and as a result, their choices are more diverse. They don’t trust institutions or worship heroes, rather they are influenced by their peers, and their value equation is much more than product and price.
New technologies … Digital platforms have transformed the accessibility of luxury brands, both in exposure and ability to purchase. Gone are the days when a luxury boutique was the embodiment of the dream, the living brand, and unique purchase experience. Luxury brand experiences are most likely to start with a mobile phone … content-rich, co-creating, community-building, and more.