British Luxury Summit: 6 Bites of Luxury Reality
The luxury landscape is evolving faster than ever as brands & businesses respond to some harsh realities and unexpected new opportunities.
So what’s the latest…? Here are a few juicy snacks from last month’s Walpole’s British Luxury Summit 2023.
#1 GEN Z ARE IMPACTING LUXURY FASTER THAN PREVIOUS GENS
Young consumers have always had a loud voice, but they are letting their wallets do the talking too. Gen Z are joining the world of luxury purchasing from 15 years old - an impressive 3-5 years earlier than Millennials - and by 2030 will account for one-third of the market spend.*
With the real-world values and experiences that these new luxury consumers have grown up with, luxury brands can no longer live on hedonistic beauty alone - a social and sustainable conscience is non-negotiable.
If you are really serious about getting a head start on the future, isn’t it time to start thinking about Gen Alpha NOW ?
(*figures shared by Marco Federigo from Bain & Company ‘Altagamma Luxury Study’)
#2 ARTIFICIAL INTELLIGENCE CAN DELIVERING LUXURY-STANDARD RETAIL EXPERIENCES - ON AND OFFLINE
FarFetch saw a 22% increase in add-to-bag and an 81% increase in add-to-wish list in this virtual watch try-on trial
AI will rapidly meet the desire for luxury flagship-quality e-commerce experiences. From enabling intuitive search (responsive to visuals and feelings), personalised home screens and conversational chatbots that mimic the bespoke experience VICs get in store – to providing more immersive experiences through virtual try-ons and automated 3D asset creation.
Are you exploring everything AI offers to make your luxury e-commerce experience something worth paying more for ?
Caitlin Innes, Chief Digital & Customer Officer at @harrods, described the role predictive models are playing in rethinking the iconic department store’s customer architecture – supporting their ability to offer unparalleled luxury service face-to-face.
If, like Harrods, unparalleled service and human connection lie at the heart of your luxury brand, what can AI do to make that offline experience even better ?
#3 GLOBAL LUXURY OUT, DOMESTIC CULTURAL LUXURY IN
Driven by the quest for authentic positionings, a newfound appreciation of domestic markets and the rise of a different kind of culturally-driven luxury tourist, brands are refocusing their energies on supporting dynamic IRL neighbourhoods, real digital micro communities, regionally-nuanced campaigns and domestic resourcing.
Dunhill's Spring 2023 campaign used classicism and still life to celebrate a new kind of quintessentially English lifestyle connoiseur
To quote William Oliver, Chief Brand Office at Dunhill, “Any house is a global house, but where you come from is an important part of your storytelling – we offer English style with a global perspective.”
Where is the localised focus of your global brand ?
#4 YOU DON’T KNOW WHAT YOU DON’T KNOW ABOUT DIGITAL IN CHINA
Pandemic-accelerated digital innovation has put China five years ahead of the rest of the world – as the success of luxury live shopping on platforms like Xiaohongshu, Alibaba’s Taobao and Live Tmal proves. The opportunity (including for small luxury brands) are boundless but the scale is daunting.
China has always needed a local touch – brand teams and commercial partners – and that need is becoming stronger than ever.
Have you got the access to the local team you need ? As well as succeeding locally, what digital opportunities can you reapply beyond China ?
# 5 LUXURY HAS ALREADY EVOLVED FROM PRODUCTS TO EXPERIENCES … NEXT STOP, CULTURE CREATION
Empowered by tech and a new breed of consumer (for whom cultural sophistication is the ultimate status item), luxury brands are dreaming BIG.
Tomorrow’s luxury means monetising avant garde excellence across multiple domains (from the urban creative ecosystem to web 3.0) - redefining it as something essential, powerful, and able to function across different impact chains. For brands, that means thinking bigger than equity-building exercises ‘inspired’ by culture – and owning their power as cultural creators themselves.
'Gabrielle Chanel. Fashion Manifesto' exhibition - a reminder that luxury IS culture
Can it be done? Dr Tristam Hunt from the V&A’s revelation that early release tickets for the upcoming Chanel show sold out in a few hours would certainly suggest so.
How will you go beyond product & experience to diversify your luxury portfolio and positioning ?
# 6 FORGET ‘DOING’ ESG (Environmental, Social & Governance) AND START ‘FEELING’ IT
In unchartered waters, a moral compass is a powerful navigation device. @mary portas spoke passionately about the capacity of emotional experiences to engage consumers craving solutions that have ‘soul deep’ beauty.
a lovingly reimagined solid brass pencil sharpener from Makers Cabinet - "its weight is a joy, and it gains beauty and character with age"
Be that “bringing inspiration to everyday objects” through the kind of care and craftsmanship championed by Gen Z stationary design studio @makers cabinet. Or weaving new layered heritage narratives through recycling like design-led social enterprise @goldfinger, which makes furniture for clients such as Hermes using fallen trees and rescued parquet floors.
There are endless opportunities for luxury brands willing to put love, respect, and care at the heart of their business. How can you promote sustainability using the language of the heart ?
Does your luxury brand need a reality check? We’d love to help with B12 tools and techniques to uncover the luxury realities your brand needs to know. Drop us a line at judith@b12strategies.com for a chat.