The Liminal Luxurian – a view from the edge of luxury

5: Recrafting Luxury

?My monthly musing on a life – and business – spent peering into the world of luxury.

In the face of economic turmoil, the luxury industry has proven its resilience and socio-economic cachet, boasting double-digit growth and record-breaking valuations. But the sector cannot rest on its laurels. New generations of consumers are entering the market faster and blowing in winds of change.??

?Young affluents crave more than a transactional relationship; they want to play an active part in the brand universe – and that’s before they become tomorrow’s luxury clientele. As generations raised in the streetwear era, younger Millennials together with Generations Z and Alpha are true connoisseurs and avid archivists. They have a vision of luxury that is based on trading in knowledge, access, community and craft.?

But why should the luxury industry care? Watchful young audiences are obsessed with heritage and savoir-faire, shifting the codes of luxury and choosing subtle status signifiers over more obvious, overt displays of wealth. This evolution of the trend we identified for our insight and intelligence platform LS:N Global, Uneasy Affluence, is pushing the sector towards a deeper focus on the true value of luxury: quality, craftsmanship, longevity and provenance.???

This greater appreciation of the time and the story behind every piece is also changing the identity of luxury consumers, who are rebranded as collectors who care about more than owning an expensive objet– it’s about owning a collectable piece of history.?

The viral ‘quiet luxury’ trend, which praises minimalism, sophistication and displaying knowledge rather than logos, is also a precursor to wider shifts in the sector set to take effect in the coming years. Yet, to call the influential industry ‘quiet’ is an understatement; luxury isn’t whispering, it’s making a resounding impact as a cultural compass, shaping arts, entertainment, music and sports. Maisons are becoming cultural authorities, dictating what we watch, covet and aspire to. Take, for example, Kering’s new cinematic production arm or LVMHsponsoring the Paris 2024 Olympics.??

What we are witnessing could be viewed as the diffusion of luxury like fine art – a cultural currency with a wide reach, available for many to enjoy but for few to own. While art enthusiasts affirm their interest by visiting museums and buying prints, replicas or art books, luxury fiends use social media to be part of the conversation, access luxury through secondary markets or indulge in hospitality experiences from their favourite brands.??

Although core luxury offerings are increasingly geared towards top-spending clients who are less affected by economic shocks, the sector is still catering for aspirational shoppers by diversifying expressions of craft. From artisanal masterpieces to digital marvels, the luxury industry of tomorrow will meet its tiers of fans and clients in many playgrounds. In the face of an impending generational wealth redistribution, successful luxury brands will be those that adjust to the new baseline of tech adoption, meeting consumer expectations around ESG commitments and a reset of value systems.

To read our Luxury Recrafted report in full, visit https://www.thefuturelaboratory.com/reports

The Luxury Recrafted Report was researched and written by Marta Indeka at The Future Laboratory

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